On January 1, 2025, Blue Company sold 11% bonds having Prepare a schedule of interest expense and bond amortization for 2025 - 2027. (Round answer to 2 decimal places, e.g 38,548.25.) Schedule of Interest Expense and Bond Premium Amortization Effective - Interest Method a maturity value of $500,000.00 for $518,953.45, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2025, and mature January 1, 2030, with interest payable December 31 of each year. Blue Company allocates interest and unamortized discount or premium on the effective - interest basis.

On January 1, 2025, Blue Company sold 11% bonds having Prepare a schedule of interest expense and bond amortization for 2025 - 2027. (Round answer to 2 decimal places, e.g 38,548.25.) Schedule of Interest Expense and Bond Premium Amortization Effective - Interest Method a maturity value of $500,000.00 for $518,953.45, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2025, and mature January 1, 2030, with interest payable December 31 of each year. Blue Company allocates interest and unamortized discount or premium on the effective - interest basis.

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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On January 1, 2022 Company K issued $1,000,000, 5% bonds for $855,000. The market rate of interest for these bonds is 7%. Interest is payable annually on December 31. If Company K uses the effective-interest method of amortizing bond discount, what would be the remaining unamortized bond discount at December 31, 2022? A. $135,150 B. $235,000 C. $238,050 D. $134,500
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Laura Hall Company issued $660,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Laura Hall Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Click here to view factor tables. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer 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.) a. The issuance of the bonds. b. The payment of interest and related amortization on July 1, 2025. C The accrual of interest and the related amortization on December 31, 2025. Date Account Titles and Explanation Debit Credit
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Bonds with a stated interest rate of 9% and a face value totaling $610,000 were issued for $634 400 on January 1.2021 whe market interest rate was 8%. The company uses effective-interest bond amortization Required: Determine the carrying value of the bonds at December 31, 2022. (Round your answer to nearest whole dolar) Carrying Value
When Patey Pontoons issued 8% bonds on January 1, 2024, with a face amount of $700,000, the market yield for bonds of similar risk and maturity was 9% The bonds mature December 31, 2027 (4 years). Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2024. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2024. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2024. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2024? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2024? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2027. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1. PVA of $1.…
On June 30, 2024, LN Bean issued $25 million of its 8% bonds for $23 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2024? Multiple Choice $1,150.000 $1.207500 $1.293.750
On January 1, 2021, GLITTER Company issued 10% bonds dated January 1, 2021 with a face amount of ₱8,000,000. The bonds mature on December 31, 2026. For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semi-annually on June 30 and December 31. (Use at most, 4 decimalplaces for PV factors) REQUIREMENTS: a. How much is the interest expense for the year ended, December 31, 2021?b. How much is the interest expense for the year ended, December 31, 2022? c. What is the carrying amount of the bonds on December 31, 2022?
On January 1, 2020, Merry Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2030 forP8,451,000 to yield an effective rate of 10%. Merry Company uses straight-line method of amortization. Interest is payableannually on December 31. At December 31, 2020, what is the balance of the discount on bonds payable?a. P464,490 c. P531,900b. P591,000 d. P472,800
On October 1, 2023 macklin corporation issued 5 %, 10-year bonds with a face value of $6,000,000 at 104. Interest is paid on october 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest payable reported on the december 31, 2023 balance sheet of Macklin corporation would be. A- $75,000 B - $ 69,000 C $138, 000 D $81, 000
Questions # 9-13 are based on the following: Jolly Old Co. issued 8% bonds with a face amount of $900,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Date 1/1/2021 6/30/2021 12/31/2021 6/30/2022 12/31/2022 6/30/2023 12/31/2023 6/30/2024 12/31/2024 Payment 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 Effective Interest 42,092 42,396 42,716 43,052 43,404 43,775 44,163 44,570 12. What is the bond price of this issue? A. $847,924 B. $841,832 Increase in Balance 6,092 6,396 6,716 7,052 7,404 7,775 8,163 8,570 10. What is the interest expense for the first year of the bonds? A. $72,000 B. $12,488 C. $84,488 D. $42,396 11. How much of the discount is amortized in the first year? A. $72,000 B. $42,396 C. $84,488 D. $12,488 9. What amount is debited to the Discount on Bonds Payable account on January 1, 2021? A. $58,168 B. $36,000 C.…