On January 1, 2016, Crammer Inc. issues five-year bonds with a total face amount of $1,000,000 and a stated rate of 8%. The bonds were issued at 103 on January 1, 2016. Interest is paid semiannually on June 30 and December 31. What is the balance in the Premium or Discount account after the June 30, 2016 entry? Show your calculation. What is the carrying value of the bonds after the June 30, 2016 entry? Show your calculation. Give the journal entry to record the repayment of the bond at maturity on January 1, 2021, after all interest has been paid.

On January 1, 2016, Crammer Inc. issues five-year bonds with a total face amount of $1,000,000 and a stated rate of 8%. The bonds were issued at 103 on January 1, 2016. Interest is paid semiannually on June 30 and December 31. What is the balance in the Premium or Discount account after the June 30, 2016 entry? Show your calculation. What is the carrying value of the bonds after the June 30, 2016 entry? Show your calculation. Give the journal entry to record the repayment of the bond at maturity on January 1, 2021, after all interest has been paid.

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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