Jane Smith corporation issued bonds on January 01, 2023, with a face value of $60,000,000. The details are provided below: The corporation uses the effective method for financial reporting. The bonds will mature in five years. The coupon rate is 7.9% and the market interest rate is 8%. The interest payments are semiannually in Jun and December. Required: a. Calculate the cash received by Jane on Jan 01, 2023. b. Prepare the journal entry for the cash received above. c. Provide the journal entry for the interest payment on Jun 30, 2023. d . Provide the journal entry for the interest payment on Dec 31, 2023. e. Provide the journal entry for the interest payment on Jun 30, 2024 f. What are the bonds carrying value on Dec 31, 2023.

Jane Smith corporation issued bonds on January 01, 2023, with a face value of $60,000,000. The details are provided below: The corporation uses the effective method for financial reporting. The bonds will mature in five years. The coupon rate is 7.9% and the market interest rate is 8%. The interest payments are semiannually in Jun and December. Required: a. Calculate the cash received by Jane on Jan 01, 2023. b. Prepare the journal entry for the cash received above. c. Provide the journal entry for the interest payment on Jun 30, 2023. d . Provide the journal entry for the interest payment on Dec 31, 2023. e. Provide the journal entry for the interest payment on Jun 30, 2024 f. What are the bonds carrying value on Dec 31, 2023.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...

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Question

Jane Smith corporation issued bonds on January 01, 2023, with a face value of $60,000,000.
The details are provided below: The corporation uses the effective method for financial
reporting. The bonds will mature in five years. The coupon rate is 7.9% and the market interest
rate is 8% . The interest payments are semiannually in Jun and December. Required: a.
Calculate the cash received by Jane on Jan 01, 2023. b. Prepare the journal entry for the
cash received above. c. Provide the journal entry for the interest payment on Jun 30, 2023. d
. Provide the journal entry for the interest payment on Dec 31, 2023. e. Provide the journal
entry for the interest payment on Jun 30, 2024 f. What are the bonds carrying value on Dec
31, 2023.

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