Discount Mart issued ten thousand $1,000 bonds on January 1, 2024. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bondsEffectiveInterestDecrease inBalanceOutstandingBalance$ 8,640,9678,686,6068,734,0708,783,433Payment12Cash$ 300,000300,000Multiple Choce300,000300,000What is the book value of the bonds as of December 31, 2025?$8.334770$8783,433SELINE.COM$345,639347,464349,36358734,070$ 45,63947,46449,363

Bonds are generally issued either by the government or corporations. These entities use bonds to…

Discount Mart issued ten thousand $1,000 bonds on January 1, 2024. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bond Decrease in Effective Interest Outstanding Balance $8,640,967 Payment 1 2 3 Cash $ 300,000 300,000 300,000 300,000 O Multiple Choce What is the book value of the bonds as of December 31, 20257 $8034770 $8783,433 $ 345,639 347,464 349,36) 38734070 47,464 49,363 8,686,606 8,734,070 8,783,433

Discount Mart issued ten thousand $1,000 bonds on January 1, 2024. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bond Decrease in Effective Interest Outstanding Balance $8,640,967 Payment 1 2 3 Cash $ 300,000 300,000 300,000 300,000 O Multiple Choce What is the book value of the bonds as of December 31, 20257 $8034770 $8783,433 $ 345,639 347,464 349,36) 38734070 47,464 49,363 8,686,606 8,734,070 8,783,433

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, Indigo Corporation issues $4350000, 5-year, 12% bonds at 96 with interest payable on January 1. What is the carrying value of the bonds at the end of the third interest period? $4280400 $4106400 $4245600 $4036800
Sagar
Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $648,412 when the market rate is 6%. Problem 14-4A Part 4 4. Prepare the journal entries to record the first two interest payments. Record the interest payment and amortization on June 30. Record the interest payment and amortization on December 31.
Roarie LLC issued 10,000, $1,000 bonds on January 1, 2020. The bonds have a 10-year term and pay interest semiannually. This is a partial bond amortization schedule for the bonds: Cash Payment Interest A. $4,261,329 B. $7,738,658 C. $4,000,000 D. $3,738,658 Effective Decrease in Interest Balance Disct Cash 1 200,000 313,067 113,067 2 200,000 318,720 118,720 3 200,000 324,657 124,657 4 200,000 330,889 130,889 What would be the total interest cost of the bonds over their full term? Outstanding Balance 10,000,000 (6,261,343) 3,738,658 4,000,000 7,738,658 6,261,343 6,374,410 6,493,130 6,617,787 6,748,676
Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2021 06/30/2021 $950,000 12/31/2021 950,000 06/30/2022 950,000 12/31/2022 950,000 Cash Paid Multiple Choice 5% 12%. Interest Expense $1,009,243 1,012,797 1,016,565 1,020,559 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) 10%. Increase in Carrying Value $59,243 62,797 66,565 70,559 Carrying Value $16,820,715 16,879,958 16,942,755 17,009,320 17,079,879
Blossom Electric sold $3,800,000, 8%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Blossom Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. (a)
3. On July 1, 2018, Volunteer Inc. issued bonds with a $500,000 face value at 108.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 8%. Interest is payable semi-annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For each of the following journal entries there is one account's treatment (DR or CR), that depends on whether it is a bond issued at a premium or a discount. You are to identify if it is a DR or a CR. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). July 1, 2018: to record issuing the bonds DR DR/CR ? CR Dec. 31, 2018: to record the amortization & payment of interest to bondholders: DR…
Landings Glassware Company issues $1,066,000 of 16%, 10 – year bonds at 94 on February 28, 2025. The bonds pay interest on February 28 and August 31. The journal entry to record the issuance includes a O A. credit to Discount on Bonds Payable for $63,960 O B. credit to Bonds Payable for $1,002,040 O C. debit to Cash for $1,066,000 O D. debit to Cash for $1,002,040
Kingbird corporation issued $460,000 8% 20 year bond on January 1,2022 for $418,008.this price resulted in an effective interest rate of 9% on the bonds. Interest is payable annually on January 1. Kingbird uses the effective interest method to amortize bond premium or discount. Prepare the journal entry to record the payment of interest on January 1 2023
Complex Solution Company issues P2 M face value, 9%, 10-year bonds payable on December 31, 2023. Interest is paid semi-annually each June 30 and December 31. The bonds were sold at a price of 98. Complex uses the straight-line method of amortizing bond discounts and premium. **Compute for Amount of Bond Premium or Discount on December 31, 2023. **Bond Interest Expense for 2024 with respect to these bonds **Carrying Value of the bonds as of December 31, 2024.
1. Santos SA issues $300,000 in bonds dated January 1, 2022, due in five years with 9 percent interest payable annually on January 1. At the time of issue, the market rate for such bonds is 9percent.a) Illustrate the bond in line as principal invested and interest rate.b) Check the value of bound is it sold at par value.c) Register accounting transactions on journal entries.
Discount-Mart issues $12 million in bonds on January 1, 2024. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 Interest Expense $600,000 $637,417 HIT 639,662 642,041 644,564 Cash Paid 600,000 600,000 Increase in Carrying Value 600,000 $37,417 39,662 42,041 44,564 Carrying Value $10,623,609 10,661,026 10,700,688 10,742,729 10,787,293 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.)