Required information [The following information applies to the questions displayed below.] Duval Company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of $109,870. The annual contract rate is 5%, and interest is paid semiannually on June 30 and December 31. 3. Prepare the journal entry for maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded). View transaction list

Required information [The following information applies to the questions displayed below.] Duval Company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of $109,870. The annual contract rate is 5%, and interest is paid semiannually on June 30 and December 31. 3. Prepare the journal entry for maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded). View transaction list

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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Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $67,000 for $73,507 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid annually on December 31. Required: 1. & 2. Record the bond issue and first interest payment on December 31, 2021.
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[The following information applies to the questions displayed below.] Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C Req 3 Req 4 Req 5 Complete the…
Required information [The following information applies to the questions displayed below] Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,325,594. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C Req 3 Req 4…
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Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is 6% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2. Prepare an effective interest amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments.
Required information Skip to question [The following information applies to the questions displayed below.]Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,592,334.Required:1. Prepare the January 1 journal entry to record the bonds’ issuance.2(a) For each semiannual period, complete the table below to calculate the cash payment.2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization.2(c) For each semiannual period, complete the table below to calculate the bond interest expense.3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.4. Prepare the first two years of a straight-line amortization table.5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below.…
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Ellis Company issues 8.5 %, five - year bonds dated January 1, 2021, with a $540,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $550, 969. The annual market rate is 8.0% on the issue date. Required: Compute the total bond interest expense over the bonds' life. Prepare an effective interest amortization table for the bonds' life. Prepare the journal entries to record the first two interest payments.
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On January 1, 2025, Martinez Company issued $1,800,000 face value, 7%, 10-year bonds at $1,932,482. This price resulted in a 6% effective-interest rate on the bonds. Martinez uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. (a) Prepare the journal entries to record the following transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 125.) 1. 2. 3. 4. No. 1. 2. 3. 4. The issuance of the bonds on January 1, 2025. Accrual of interest and amortization of the premium on December 31, 2025. The payment of interest on January 1, 2026. Accrual of interest and amortization of the premium on December 31, 2026. Date Jan. 1, 2025 Dec. 31, 2025 Jan. 1, 2026 Dec. 31, 2026 Account Titles and…