Problem: Module 3 Textbook Problem 6 Learning Objectives: Required For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round intermediate calculations.) a. b. • 3-6 Using the straight-line method show how bonds issued at a discount affect financial statements • 3-7 Using the straight-line method show how bonds issued at a premium affect financial statements C. d. Gray Co. issued $66,000 of 6 percent bonds at 102 1/2 Bush, Inc. issued $81,000 of 10-year, 6 percent bonds at 98 1/2. Oak, Inc. issued $188,000 of 20-year, 6 percent bonds at 102. Willow Co. issued $157,000 of 15-year, 7 percent bonds at 97. $ 67,650 Premium Discount Premium 1,570 Discount $

Problem: Module 3 Textbook Problem 6 Learning Objectives: Required For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round intermediate calculations.) a. b. • 3-6 Using the straight-line method show how bonds issued at a discount affect financial statements • 3-7 Using the straight-line method show how bonds issued at a premium affect financial statements C. d. Gray Co. issued $66,000 of 6 percent bonds at 102 1/2 Bush, Inc. issued $81,000 of 10-year, 6 percent bonds at 98 1/2. Oak, Inc. issued $188,000 of 20-year, 6 percent bonds at 102. Willow Co. issued $157,000 of 15-year, 7 percent bonds at 97. $ 67,650 Premium Discount Premium 1,570 Discount $

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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How do I journalize the bonds at face amount?
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Mind Tap- Cengage Learning gagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false еВook Show Me How E Calculator Entries for Bond (Held-to-Maturity) Investments Instructions Chart of Accounts Journal (X Instructions Bula Investments acquired $245,200 of Effenstein Corp., 5% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $112,000 of Effenstein Corp. bonds at 101. Required: Journalize the entries to record the following a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1 - b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1." c. The receipt of semiannual interest on April 1, 20Y2. " d. The sale of $112,000 of Effenstein Corp. bonds on April 1, 20Y2, at 101." e. The receipt of the face value of the remaining bonds at their maturity on October 1, 20Y8.* "Refer to the chart of…
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and investment transactions nstructions structions urnalize the entries to record the following selected bond investment transactions for Hall Trust (refer to the Chart of Accounts for exact wording of account titles): 9 urnal 10 Apr. 1 Purchased for cash $372,000 of Medina City 3% bonds at 100 plus accrued interest of $2,790, paying interest semiannually. Received first semiannual interest payment. Sold $139,200 of the bonds at 98 plus accrued interest of $348. June 30 July 31 Apr. 1 Chart of Accounts Journal Jun. 30 Jul. 31 Investments-Medina City Bonds *My Work 1 moro Interest Receivable Cash Cash Interest Receivable Interest Revenue Cash Loss on Sale of Investments Interest Receivable Investments-Medina City Bonds 372,000.00 2,790.00 5,580.00 133,980.00 5,568.00 I 374,290.00 2,790.00 2,790.00 ↑ ↑ ↓ ↑ ↓ Shaded cells have feedback ↑
Question 5 Company ABC, Co issued bonds at a premium and reports interest expense with the effective interest method. At each subsequent interest payment date, the cash interest paid is: A) Not Equal to the effective interest. B) Equal to the effective interest. C) Not Always the same dollar amount O A O B O C Drovieu MacBook Air F1 F2 F3 F4 F5 F6 F 7 23 24 3 4 & 7 Q E R T A F G H C V B
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eBook Calculator Print Item ACCOUNT Bonds Payable ACCOUNT No. Balance Date Item Debit Credit Debit Credit Jan. Balance 400,000 2. Retire bonds 80,000 320,000 June 30 Issue bonds 240,000 560,000 ETA ACCOUNT Discount on Bond Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit ET Jan. 1. Balance 18,000 2. Retire bonds 6,400 11,600 June 30 Issue bonds 16,100 27,700 ETA Amortize discount Dec. 31 1,390 26,310 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds ETA.. Issue bonds ETA Amortization of discount Check My Work 3 more Check My Work uses remaining. Previous Next 12:27
Learning Objective 3:Question 1: Straight-line MethodWired Inc. sold 10-year bonds with a total face amount of $1,500,000 and a stated rate of 10%. The bonds sold for $1,400,000 on January 1, 2020, and pay interest semiannually on June 30 and December 31.Required:1. Prepare the entry to recognize the sale of the bonds. 2. Determine the amount of the semiannual interest payment required by the bonds. 3. Prepare the journal entry made by Wired at June 30, 2020, to recognize the interest expense and an interest payment.Record the first interest payment. 4. Determine the amount of interest expense for 2020.
engageNOWv2 | Online teach X Active Learning Monopoly - Yo takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress-false Institution Page < Cash Journalize the bond issuance. If an amount box does not require an entry, leave it blank. 88 ✓ Premium on Bonds Payable Bonds Payable Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $5,300,000, 8% , five-year bond that pays semiannual interest of $212,000 ($5,300,000 x 8% x %), receiving cash of $5,520,390. Feedback Check My Work C ✓ X Z O RAI MindTap-Cengage Learning Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. ASUS Oll X + ES Previous Next Oct 8 ★口 7:57 0