David Davis Co. sold $2,140,000 of 10%, 10-year bonds at 102 on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on July 1 and January 1. If Davis uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2025, and December 31. 2025. (Round answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $ b. Richard Miller Inc. issued $580,000 of 9%, 10-year bonds on June 30, 2025, for $480,209. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Miller uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. Interest expense to be recorded $

David Davis Co. sold $2,140,000 of 10%, 10-year bonds at 102 on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on July 1 and January 1. If Davis uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2025, and December 31. 2025. (Round answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $ b. Richard Miller Inc. issued $580,000 of 9%, 10-year bonds on June 30, 2025, for $480,209. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Miller uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. Interest expense to be recorded $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
a. Matthew Young Co. sold $1,890,000 of 12%, 10-year bonds at 105 on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on July 1 and January 1. If Young uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2025, and December 31, 2025. (Round answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $ 89775 b. Gary King Inc. issued $570,000 of 9%, 10-year bonds on June 30, 2025, for $471,929. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If King uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $ 18877
a. Jason Allen Co. sold $2,080,000 of 12%, 10-year bonds at 102 on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on July 1 and January 1. If Allen uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2025, and December 31, 2025. (Round answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $ b. Matthew Young Inc. issued $650,000 of 9%, 10-year bonds on June 30, 2025, for $538,165. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Young uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $
(a) Stellar Co. sold $1,950,000 of 12%, 10-year bonds at 106 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Stellar uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. (Round answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $ Interest expense to be recorded LA (b) Pearl Inc. issued $570,000 of 9%, 10-year bonds on June 30, 2020, for $471,929. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Pearl uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) $ 111150 LA
Presented below are two independent situations. Click here to view factor tables. a. George Robinson Co. sold $2,030,000 of 10%, 10-year bonds at 105 on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on July 1 and January 1. If Robinson uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2025, and December 31, 2025. (Round answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $ b. Kenneth Clark Inc. issued $660,000 of 8%, 10-year bonds on June 30, 2025, for $577,750. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If Clark uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) Interest expense…
(a) Pharoah Co. sold $2,080,000 of 12%, 10-year bonds at 102 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Pharoah uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. (Round answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $ (b) Novak Inc. issued $650,000 of 9%, 10-year bonds on June 30, 2020, for $538,165. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Novak uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $
Presented below are two independent situations. Click here to view factor tables. a. Donald Martin Co. sold $1,970,000 of 12%, 10-year bonds at 103 on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on July 1 and January 1. If Martin uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2025, and December 31, 2025. (Round answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $ b. George Robinson Inc. issued $610,000 of 9%, 10-year bonds on June 30, 2025, for $505,047. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Robinson uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) Interest nse to…
On January 1, 2023, Jones Corporation issued $2,982,000, 9%, 5 - year bonds with interest payable on January 1 and July 1. The bonds sold for $2,834,798. The market rate of interest was 11%. Using the effective interst method, the debit entry to interest expense on July 1, 2023 is ( round to the nearest dollar.) A. $155,914. B. $127,566. C. $164,010. D. $134,190.
Give me correct answer with explanation
Marigold Co. sold $5,230,000 of 6%, 10-year bonds at 103 on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on July 1 and January 1. If Marigold uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be recognized on July 1, 2025, and December 31, 2025. Interest expense to be recorded $ LA
Whispering Winds Corp. sold $5,900,000, 11%, 15-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest each December 31. The bonds were sold at 98. (a) Your answer is partially correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, Cash 5,841,584 2022 Premium on Bonds Payable 58,416 Bonds Payable 5,900,000
Sandhill Co. sold $5,600,000, 7%, 15-year bonds on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on December 31. The bonds were sold at 97. Prepare the journal entry to record the issuance of the bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1, 2025 eTextbook and Media eTextbook 1 e Textbook 2 Video List of Accounts eTextbook and Media Debit At December 31, 2025, $11,200 of the bond discount had been amortized. Show the long-term liability balance sheet presentation of the bond liability at December 31, 2025. SANDHILL CO. Balance Sheet (Partial) $ Credit Assistance Used Accictancocod