On January 1, 2021, a company issues 3-year bonds with a face value of $160,000 and a stated interest rate of 7%. Because the marketinterest rate is 5%, the company receives $168,714 for the bonds.Required:Fill in the table assuming the company uses effective-interest bond amortization. (Round your answers to the nearest whole dollar.)Period Ended Cash Paid01/01/202112/31/202112/31/202212/31/2023InterestExpenseAmortizedPremium$000BondsPayablePremium onBonds PayableCarryingValue$0000

Effective interest rate = 5%Therefore, interest expense to be @ market rate = 5% on the Market value…

Answered: On January 1, 2021, a company issues…

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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Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $900,000 in 6% bonds (payable on December 31, 2029) on January 1, 2020, for $864,000. Interest is paid on June 30 and December 31. The market rate of interest is 7%. Required: Prepare the amortization table through December 31, 2021, using the effective interest rate method. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". If required, round your answers to the nearest whole dollar. Sicily Corporation Amortization Table Period Cash Payment (Credit) Interest Expense (Debit) Discount on Bonds Payable (Credit) Discount on Bonds Payable Balance Carrying Value At issue $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 6/30/20 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10 12/31/20 fill in the blank 11 fill in the blank 12 fill in the blank 13…
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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answer quickly
What gain or loss, if any, would X2 record in this date?
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