On January 1, 2026, Manson Corporation issued $3-million 10-year bonds. The bonds paysemi-annual interest on July 1 and January 1, and Manson has a December 31, year-end.Presented below is a partial amortization table:Semi AnnualInterestPeriodJan 1, 2026July 1, 2026Jan 1, 2027July 1, 2027Jan 1, 2028July 1, 2028Jan 1, 2029Interestpayment1$75,000[3]75,00075,00075,00075,000Interestexpense[2]64,70464,49864,28864,07363,855Amortization$10,09510,29610,502[4]10,92711,145BondAmortizedCost[1]3,235,1773,224,8813,214,379[5]3,192,7403,181,595Required:Set up a table in MS Excel with all relevant information. Use the table to answer the followingquestions in MS Excel. Use Excel formulas to support your calculation whenever possiblea. Were the bonds issued at a discount or premium? How do you know?b. What is the face value of the bonds?c. What is the contractual rate of interest?d. Calculate the missing amounts for items [1] through [5] in the amortization tablee. What was the market interest rate when the bonds were issued?f. Prepare the journal entry to record the issue the bonds on January 1, 2026g. Prepare the journal entry to record the first interest payment on July 1, 2026h. Prepare the journal entry to record the accrual of interest on December 31, 2026i. What amounts would be reported as current and as noncurrent liabilities on Manson'sDecember 31, 2026, balance sheet?I

Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…

Presented below is a partial amortization table: Semi Annual Interest Period Jan 1, 2026 July 1, 2026 Jan 1, 2027 July 1, 2027 Jan 1, 2028 July 1 2028 Interest payment $75,000 [3] 75,000 75,000 75.000 Interest expense [2] 64,704 64,498 64,288 64.070 Amortization $10,095 10,296 10,502 [4] 207 Bond Amortized Cost [1] 3,235,177 3,224,881 3,214,379 [5]

Presented below is a partial amortization table: Semi Annual Interest Period Jan 1, 2026 July 1, 2026 Jan 1, 2027 July 1, 2027 Jan 1, 2028 July 1 2028 Interest payment $75,000 [3] 75,000 75,000 75.000 Interest expense [2] 64,704 64,498 64,288 64.070 Amortization $10,095 10,296 10,502 [4] 207 Bond Amortized Cost [1] 3,235,177 3,224,881 3,214,379 [5]

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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Date 12/31/25 12/31/26 12/31/27 12/31/28 12/31/29 Schedule of Note Discount Amortization Debit Interest Expense / Credit Discount on Notes Payable $ Carrying Value of Note
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On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s $300,000, 2-year 8% note with interest compounded semi-annually on July 1 and January 1. The current market rate of similar notes is 12%. Rodney Inc. financial year ends December 31. ANSWER: Complete the following amortization schedule: Cash Interest Amortized Carrying Dates Received Income Amount Amount Jan 1, 2022 0 0 0 $ Jul 1, 2022 $ $ $ $ Jan 1, 2023 " " $ $ $ Jul 1, 2023 " " $ $ $ Jan 1, 2024 " " $ $ $ 2. Prepare the necessary journal entries for the following dates for Rodney Inc. Jan 1, 2022: Dr. Answer $ Cr. Answer $ Dec 31, 2022: Dr. Answer $ Dr. Notes receivable $ Cr. Answer $ Jan 1, 2023: Dr. Answer $ Cr. Answer $ $
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DIRECTION: Prepare an amortization table Kalibo Bank loaned P5,000,000 to Caticlan Company on January 1, 2012. The terms of the loan require principal payments of P1,000,000 each year for 5 years plus interest at 8%. The first principal and interest payment is due on January 1,2013. Caticlan Company made the required payments during 2013 and 2014. However, during 2014 Caticlan Company began to experience financial difficulties, requiring Kalibo Bank to reassess the collectibility of the loan. On December 31,2014, Kalibo Bank has determined that the remaining principal payment will be collected but the collection of the interest is unlikely. Kalibo Bank did not accrue the interest on December 31, 2014. The present value of 1 at 8% is as follows: For one period 0.926 For two periods 0.857 For three periods 0.794 Required: Prepare the amortization table of the loan after impairment.
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Amortization Schedule Consider a $25,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 6%. Set up an amortization schedule for the loan. Do not round intermediate calculations. Round your answers to the nearest cent. If your answer is zero, enter "0". Year Payment $ $ 3 $ 4 $ $ Total $ 1 2 LO 5 Repayment Interest $ $ $ $ $ $ ՄԴ Repayment of Principal $ $ $ $ $ $ es Balance $ $ $ $ $ es How large must each annual payment be if the loan is for $50,000? Assume that the interest rate remains at 6% and that the loan is still paid off over 5 years. Do not round intermediate calculations. Round your answer to the nearest cent. $ How large must each payment be if the loan is for $50,000, the interest rate is 6%, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan is for the same amount as the loan in part b, but the payments are spread out over twice as many periods. Do not round intermediate…