On January 1, 2024, Oriole Ltd. issued bonds with a maturity value of $8.00 million when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2034. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The company's year end is December 31. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 (a) ✓ Your answer is correct. Calculate the issue price of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to O decimal places, e.g. 5,275.) (b) (c) Issue price $ eTextbook and Media List of Accounts 8654046 Your Answer Correct Answer (Used) Attempts: 1 of 3 used Prepare a bond amortization schedule from the date of issue up to and including January 1, 2027. (Round answers to O decimal places, e.g. 5,275.) Date Jan. 1, 2024 ORIOLE LTD. Bond Premium Amortization Table Effective Interest Method-Semi-Annual Interest Payments 5% Bonds Issued at market rate of 4% Interest Payment Interest Expense Premium Amortization Bond Carrying $ July 1, 200,000 173,081 26,919 2024 Jan. 1, 2025 200,000 172,543 27,457 July 1, 2025 200,000 171,994 28,006 Jan. 1, 2026 200,000 171,434 28,566 July 1, 2026 200,000 170,862 29,138 8. Jan. 1, 2027 200,000 170,279 29,721 ་ Prepare all of the required journal entries related to the bonds that Oriole Ltd. will record up to 2026, including any adjusting journal entries at December 31, 2026. (List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Jan. 1, 2024 July 1, 2024 Dec. 31, 2024 Jan. 1, 2025 July 1, 2025 Dec. 31, 2025 Jan. 1.2026 July 1, 2026 Dec. 31, 2026 Account Titles Debit Cred

On January 1, 2024, Oriole Ltd. issued bonds with a maturity value of $8.00 million when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2034. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The company's year end is December 31. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 (a) ✓ Your answer is correct. Calculate the issue price of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to O decimal places, e.g. 5,275.) (b) (c) Issue price $ eTextbook and Media List of Accounts 8654046 Your Answer Correct Answer (Used) Attempts: 1 of 3 used Prepare a bond amortization schedule from the date of issue up to and including January 1, 2027. (Round answers to O decimal places, e.g. 5,275.) Date Jan. 1, 2024 ORIOLE LTD. Bond Premium Amortization Table Effective Interest Method-Semi-Annual Interest Payments 5% Bonds Issued at market rate of 4% Interest Payment Interest Expense Premium Amortization Bond Carrying $ July 1, 200,000 173,081 26,919 2024 Jan. 1, 2025 200,000 172,543 27,457 July 1, 2025 200,000 171,994 28,006 Jan. 1, 2026 200,000 171,434 28,566 July 1, 2026 200,000 170,862 29,138 8. Jan. 1, 2027 200,000 170,279 29,721 ་ Prepare all of the required journal entries related to the bonds that Oriole Ltd. will record up to 2026, including any adjusting journal entries at December 31, 2026. (List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Jan. 1, 2024 July 1, 2024 Dec. 31, 2024 Jan. 1, 2025 July 1, 2025 Dec. 31, 2025 Jan. 1.2026 July 1, 2026 Dec. 31, 2026 Account Titles Debit Cred

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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