Required InformationExercise 10-7 (Algo) Straight-Line: Amortization table and bond interest expense LO P2[The following Information applies to the questions displayed below.]Duval Company Issues four-year bonds with a $118,000 par value on January 1, 2021, at a price of $113,864. The annualcontract rate is 6%, and Interest is paid semiannually on June 30 and December 31.Exercise 10-7 (Algo) Part 11. Prepare a straight-line amortization table for these bonds.Note: Round your answers to the nearest dollar amount.SemiannualPeriod-EndUnamortizedDiscountCarryingValue1/01/20216/30/202112/31/20216/30/202212/31/20226/30/202312/31/20236/30/202412/31/2024

Step 1:Computation of the discount on bonds payable on the date of issuance of bonds:Discount on…

Answered: Required Information Exercise 10-7…

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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Exercise 10-7 (Algo) Straight-Line: Amortization table and bond interest expense LO P2 [The following information applies to the questions displayed below. Duval Company issues four-year bonds with a $110,000 par value on January 1, 2021, at a price of $105,895. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31, Exercise 10-7 (Algo) Part 1 1. Prepare a straight-line amortization table for these bonds Note: Round your answers to the nearest dollar amount. Semiannual Period-End 1/01/2021 6/30/2021 12/31/2021 6/30/2022 12/31/2022 6/30/2023 12/31/2023 6/30/2024 12/31/2024 Unamortized Discount Carrying Value
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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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Exercise 14-9 (Algo) Issuance of bonds; effective interest; amortization schedule; financial statement effects [LO14-2] When Patey Pontoons issued 6% bonds on January 1, 2024, with a face amount of $680,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2027 (4 years). Interest is paid semiannually on June 30 and December 31. Required: Determine the price of the bonds at January 1, 2024. (fill out table provided in image) Prepare the appropriate journal entries at maturity on December 31, 2027. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
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Required information Problem 9-5A (Algo) Record bond issue and related interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $400,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Problem 9-5A (Algo) Part 1 Required:1. If the market interest rate is 6%, the bonds will issue at $400,000. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
nku.4 answer must be in table format or i will give downvote
Exercise 10-5 (Algo) Straight-Line: Recording bond issuance and discount amortization LO P2 Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $90,000 and semiannual interest payments. Semiannual Period-End (0) January 1, issuance (1) June 30, first payment (2) December 31, second payment Unamortized Discount $ 6,533 5,716 4,899 Carrying Value $ 83,467 84,284 85,101 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. View transaction list Journal entry worksheet 1 2 3 Record the issuance of the bonds on January 1. Note: Enter debits before credits. Date January 01 General Journal Debit Credit

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