eBook Show Me How ☆ 0 Update Premium Amortization On the first day of the fiscal year, a company issues a $1,200,000, 10%, 8-year bond that pays semiannual interest of $60,000 ($1,200,000 x 10% x 1/2), receiving cash of $1,267,404. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

eBook Show Me How ☆ 0 Update Premium Amortization On the first day of the fiscal year, a company issues a $1,200,000, 10%, 8-year bond that pays semiannual interest of $60,000 ($1,200,000 x 10% x 1/2), receiving cash of $1,267,404. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

See similar textbooks

Similar questions

On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium
Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discount
On the first day of the fiscal year, a company issues a $2,400, 000, 6%, 6-year bond that pays semiannual interest of $72,000, receiving cash of 2, 523,092. Use straight line amortization, journalize thebfirst interest oayment snd the amortization of the related bind premium. Riund to the nearest dollar. If an amohnt box does not require an entry, leave it blank.
On the first day the fiscal year, a company issue a $437,000, 7%, 10years bond that pays semiannual interest of $15,295 ($437,000 x 7% x 1/2), receiving cash of $458,900. Journalize the entry for the first interest payment and amortization of premium using the straight-in line method. If an amount box does not require an entry, leave in blank. ____________ _____ _______ _____________ ______ ________
On the first day of the fiscal year, a company issues a $616,000, 8%, 10-year bond that pays semiannual interest of $24,640 ($616,000 x 8% x 1/2), receiving cash of $646,800. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. blank
On the first day of the fiscal year, a company issues a $784,000, 6%, 10-year bond that pays semiannual interest of $23,520 ($784,000 x 6% x 1/2), receiving cash of $823,200. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. OUD
On the first day of the fiscal year, a company issues a $896,000, 7%, 10-year bond that pays semiannual interest of $31,360 ($896,000 x 7% x 1/2), receiving cash of $940,800. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank.
On the first day of the fiscal year, a company issues a $1,000,000, 5%, five-year bond that pays semiannual interest of $25,000 ($1,000,000 × 5% x 1/2), receiving cash of $1,044.913. Joumalize the entry to record the first interest payment and amortization of premium using the straight-line method. Edit View Insert Format Tools Table 12pt v Paragraph v
On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays semiannual interest of $33,495 ($957,000 x 7% x 1/2), receiving cash of $1,004,900. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank
On the first day of the fiscal year, a company issues a $967,000, 8%, 10-year bond that pays semiannual interest of $38,680 ($967,000 x 8% x 1/2), receiving cash of $1,015,400. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select -
Subject - account Please help me. Thankyou.