Sylvestor Company issues 9%, five-year bonds, on December 31, 2016, with a par value of $180,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying Value (0) 12/31/2016 $ 6,600 $ 173,400 (1) 6/30/2017 5,940 174,060 (2) 12/31/2017 5,280 174,720 Use the above bond amortization table and prepare journal entries to record (a) the issuance of bonds on December 31, 2016; (b) the first interest payment on June 30, 2017; and (c) the second interest payment on December 31, 2017.

Sylvestor Company issues 9%, five-year bonds, on December 31, 2016, with a par value of $180,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying Value (0) 12/31/2016 $ 6,600 $ 173,400 (1) 6/30/2017 5,940 174,060 (2) 12/31/2017 5,280 174,720 Use the above bond amortization table and prepare journal entries to record (a) the issuance of bonds on December 31, 2016; (b) the first interest payment on June 30, 2017; and (c) the second interest payment on December 31, 2017.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ellis Company issues 7.5%, five-year bonds dated January 1, 2021, with a $440,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $449,140. The annual market rate is 7.0% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2 Dr the de life
Af the fimе oj of On January 1, 2007, FFF Inc. issued its 10 percent bonds in the face amount of P1,500,000. They mature on January 1, 2017. The bonds were issued for P1,329,000 to yield 12 percent, resulting in bond discount of P171,000. FFF uses the effective-interest method of amortizing bond discount. Interest is payable July 1 and January 1. 5. For the six months ended June 30, 2007, FFF should report bond interest expense of Nos. 6-8 pertains to the following: On February 28, 2017, GGG Industries issued 10% bonds, dated January 1, with a face amount of P48 million. The bonds were priced at P42 million (plus accrued interest) to yield 12%. Interest is paid semiannually on June 30 and December 31. Required: What would be the amount(s) related to the honds GCC 6.
On January 1, 2020, Sunny Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2030 for P8,451,000 to yield an effective rate of 10%. Sunny Company uses straight-line method of amortization. Interest is payable annually on December 31. At December 31, 2020, what is the balance of the discount on bonds payable? a. P464,490 c. P531,900 b. P591,000 d. P472,800
please provide correct answer
aj.7
On April 1, 2016, Lerner Corporation issued $120,000 of five-year, 10% bonds at a market (effective) interestrate of 8%. Interest is payable semiannually on April 1 and October 1What is the amount of the semi-annual interest payment?Will the bonds be issued at a discount or premium?Present Value of the Semiannual Interest PaymentInterest RateNumber of PeriodsFactorPresent Value of the Interest PaymentsPresent Value of the Bond Face AmountInterest RateNumber of PeriodsFactorPresent Value of the FaceBonds ProceedsAmount of Discount or Premium
On June 30, 2020, the market interest rate is 2.4%. Colwood Enterprises issues $500,000 of 3.4%, 16-year bonds at 110.625. The bonds pay interest on June 30 and December 31. Colwood amortizes bonds by the effective-interest method. Requirements 1. Prepare a bond amortization table for the first four semi-annual interest periods. 2. Record issuance of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the semi-annual interest payment on June 30, 2021. Requirement 1. Prepare a bond amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) A B Colwood Enterprises Amortization Table C D Interest Expense Interest Payment (1.2% of Preceding Premium Semi-Annual (1.7% of Maturity Value) Bond Carrying Amount) (A-B) Premium (D-C) Amortization Account Balance Amount ($500,000+ E Bond Carrying D) Interest Date June 30, 2020 Dec. 31, 2020 June 30, 2021 Dec. 31, 2021 June 30, 2022
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 6. What is the total cash paid for interest assuming the bonds mature in 20 years? (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000)) Total cash interest
Discount-Mart issues $12 million in bonds on January 1, 2024. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 Interest Expense $600,000 $637,417 HIT 639,662 642,041 644,564 Cash Paid 600,000 600,000 Increase in Carrying Value 600,000 $37,417 39,662 42,041 44,564 Carrying Value $10,623,609 10,661,026 10,700,688 10,742,729 10,787,293 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.)
Garcia Company issues 13.5%, 15-year bonds with a par value of $490,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 11.5%, which implies a selling price of 112 1/4. Prepare the journal entry for the issuance of these bonds for cash on January 1. View transaction list Journal entry worksheet 1 Record the issue of bonds with a par value of $490,000 at a selling price of 112 1/4. Note: Enter debits before credits. Date January 01 Record entry General Journal Clear entry Debit Credit View general journal
Garcia Company issues 8.0%, 15-year bonds with a par value of $290,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6.0%, which implies a selling price of 114 3/4. Prepare the journal entry for the issuance of these bonds for cash on January 1. View transaction list Journal entry worksheet < Record the issue of bonds with a par value of $290,000 at a selling price of 114 3/4. Note: Enter debits before credits. Date January 01 Record entry General Journal Clear entry Debit Credit He View general Journal
you had been given the following concerning ABC " Company CALLABLE bonds: Value Stated Rate Market Rate Maturity Interest Date Payment 1/7/2017 100,000 10% 6 5 Years Semiannual Selling Price 117,060 Based on the above given information Answer the following questions: if the company is using the effective interest method 1. if the company pays interest on July 14 and December 31 What is the amount of interest expense that must be presented on the company's income statement for the year 2018 ?· The Answer is: 2. At what value must the company present its bonds payable as 31/12/2018 ? The Answer is 3. If the company called 60 % of its outstanding bonds at 103 on 30/6/2019, then the company must Pay Cash with an amount of For the year 2019 the company must Present interest Expense with value of on income statement, and a of on the income statement as