j. Bonds Payable - Series 1 On January 1, 2015, Hazer issued $400,000 12% 10-year bonds. Interest is paid annually. The bonds were issued for investors to have a yield of 10%. Because of the high interest rate, Hazer decided to call the bonds on December 31, 2020 at 110. No entries were made in 2020 regarding this bond. The bondholders are entitled to receive the 2020 interest payment (prior to call). In the Excel spreadsheet, see the tab labelled "Bonds Payable - Series 1" to determine the carrying value, create the amortization schedule and perform any additional calculations. NOTE - the amount on the trial balance (Bonds Payable - Series 1) is your check number for the amortization schedule at December 31, 2020 - BEFORE ADJUSTMENTS and recording the 2020 interest payment. Present Value Calculation & Amortization Schedule PV Rate Nper Pymt FV Type

j. Bonds Payable - Series 1 On January 1, 2015, Hazer issued $400,000 12% 10-year bonds. Interest is paid annually. The bonds were issued for investors to have a yield of 10%. Because of the high interest rate, Hazer decided to call the bonds on December 31, 2020 at 110. No entries were made in 2020 regarding this bond. The bondholders are entitled to receive the 2020 interest payment (prior to call). In the Excel spreadsheet, see the tab labelled "Bonds Payable - Series 1" to determine the carrying value, create the amortization schedule and perform any additional calculations. NOTE - the amount on the trial balance (Bonds Payable - Series 1) is your check number for the amortization schedule at December 31, 2020 - BEFORE ADJUSTMENTS and recording the 2020 interest payment. Present Value Calculation & Amortization Schedule PV Rate Nper Pymt FV Type

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On January 1, 2021, Jackie Company issued 10,000 P5,000 10% four-year bonds at an effective interest rate of 12%. The interest is payable every July 1 and December 31. On June 30, 2023, 6,000 of the bonds were retired at 98. How much is the interest expense for 2021?How much is the discount amortization during 2022?How much is the net effect of the bonds on the 2023 Statement of Comprehensive Income? [Indicate whether it is a gain or loss]How much is the interest expense for 2024?
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
26. Bonds Issued at a Premium (Effective Interest) Charger Battery issued $100,000 of 11%, seven-year bonds on December 31, 2022, for $104,868. Interest is paid annually on December 31. The market rate of interest is 10%. Required: Prepare the amortization table using the effective interest rate method. For those boxes in which no entry is required, leave the box blank. If the amount is zero, enter "0". If required, round your answers to the nearest whole dollar.
1)
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.)
solve
Oct 1, 2023: Record the retirement of bond for $883,000. Record the retirement of bond for $887,879. Record the retirement of bond for $890,900.
Aggies Inc. issued bonds with a $450,000 face value, 8% interest rate, and a 4-year term on July 1, 2018, and received $510,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. 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 premium Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank. A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 B. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 C.
View Policies On January 2, 2015, Monty Corporation issued $ 1,950,000 of 10% bonds at 98 due December 31, 2024. Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method.") Current Attempt in Progress The bonds are callable at 101 (i.e., at 101% of face amount), and on January 2, 2020, Monty called $ 1,170,000 face amount of the bonds and redeemed them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Monty as a result of retiring the $ 1,170,000 of bonds in 2020. (Round answer to O decimal places, eg. 38,548.) Loss on redemption Prepare the journal entry to record the redemption. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented…
please fill the pictures out Quatro Company Issues bonds dated January 1, 2021, with a par value of $790.000. The bonds' annual contract rate Is 9%, and Interest Is pald semiannually on June 30 and December 31. The bonds mature In three years. The annual market rate at the date of Issuance Is 8%, and the bonds are sold for $810.694. 2 How much total bond Interest expense will be recognized over the Iife of these bonds? 3. Prepare a straight-line amortization table for these bonds.
Answer isn’t 1,000,000
(d) What will be the total interest payments over the five-year life of the bonds? Total interest expense? Total interest payments Total interest expense

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