Chap 9 Q.2 rks Profiles Tab Window HelpakeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=falseCourse HomeCul... P Sp23 Math 1080-...eBookEntries for issuing bonds and amortizing discount by straight-line methodOn the first day of its fiscal year, Chin Company issued $20,600,000 of 5-year, 6% bonds to finance its operations of producing and selling home improvement products. Interest ispayable semiannually. The bonds were issued at a market (effective) interest rate of 7%, resulting in Chin receiving cash of $19,743,417.a. Journalize the entries to record the following:1. Issuance of the bonds.2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)If an amount box does not require an entry, leave it blank.I1. Cash✓Discount on Bonds PayableBonds Payable✓2. Interest Expense✓Discount on Bonds PayableCash✓3. Interest Expense✓Discount on Bonds PayableCashShow Me HowFeedback.✓✓Q☆ k ✰000000PreviousNext >Up arks Profiles Tab Window HelptakeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=falseCourse HomeCul... P Sp23 Math 1080-...eBookFeedbackb. Determine the amount of the bond interest expense for the first year.$Show Me HowCheck My WorkBonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization providesequal amounts of amortization over the life of the bond.c. Why was the company able to issue the bonds for only $19,743,417 rather than for the face amount of $20,600,000?The market rate of interest is greater than ✔the contract rate of interest. Therefore, inventors are notFeedbackFeedbackCheck My Workb. Remember that the amortization of a bond discount or premium affects the amount of interest expenses recorded.c. Bonds will be issued for either a higher or lower amount than the face value when the market and contract rates of interest are different.Check My WorkPartially correctQ Û ☆ k✓willing to pay the full face amount of the bonds.(

Journal Entry :— It is an act of recording transaction in books of account when transaction…

Entries for issuing bonds and amortizing discount by straight-line method On the first day of its fiscal year, Chin Company issued $20,600,000 of 5-year, 6% bonds to finance its operations of producing and selling home improvement products. Inte payable semiannually. The bonds were issued at a market (effective) interest rate of 7%, resulting in Chin receiving cash of $19,743,417. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. I 1. Cash - ✓ Discount on Bonds Payable Bonds Payable 2. Interest Expense ✓ Discount on Bonds Payable Cash ✓ Discount on Bonds Payable ✓ 3. Interest Expense Cash Feedback ✓ ✓ ✓ 000 000 000 000 Previous

Entries for issuing bonds and amortizing discount by straight-line method On the first day of its fiscal year, Chin Company issued $20,600,000 of 5-year, 6% bonds to finance its operations of producing and selling home improvement products. Inte payable semiannually. The bonds were issued at a market (effective) interest rate of 7%, resulting in Chin receiving cash of $19,743,417. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. I 1. Cash - ✓ Discount on Bonds Payable Bonds Payable 2. Interest Expense ✓ Discount on Bonds Payable Cash ✓ Discount on Bonds Payable ✓ 3. Interest Expense Cash Feedback ✓ ✓ ✓ 000 000 000 000 Previous

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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E12.17
Problem 9-25 Fudge factors An oil company executive is considering investing $10.1 million in one or both of two wells: well 1 is expected to produce oil worth $3.01 million a year for 10 years; well 2 is expected to produce $2.01 million for 15 years. These are real (inflation-adjusted) cash flows. The beta for producing wells is 0.91. The market risk premium is 9%, the nominal risk-free interest rate is 7%, and expected inflation is 3%. The two wells are intended to develop a previously discovered oil field. Unfortunately there is still a 21% chance of a dry hole in each case. A dry hole means zero cash flows and a complete loss of the $10.1 million investment. Ignore taxes and make further assumptions as necessary. a. What is the correct real discount rate for cash flows from developed wells? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Real discount rate b. The oil company executive proposes to add 20 percentage points to the…
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P3-2A Lazy River Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is as follows. Lazy River Resort, Inc. Trial Balance August 31, 2014 Account Number Debit Credit € 19,600 3,300 6,000 25,000 125,000 26,000 101 Cash Supplies Prepaid Insurance Land Buildings Equipment Accounts Payable Unearned Rent Revenue 126 130 140 143 157 € 6,500 7,400 201 208 Mortgage Payable Share Capital-Ordinary Dividends 80,000 100,000 275 311 332 5,000 429 Rent Revenue 80,000 3,600 51,000 9,400 622 Maintenance and Repairs Expense Salaries and Wages Expense Utilities Expense 726 732 €273,900 €273,900 In addition to those accounts listed on the trial balance, the chart of accounts for Lazy River Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable, No. 144 Accumulated Depreciation-Buildings, No. 158 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 631…
What information is included in Form 10-K?
Hansen Corporation. a C Corporation (mot a manufacturer) reports the following items in income and expenses for 2021 Gross Revenue $900,000 Dividend Received from 30% owned Corp 200,000 LTCG 30,000 STCL 12000 City of Lee's Summit Bond Interest 10000 COGS 375000 Administrative Expenses 325000 Charitable Contribution 60,000 Compute Hansen's C Corp Taxable income?