PA10-4 Comparing Bonds Issued at Par, Discount, and Premium [LO10-3] Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2020 Maturity amount and date: $270,000 due in 10 years (December 31, 2029) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2020 Required: 1. Provide the following amounts to be reported on the January 1, 2020, financial statements immediately after the bonds were issued: (Amounts to be deducted should be indicated with minus sign.) Case B (issued at 100) (issued at 98) (issued at 105) Case A Case C a Bonds payable b Unamortized premium (or discount) c. Carrying value 2. This part of the question is not part of your Connect assignment.

PA10-4 Comparing Bonds Issued at Par, Discount, and Premium [LO10-3] Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2020 Maturity amount and date: $270,000 due in 10 years (December 31, 2029) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2020 Required: 1. Provide the following amounts to be reported on the January 1, 2020, financial statements immediately after the bonds were issued: (Amounts to be deducted should be indicated with minus sign.) Case B (issued at 100) (issued at 98) (issued at 105) Case A Case C a Bonds payable b Unamortized premium (or discount) c. Carrying value 2. This part of the question is not part of your Connect assignment.

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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Subject- accounting
Mr. X was an employee with the following information from his employment in 2020. Salaries and wages - $27,000 RRSP contribution in 2020 - $5,500 Membership dues paid by Mr. X - $500 Calculate Mr. X's the net employment income for 2020? Question 7 options: a) $21,500 b) $27,500 c) $21,000 d) $27,000
Required Information P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Interest $ 1,661 ? ? 1,640 Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 -10-10 Part 3 Cash $ 1,792 ? ? Cash received ? Amortization $ 131 ? 145 ? Balance 32,566 32,435 32,297 ? 32,000 $ . How much cash was received on the day the bonds were issued (sold)?
Required information Exercise 9-18 (Algo) Record bonds issued at a premium and related annual interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $530,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year.Assuming the market interest rate on the issue date is 5%, the bonds will issue at $596,050. Exercise 9-18 (Algo) Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Hint: Use Illustration 9–7, except the dates for the first three rows will be 1/1/2024, 12/31/2024, and 12/31/2025 since interest is payable annually rather than semiannually. Interest expense for the period ended December 31, 2024, is calculated as the carrying value of $596,050 times the market rate of 5%.) (Round your final answers to the nearest whole dollar.)
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Question 2. Recording and Reporting Bonds Robinson Inc., as a public company, issues $3 million of 10%, 10-year, corporate bonds on January 1, 2010. The bonds pay interest on every January 1 after the issuance. The company uses the effective-interest amortization method. Required: If market rate on issue date is 10%, prepare journal entries for the issuance and journal entries at the end of December 2010, 2011, and 2019. If market rate on issue date is 12%, prepare journal entries for the issuance and journal entries at the end of December 2010 and 2011. If market rate on issue date is 8%, prepare journal entries for the issuance and journal entries at the end of December 2010, 2011, and 2019.
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