QUESTION 1:700,000 X12%1212On January 1, 2019, Osborn plc sold 12% bonds having a maturity valueof £700,000 for £770,650, which provides the bondholders with a 10% yield. The bonds are datedJanuary 1, 2019, and mature January 1, 2024, with interest payable December 31 of each year.Instructions:a. Prepare the journal entry at the date of the bond issuance.Cas hbond paybleDrCr700,000700,000b. Prepare a schedule of interest expense and bond amortization for 2019-2021.DateCash PaidJan 1 2019Dec 201984000Dec 202084000Dec 202184000Interest Expense AmortizationCarrying value770,650c. Prepare the journal entry to record the interest payment and the amortization for 2019.DrCrd. Prepare the journal entry to record the interest payment and the amortization for 2021.DrCr

1. Journal Entry at the Date of Bond Issuance (January 1, 2019):Osborn PLC sold 12% bonds with a…

Answered: QUESTION 1: 700,000 X12% 12 12 On…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Part 3: Bonds On January 1, 2022 JK Exercise Gear issues $600,000 of 5% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. For each scenario, calculate the issue price of a bond, complete the first three rows of an amortization schedule and record the journal entries for the first three transactions. Scenario A: The market interest rate is 7%. 1. The bond is recorded at a 2. Calculate the issue price of the bond: 3. Complete the bond amortization schedule using your Bond Template in Excel. 4. Use your bond amortization schedule and record the journal entry for the issuance of the bond on January 1. Account Debit Account 5. Use your bond amortization schedule and record the journal entry for the first cash interest payment on June 30. Credit Debit Credit
Chapter 10- Bonds Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $3,100,000 par value, mature in four years, and pay 6% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded). No. Date General Journal Debit Credit
Q#9 On June 30, 2021, Singleton Computers issued 5% stated rate bonds with a face amount of $280 million. The bonds mature on June 30, 2036 (15 years). The market rate of interest for similar bond issues was 4% (2.0% semiannual rate). Interest is paid semiannually (2.5%) on June 30 and December 31, beginning on December 31, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:1. Determine the price of the bonds on June 30, 2021.2. Calculate the interest expense Singleton reports in 2021 for these bonds using the effective interest method. 1. Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds
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sh2 Universal Foods issued 8% bonds, dated January 1, with a face amount of $160 million on January 1, 2024. The bonds mature on December 31, 2038 (15 years). The market rate of interest for similar issues was 10%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. Required: 1. Determine the price of the bonds at January 1, 2024. 2. to 4. Prepare the journal entries to record their issuance by Universal Foods on January 1, 2024, interest on June 30, 2024 and interest on December 31, 2031.
Question 1 Bonds (23 marks) Terra Company issued a $300,000, 7.50%, 10-year bond on June 1, 2015. Additional information on the bond follows: Bond Date: January 1, 2015 December 31, 2024 Maturity Date: Yield (Market) Rate: Interest Payment Date: Terra's year end: Required: Round calculations to the nearest dollar a) Calculate the present value of the bond assuming that it had been issued on January 1, 2015. Show calculations/keystrokes. (1 mark) 8% Interest is paid annually on December 31 of each year September 30 b) Prepare a bond amortization table from January 1, 2015 until December 31, 2018. Show each annual interest payment. (3 marks) c) Calculate the total amount of cash received by Terra on June 1, 2015, reflecting the fact the bond was issued on June 1, 2015. Make the journal entry to record the bond issue on June 1, 2015. (4 marks) d) Prepare the adjusting entry required at Terra's year end, Sept 30, 2017. (2 marks) e) Prepare the journal entry on Terra's books to make the…
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