The Duros Corp issued a $1,000,000, 5%, 10 year bond at 105. This pays interest annually and the company uses a straight-line amortization for all premiums and discounts. Which entry properly reflects the payment of the first year of interest and proper treatment of the premium or discount (if applicable)? Question 9 options: Interest Expense Cash 50000 50000 Interest Expense 55000 Discount on Bonds Payable Cash 50000 Interest Expense 47500 Premium on Bonds Payable Cash 52500 Interest Expense 45000 Premium on Bonds Payable Cash 50000 5000 5000 5000

The Duros Corp issued a $1,000,000, 5%, 10 year bond at 105. This pays interest annually and the company uses a straight-line amortization for all premiums and discounts. Which entry properly reflects the payment of the first year of interest and proper treatment of the premium or discount (if applicable)? Question 9 options: Interest Expense Cash 50000 50000 Interest Expense 55000 Discount on Bonds Payable Cash 50000 Interest Expense 47500 Premium on Bonds Payable Cash 52500 Interest Expense 45000 Premium on Bonds Payable Cash 50000 5000 5000 5000

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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ond-Question 1 n September 1, 2021, Imperial Corporation issued $1,000,000, 6%, 10-year bonds. Interest is payable annually with the first payment due on September 1, 2022 structions a) b) C) Provide the appropriate journal entry on September 1, 2021 to record the issuance of the bonds if the market rate of interest is 5% and the bond was issued for $1,077,217 Assuming Imperial has a December 31 year end, prepare the 2021 year-end adjusting entry to account for accrued interest on the bonds. Round your answer to the nearest dollar Prepare a partial balance sheet at December 31, 2021 for Imperial Corporation displaying all amounts related to the bonds Prepare the journal entry on September 1, 2022 to record the first interest payment. Assume the bonds were redeemed for $1,050,000 at September 30, 2024 when the amortized cost was $ 1,035,000 Record the redemption of the bonds d) e) Student Response:
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26. Bonds Issued at a Premium (Effective Interest) Charger Battery issued $100,000 of 11%, seven-year bonds on December 31, 2022, for $104,868. Interest is paid annually on December 31. The market rate of interest is 10%. Required: Prepare the amortization table using the effective interest rate method. For those boxes in which no entry is required, leave the box blank. If the amount is zero, enter "0". If required, round your answers to the nearest whole dollar.
Required information Skip to question [The following information applies to the questions displayed below.] Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense
"Ace Company issued P100,000 face of 6%, 10 year-bonds, with interest payable semi-annually. Ace uses straight-line method of amortization. The assumed price is P104,000. Ace Company's journal entry on the first semi-annual interest payment would include:" O DEBIT of: Premium on Bonds Payable of P200. O DEBIT of: Premium on Bonds Payable of P200.
Question 7: Messi issues $3,400,000 of 10%, 10-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,010,000. a. Prepare the January 1 journal entry to record the bonds' issuance. For each semiannual period, compute (a) the cash payment, (6) the straight-line discount amortization, and (c) the bond interest expense. b. Determine the total bond interest expense to be recognized over the bonds' life. C. Prepare the first two years of a straight-line amortization table. d. Prepare the journal entries to record the first two interest payments.
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An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?