Presented here is a partial amortization schedule for Roseland Company who sold $200,000, fiveyear 8% bonds on January 1, 2012 for $208,000. The bond pays interest semi-annually andcompany uses straight-line amortization.Interest Interest Interest Premium UnamortizedPeriod PaidExpense Amortized PremiumJanuary 1,2023June 30,2023$20,800$21,600(i)$20,000$8,000(ii)(iii)$8,000(iv)Which of the following amounts should be shown in cell (i)?BondCarryingValue$208,000(v)

The bonds are the financial instruments that are issued to raise money fro the market. The bonds are…

Answered: Presented here is a partial…

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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Problem 1 Hurts Company issued $500,000, 25-year, 6% bonds on 1/1/17. These bonds pay interest semi-annually on June 30 and December 31. On the issue date, the market rate of interest was 5%, resulting in a price of 101.5. 1) Determine the issue price of the bond 2) Complete the Amortization Schedule through 12/31/2018. 3) Prepare all necessary bond journal entries for 2017. 4) How would the bond be reported on the balance sheet on December 31, 2018? 5) Record the retirement of the bonds on January 1, 2019, assuming that all of the bonds were called in at a price of 103.
Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. InstructionsSet up a schedule of interest expense and discount amortization under the effective-interest method. (Hint: The effective-interestrate must be computed.)
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Question. On April 1, 2023, King Company issued $400,000 of 5-year bonds. Interest is paid semi-annually on April 1 and October 1. Here is a partial amortization schedule for the first few years of the bond issue. Interest Payment Interest Expense Amortization Carrying Amount of Bonds Apr. 1, 2023 $418,444 Oct. 1, 2023 $8,000 $6,277 $1,723 416,721 Apr. 1, 2024 8,000 6,251 1,749 414,972 Oct. 1, 2024 8,000 6,225 1,775 413,197 Apr. 1, 2025 8,000 6,198 1,802 411,395 Oct. 1, 2025 8,000 6,171 1,829 409,566 Apr. 1, 2026 8,000 6,143 1,857 407,709 b) What is the bonds’ face value? c) What will the bonds’ carrying amount be at the maturity date? d) What will be the total interest payments over the five-year life of the bonds? Total interest expense? e) Prepare the journal entry to record the issuance of the bond. f) Prepare the journal entry for the first three interest payments. g) Prepare the adjusting journal entry on December 31, 2023, assuming this is King’s…
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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 5. What is the market annual interest rate? (Round your answer to the nearest whole percent.) Market annual interest rate
On June 30, 2017, ABC Co. Issued $ 6,000,000, 6%, 4-year bonds. The sold to yield an effective interest rate of 8%. Interest is paid semiannually on June 30 and December 31. The company uses the effective interest method of amortization. Required: For ABC Co. answer the following independent requirements STONERE a Assume that the bond was issued on August 31, 2017, prepare the journal entry on December 31, 2017
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On June 30, 2017, ABC Co. Issued $ 6,000,000, 6%, 4-year bonds. The sold to yield an effective interest rate of 8%. Interest is paid semiannually on June 30 and December 31. The company uses the effective interest method of amortization. Required: For ABC Co. answer the following independent requirements STONERE a Prepare the necessary journal entry on June 30, 2017

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