Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below. Interest Cash Payment Payment Interest Decrease in Book Date Amount Expense Discount Discount Value June 30, 2021 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $441,068 $444,310 $447,683 $451,190 $454,838 $458,631 $462,577 $81,068 $84,310 $87,683 $91,190 $94,838 $98,631 $102,577 $892,240 $807,929 $720,247 $629,056 $534,219 $435,587 $333,011 $226,331 $115,385 $11,107,760 $11,192,071 Dec 31, 2021 June 30, 2022 $11,279,753 $11,370,944 $11,465,781 $11,564,413 $11,666,989 $11,773,669 $11,884,615 $12,000,000 Dec 31, 2022 June 30, 2023 Dec 31, 2023 $360,000 $360,000 $360,000 $360,000 June 30, 2024 $466,680 $470,947 $106,680 $110,947 $115,385 Dec 31, 2024 June 30, 2025 Dec 31, 2025 $475,385 $0 1. What journal entry will Devin make on June 30, 2022 to record the third interest payment? 2. When the bonds mature on December 31, 2025 how much principal will the company pay to investors? 3. Do the bonds pay interest annually or semiannually?
Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below. Interest Cash Payment Payment Interest Decrease in Book Date Amount Expense Discount Discount Value June 30, 2021 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $441,068 $444,310 $447,683 $451,190 $454,838 $458,631 $462,577 $81,068 $84,310 $87,683 $91,190 $94,838 $98,631 $102,577 $892,240 $807,929 $720,247 $629,056 $534,219 $435,587 $333,011 $226,331 $115,385 $11,107,760 $11,192,071 Dec 31, 2021 June 30, 2022 $11,279,753 $11,370,944 $11,465,781 $11,564,413 $11,666,989 $11,773,669 $11,884,615 $12,000,000 Dec 31, 2022 June 30, 2023 Dec 31, 2023 $360,000 $360,000 $360,000 $360,000 June 30, 2024 $466,680 $470,947 $106,680 $110,947 $115,385 Dec 31, 2024 June 30, 2025 Dec 31, 2025 $475,385 $0 1. What journal entry will Devin make on June 30, 2022 to record the third interest payment? 2. When the bonds mature on December 31, 2025 how much principal will the company pay to investors? 3. Do the bonds pay interest annually or semiannually?
Chapter1: Financial Statements And Business Decisions
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Problem 1Q
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