On June 30, 2020, the market interest rate is 4.5%. Colwood Enterprises issues $515,000 of 5.5%, 12-year bonds at 113.944. The bonds pay interest on June 30 and December 31. Colwood amortizes bonds by the effective-interest method. Requirements 1. Prepare a bond amortization table for the first four semi-annual interest periods. 2. Record issuance of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the semi-annual interest payment on June 30, 2021. Requirement 1. Prepare a bond amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) Colwood Enterprises Amortization Table Semi-Annual Interest Date me 10 3030 Interest Payment (2.75% of Maturity Value) Interest Expense (2.25% of Preceding Bond Carrying Amount) C Premium Amortization Premium Account Bond Carrying Amount Balance (D-C) (A-B) ($515,000+ D)

On June 30, 2020, the market interest rate is 4.5%. Colwood Enterprises issues $515,000 of 5.5%, 12-year bonds at 113.944. The bonds pay interest on June 30 and December 31. Colwood amortizes bonds by the effective-interest method. Requirements 1. Prepare a bond amortization table for the first four semi-annual interest periods. 2. Record issuance of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the semi-annual interest payment on June 30, 2021. Requirement 1. Prepare a bond amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) Colwood Enterprises Amortization Table Semi-Annual Interest Date me 10 3030 Interest Payment (2.75% of Maturity Value) Interest Expense (2.25% of Preceding Bond Carrying Amount) C Premium Amortization Premium Account Bond Carrying Amount Balance (D-C) (A-B) ($515,000+ D)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2024, Robert Unlimited issues 8%, 20-year bonds payable with a face value of $240, 000 The bonds are issued at 104 and pay interest on June 30 and December 31. (Assume bond payable are amortized using the straight-line amortization method.) Read the requirements. Requirement 1. Journalize the issuance of the bonds on January 1, 2024. (Record debits first, then credits. Select explanations on the last line of the journal entry.) \table[[Date, Accounts and Explanation, Debit, Credit ], [2024], [Jan. 1]...........] Requirements Joumalize the issuance of the bonds on January 1, 2024. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2024. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2024 Journalize the retirement of the bond at maturity, assuming the last interest payment has already been recorded. (Give the date.)
On January 1, 2021, Gibson Company issues $5,000,000 of 10 year bonds at an issuance price of 98. The bonds pay interest on June 30 and December 31. The stated interest rate in 8%. Make the journal entries for: January 1, 2021 June 30, 2021 December 31, 2021 June 30, 2022 December 31, 2022 December 31, 2030 when the bonds mature.
Haley Inc. issued $350,000, 8% bonds on August 1, 2021. Interest is payable semi-annually on February 1 and August 1. The bonds mature on August 1, 2025. At the time of issuance, similar bonds were trading at 9%. Haley Inc. has a year-end of December 31. Required: Create a bond amortization schedule for the term of the bond. Round amounts to the nearest dollar. Prepare all required journal entries for 2021 and 2022 (including the issuance of the bonds). Round all amounts to the nearest dollar.
On June 30, 2020, the market interest rate is 7%. Moreau Enterprises issues $500,000 of 8%, 19-year bonds at 110.625. The bonds pay interest on June 30 and December 31. Moreau amortizes bonds by the effective-interest method Requirements 1. Prepare a bond amortization table for the first four semi-annual interest periods. 2. Record issuance of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the semi-annual interest payment on June 30, 2021. Requirement 1. Prepare a bond amortization table for the first four semi-annual interest periods (Round your answers to the nearest whole dollar.) Moreau Enterprises Amortization Table Semi-Annual Interest Date June 30, 2020 Dec. 31, 2020 June 30, 2021 Dec. 31, 2021 June 30, 2022 A Interest Payment (4% of Maturity Value) B Interest Expense (3.5% of Preceding Bond Carrying Amount) C Premium Amortization (A-B) D E Premium Account Bond Carrying Amount Balance (D-C) ($500,000 + D)
On April 1, 2019, Company Y issued a 10-year bond for $5,265,750. The bonds have a stated rate of 5% and pay interest semi- annually on 01/01 and 01/07. The bonds were issued at 102. How much was the face value of the bonds?
Tano Company issues bonds with a par value of $180,000 on January 1, 2021. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $170,864. Required: 1. What is the amount of the discount on these bonds at issuance? (Use cells A2 to M5 from the given information to complete this question.) Discount 2. How much total bond interest expense will be recognized over the life of these bonds? (Use cells A2 to M5 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values.) Total Bond Interest Expense Over Life of Bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense 3. Prepare a straight-line amortization table for these bonds. Amount of semi-annual discount amortization (0) (1) (2) (3)…
On January 1, 2022, Johnson Company issues $100,000 face amount bonds. Thesebonds pay 7% APR interest. Interest is paid semiannually on June 30th andDecember 31st. The bonds mature in 10 years.On January 1, 2022, the market rate for similar bonds was 8% and thereforethe bonds were sold with a $6,795 discount.Johnson Company uses the effective interest method to calculate interest expense. REQUIRED: Prepare the following entries for Johnson Company.1-1 Prepare the January 1, 2022 journal entry record the bond issue.1-2 Prepare the June 30, 2022 journal entry to record the interest payment.1-3 Prepare the June 30, 2023 journal entry to record the interest payment.
A company issues 8%, two-year bonds on December 31, 2018, with a par value of $10,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 96.0% or $9,600. (a) Prepare an amortization table for these bonds; use the straight-line method to amortize the discount. Then prepare journal entries to record; (b) The issuance of bonds on December 31, 2018; (c) The first interest payments on each June 30 and December 31; and (d) The maturity of the bond on December 31, 2020.
Aggies Inc. issued bonds with a $450,000 face value, 8% interest rate, and a 4-year term on July 1, 2018, and received $510,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank. A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 B. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 C.
On May 1, 2023, ACT Company issued a 4-year, P3,000,000 face value bonds with a stated rate of 10%. The effective interest rate for similar bonds is 12%. Interest on the bonds is payable semi-annually on October 30 and April 30. ACT Company uses the calendar year as its reporting period. What is the carrying amount of the bonds on December 31, 2023? A What is the interest expense for the year 2024?B. What is the Discount on Bonds Payable to be reported in the Statement of Financial Position on December 31, 2025?
On February 1, 2021, Sanford & Son issued 12% bonds dated February 1, 2021, with a face amount of $110,000. The bonds sold for $128,876 and mature in 20 years. The effective interest rate for these bonds was 10%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year. Required:1. Prepare the journal entry to record the bond issuance on February 1, 2021.2. Prepare the entry to record interest on July 31, 2021, using the straight-line method.3. Prepare the necessary journal entry on December 31, 2021.4. Prepare the necessary journal entry on January 31, 2022.
Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. Check (3) $4,143,552 3. Determine the total bond interest expense to be recognized over the bonds' life. (4) 12/31/2022 carrying value, $3,528,920 4. Prepare the first two years of a straight-line amortization table like Exhibit 14.7. 5. Prepare the journal entries to record the first two interest payments.