Joseph Moore Company sells 9% bonds having a maturity value of $1,720,000 for $1,534,000. The bonds are dated January 1, 2025,and mature January 1, 2030. Interest is payable annually on January 1.Click here to view factor tables.Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 2 decimalplaces, e.g. 38,548.25.)CashPaid15480010Schedule of Discount AmortizationStraight-Line MethodInterestExpenseLADiscountAmortizedi00101CarryingValue of Bonds50001534000

The bonds are issued to raise the money from the market or investors. The bonds are issued at a…

Answered: Joseph Moore Company sells 9% bonds…

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 August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Bramble’s year-end is December 31. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 1 enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an…
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sheridan Limited issued $4,500,000 10-year, 8% bonds on January 1, 2021, when the market interest rate was 9%. The bonds were sold at 94. Interest is payable semi-annually on July 1 and December 31. Sheridan has a December 31 year e Provide the journal entry to record the payment of interest on July 1, 2021. please only round final answers to 2 decimal places
On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9,472,126. The bonds pay 30. Score Ltd, amortizes bond premium by the effective-interest method. Required 1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method. 2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 3 Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) B: Interest Expense (4.5% of Preceding Bond Carrying Amount) A: Interest Payment Semi-annual Interest (5.5% of Maturity Period Values) Issue date. March 31, 2024 September 30, 2024 March 31, 2025 September 30, 2025 440,000 440,000 440,000 440,000 426,245 C: Premium Amortization (A-B) 13,755 D: Unamortized Premium…
Edward Lewis Company sells 8% bonds having a maturity value of $2,840,000 for $2,624,680.00. The bonds are dated January 1, 2025, and mature January 1, 2030. Interest is payable annually on January 1. Click here to view factor tables. (a) Determine the effective-interest rate. (Round present value factor to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 18%) The effective-interest rate
3. On July 1, 2018, Volunteer Inc. issued bonds with a $500,000 face value at 108.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 8%. Interest is payable semi-annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For each of the following journal entries there is one account's treatment (DR or CR), that depends on whether it is a bond issued at a premium or a discount. You are to identify if it is a DR or a CR. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). July 1, 2018: to record issuing the bonds DR DR/CR ? CR Dec. 31, 2018: to record the amortization & payment of interest to bondholders: DR…
2. On July1, 2018, Dixon Inc. issued bonds with a $500,000 face value at 96.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 11%. Interest is payable annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For each of the following journal entries there is one account's treatment (DR or CR), that depends on whether it is a bond issued at a premium or a discount. You are to identify if it is a DR or a CR. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). July 1, 2018: to record issuing the bonds DR DR/CR ? CR June 30, 2019: to record the amortization & payment of interest to bondholders: DR…
Cullumber Company sold $2,000,000, 4%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Cullumber Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. (c) Prepare the journal entries for interest and the amortization of the premium in 2022 and 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount…
Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $540,871. The annual market rate is 7.5% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2. Prepare an effective interest amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments. Please need answer for all with working please answer do not waste time or question by holding attempt if you can otherwise skip
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Carla Corporation issued $510,000 of 7% bonds on November 1, 2025, for $542,033. The bonds were dated November 1, 2025, and mature in 8 years, with interest payable each May 1 and November 1. Carla uses the effective-interest method with an effective rate of 6% Click here to view factor tables. Prepare Carla's December 31, 2025, adjusting entry. (Round intermediate calculations to 5 decimal places, eg. 1.25124 and final answers to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) Date December 31. 2025 Account Titles and Explanation Debit Credit
Coronado Inc. issued $920,000 of 10%, 10-year bonds on June 30, 2025, for $814,472. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Coronado uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded

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