Lewis Corporation issued $520,000 of 7%, 10-year bonds payable at a price of 93. The market interest rate at the date of issuance was 8%, and the bonds pay interest semiannually. The journal entry to recordthe first semiannual interest payment using the effective-interest amortization method isOAOB.O C.DateDateDateAccounts and ExplanationInterest ExpenseDiscount on Bonds PayableCashAccounts and ExplanationInterest ExpenseDiscount on Bonds PayableCashCachAccounts and ExplanationInterest ExpenseDiscount on Bonds PayableDebit21,944Debit23,348Debit20,748Credit1,14420,800Credit2,54820,800Credit2,54818 2004Next

BOND Bond is a Financial Securities which is Generally Issued by the Corporation's, Government &…

Answered: Lewis Corporation issued $520,000 of…

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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Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Assume that the bonds were issued for $421,840. Prepare an amortization table for the first three payments. Annual Annual Interest Annual Interest Amortization of Ending Carrying Interest Expense Payment Premium Value Period 1 2 3 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). [HINT - You definitely will want to use this EXCEL spreadsheet Chapter13 HW-02 #1 #2 Worksheets.xlsx a to assist in your calculations.)
3. Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments. Semiannual Interest Period Semiannual Interest Expense Semiannual Interest Payment Amortization of Discount Ending Carrying Value 1 2 3 PLEASE NOTE: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345).
26. A company issued 10-year, 9% bonds with a par value of $500,000 when the market rate was 9.5%. The company received $484,087 in cash proceeds. Using the effective interest method, prepare the issuer's journal entry to record the first semiannual interest payment and the amortization of any bond discount or premium. (Round answers to the nearest dollar)
Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Assume that the bonds were issued for $421,840. Prepare an amortization table for the first three payments.
Sheridan Company issued $3500000 of 6%, 10-year bonds on one of its interest dates for $3023000 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. The journal entry to be recorded at the end of the second year for the payment of interest and the amortization of discount will include a credit to Discount on Bonds Payable for $31840. credit to Discount on Bonds Payable for $34387. credit to Cash for $244387. debit to Bond Interest Expense for $210000.
Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is 6% 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.
Ivanhoe Pet Supply Company issued $400,000 of 8 %, 10-year bonds at 102. Interest is paid annually, and the straight-line method is used for amortization. Assume that the market rate for similar investments is 7%. The bonds are issued on the date of the bonds.
Diana Inc. issued $150,000 of its 9%, 5-year bonds for $144,218 when the market rate was 10%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments. Round intermediate and final answers to whole dollar amount. Cash InterestPayment Interest onCarrying Value Amortization ofDiscount Carrying Value
On January 1, a company issues bonds dated January 1 with a par value of $560,000. The bonds mature in 5 years. The contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The market rate is 9% and the bonds are sold for $537,828. The journal entry to record the second interest payment using the effective interest method of amortization is:
Diana Inc. issued $300,000 of its 5%, 5-year bonds for $287,215 when the market rate was 6%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments. Round intermediate and final answers to whole dollar amount. Cash InterestPayment Interest onCarrying Value Amortization ofDiscount Carrying Value Jan. 1, Year 1 $fill in the blank 1 June 30, Year 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 fill in the blank 5 Dec. 31, Year 1 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 June 30, Year 2 fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13
The Melon Company issues $519,000 of 8%, 10-year bonds at 103 on March 31, Year 1. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight- line method for amortization. Calculate the net balance that will be reported for the bonds on the September 30, Year 1 balance sheet. (Round your intermediate answers to the nearest dollar.) Group of answer choices $533, 791 $535, 349 $519,000 $534, 570
Diana Inc. issued $300,000 of its 5%, 5-year bonds for $287,215 when the market rate was 6%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments. Round intermediate and final answers to whole dollar amount. Cash Interest Interest on Amortization of Payment Carrying Value Discount Carrying Value Jan. 1. Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2

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Lewis Corporation issued $520,000 of 7%, 10-year bonds payable at a price of 93. The market the first semiannual interest payment using the effective-interest amortization method is