On March 1, 2021 Lesley Company issued at 103 plus accrued interest 4,000 of 9% P1,000 face value bonds. The bonds are dated January 1, 2021 and mature on January 1, 2031. Interest is payable semiannually on January 1 and July 1. The entity paid bond issue cost of P200,000. What is the net cash received from the bond issuance?
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On March 1, 2021 Lesley Company issued at 103 plus accrued interest 4,000 of 9% P1,000 face
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- Moore Inc. issued bonds with a $500,000 face value, 8% interest rate, and a 4-year term on July 1, 2020 and received $475,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2020: entry to record issuing the bonds. B. June 30, 2021: entry to record payment of interest to bondholders. C. June 30, 2021: entry to record amortization of discount. D. June 30, 2022: entry to record payment of interest to bondholders. E. June 30, 2023: entry to record amortization of discount.Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. what is the journal entry to record the sale of these bonds on January 1, 2022. what is the adjusting journal entry on December 31, 2022, to record interest expense. what is the journal entry on January 1, 2023, to record interest paid.The following section is taken from Bramble Corp.’s balance sheet at December 31, 2021. Current Liabilities Interest Payable $ 89,500 Long-term Liabilities Bonds payable, 5%, due January 1, 2024 1,790,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. a) Journalize the payment of the bond interest on January 1, 2022. b) Assume that on January 1, 2022, after paying interest, Bramble calls bonds having a face value of $602,000. The call price is 105. Record the redemption of the bonds. c) Prepare the entry to record the accrual of interest on December 31, 2022.
- Temptation Vacations issues $58 million in bonds on January 1, 2021, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: (1) (2) (3) (4) (5) Cash Paid for Interest Interest Expense Decrease in Carrying Value Carrying Value Date 1/1/2021 $65,279,805 6/30/2021 $1,740,000 1,631,995 $108,005 $65,279,805 12/31/2021 1,740,000 1,629,295 $110,705 65,171,800 6. What is the total cash paid for interest assuming the bonds mature in 20 years? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Total cash interestX2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid InterestExpense Decrease inCarrying Value CarryingValue 01/01/2021 124,380 12/31/2021 15,000 14,304 696 123,684 12/31/2022 15,000 14,224 776 122,907 12/31/2023 15,000 14,134 866 122,042 12/31/2024 15,000 14,035 965 121,076 12/31/2025 15,000 13,924 1,076 120,000 What is the annual market interest rate on the bonds? Multiple Choice 5.8%. 6.3%. 11.5%. 12.5%.On April 1, 2019, Ellison Co. issued 4-year, 7%, $100,000 face value bonds. The bonds were issued at 107.0919 , the interest payable annually on April 1. The bonds were sold to yield 5%. a) Complete the following table: Carrying Cash Interest Premium Date amount of Paid Expense Amortization bonds April 1 2019 April 1 2020 April 1 2021 April 1 2022 April 1 2023 b) Journalize the required entries on the following dates April 1, 2019 December 31, 2019 – adjusting entry April 1, 2020 2
- An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?On January 1, 2018, Educators Credit Union issued 7%, 20-year bonds payable with a face value of $100,000. The bonds pay interest on June 30 and December 31. How do I Journalize the payment of interest and amortization on June 30, 2018.?On January 1, 2021, Sheffield Corporation issued $6400000, 10-year, 9% bonds at 103. Interest is payable annually on January 1. The journal entry to record this transaction on January 1, 2021 is A) Cash 6592000 Bonds Payable 6592000 B) Premium on Bonds Payable 192000 Cash 6400000 Bonds Payable 6592000 C) Cash 6592000 Bonds Payable 6400000 Premium on Bonds Payable 192000 D) Cash 6400000 Bonds Payable 6400000
- 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.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.Discount-Mart issues $17 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date Cash Paid InterestExpense Increase inCarrying Value CarryingValue 01/01/2021 $15, 050,113 $ 15,050,113 06/30/2021 $850,000 903,007 53, 007 $15, 103,120 12/31/2021 850,000 906,187 56, 187 15,159,307 06/30/2022 850,000 909,558 59, 558 15,218,865 12/31/2022 850,000 913,132 63, 132 15,281,997 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.)
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