On January 1, 20X1, Nicks Corporation issued $250 million of floating-rate debt. The debt carries a contractual interest rate of “LIBOR plus 5.5%,” which is reset annually on January 1 of each year. The LIBOR rates on January 1, 20X1, 20X2, and 20X3, were 6.5%, 7.0%, and 5.5%, respectively.   Required: Prepare a journal entry to record the issuance of the bonds on January 1, 20X1, at par. What was the effective (or market) interest rate when the bonds were issued? Prepare a journal entry to record interest expense for 20X1, 20X2, and 20X3. Assume that interest is paid annually on December 31. What is the market value of the debt at December 31, 20X3, assuming Nicks Corporation’s credit risk has not changed.

On the first day of the fiscal year, a company issues a $868,000, 9%, 10-year bond that pays semiannual interest of $39,060 ($868,000 × 9% × 1/2), receiving cash of $911,400.   Required:    Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles.     Chart Of Accounts     CHART OF ACCOUNTS   General Ledger   ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment   LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds…

The Company issued a short-term debt of $65,000 on July 1, 2021 for a period of 5 months with a note payable of 14% interest. The company uses the accounting period on a quarterly basis. Required: Prepare the journal entries needed to record the issuance of the debt, recognize interest expense, and pay off the debt as it matures. Note: Include the current method of processing and the excel formula

On the first day of the fiscal year, a company issues a $676,000, 11%, 10-year bond that pays semiannual interest of $37,180 ($676,000 x 11% x 1/2), receiving cash of $709,800. Journalize the entry for the first interest payment and amortization of premium using the straight-line method.If an amount box does not require an entry, leave it blank