Exercise 9-12B Record bonds issued at a premium and related semian interest (The following information applies to the questions displayed below.] On January 1, Year 1, a company issues $460,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 4%, the bonds will issue at $511,511. Exercise 9-12B Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Interest Expense Date Cash Paid Decrease in Carrying Value Carrying Value 01/01/Year 1 24 460,000 06/30/Year 1 2$ 19,950 $ 10,230 $ 9,720 12/31/Year 1 19,950 10,230 9,720

Exercise 9-12B Record bonds issued at a premium and related semian interest (The following information applies to the questions displayed below.] On January 1, Year 1, a company issues $460,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 4%, the bonds will issue at $511,511. Exercise 9-12B Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Interest Expense Date Cash Paid Decrease in Carrying Value Carrying Value 01/01/Year 1 24 460,000 06/30/Year 1 2$ 19,950 $ 10,230 $ 9,720 12/31/Year 1 19,950 10,230 9,720

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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PROBLEM 4-1 On March 2, 2020, VWX Co. received authorization to issue P6,000,000, 5-year bonds with interest of 12% per annum, payable every Mar. 2nd. The bonds were issued at 103.5% (net of bond issue cost) on the same date. The company will use the amortized cost method. REQUIRED: 1. Compute for the effective interest rate. Carry computations up to the three decimal places. 2. Prepare a premium amortization table. Carry computations to the nearest whole peso. 3. Prepare the 2020 entries including year-end adjustments (Dec. 31) and a compound closing entry.
EXERCISE 21-3 On January 1, Murphy, Inc., issues 7 percent, 20-year bonds with a face value of $650,000 at 96. Interest is payable on June 30 and December 31. Journalize the following entries: a. Issuance of the bonds b. Payment of semiannual interest on June 30 and December 31 C. Adjusting entry to amortize the discount on December 31, the company's year end
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Question 2. Recording and Reporting Bonds Robinson Inc., as a public company, issues $3 million of 10%, 10-year, corporate bonds on January 1, 2010. The bonds pay interest on every January 1 after the issuance. The company uses the effective-interest amortization method. Required: If market rate on issue date is 10%, prepare journal entries for the issuance and journal entries at the end of December 2010, 2011, and 2019. If market rate on issue date is 12%, prepare journal entries for the issuance and journal entries at the end of December 2010 and 2011. If market rate on issue date is 8%, prepare journal entries for the issuance and journal entries at the end of December 2010, 2011, and 2019.
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x Premium Amortization On the first day of the fiscal year, a company issues a $8,500,000, 9%, 10-year bond that pays semiannual interest of $382,500 ($8,500,000 × 9% × ½), receiving cash of $9,077,589. 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. Interest Expense fill in the blank fill in the blank Premium on Bonds Payable fill in the blank fill in the blank Cash
Required information Exercise 9-11B Record bonds issued at a discount and related semiannual interest (LO9-6) [The following information applies to the questions displayed below.] On January 1, Year 1, a company issues $440,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $410,103. Exercise 9-11B Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Interest Increase in Date Cash Paid Carrying Value Expense Carrying Value 01/01/Year 1 06/30/Year 1 12/31/Year 1
Subject: accounting
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Exercise 14-5 (Algo) Straight-Line: Recording bond issuance and discount amortization LO P2 Paulson Company issues 8%, four-year bonds, on January 1 of this year, with a par value of $103,000 and semiannual interest payments. Semiannual Period-End (0) January 1, issuance (1) June 30, first payment (2) December 31, second payment Use the above straight-line bond amortization table and prepare journal entries for the following. Unamortized Discount $ 6,793 (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. Carrying Value $ 96,207 97,056 97,905 5,944 5,095
Question 6 (i) On 1 April, year 1, Happy Corporation issues $50 million of 10%, 30-year bonds payable at par. Interest on the bonds is payable semiannually each 1 April and 1 October. The journal entry to record the first cash payment to bondholders on 1 October, year 1, will include: A: A credit to Cash of $5,000,000. B: A credit to Interest Payable of $2,500,000. C: A debit to Bonds Payable of $5,000,000. D: A debit to Interest Expense of $2,500,000. (ii) ABC Manufacturing Company sold a vehicle for cash of $70,000 with a loss of $10,000 recognized. The accumulated depreciation amounted to $140,000. The original cost of the asset must have been: A: $130,000. B: $150,000. C: $200,000. D: $220,000.