a. Indicate whether the bonds were issued at a premium or a discount.b. Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method.c. Determine the stated interest rate and the effective-interest rate.The stated rateThe effective rateDate%d. On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2019. (If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amountis entered. Do not indent manually. List all debit entries before credit entries.)January 1,2019%Account Titles and ExplanationDebitCredit The following amortization and interest schedule reflects the issuance of 10-year bonds by Wildhorse Corporation on January 1,2019, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements areprepared once yearly.Year1/1/2019202020212019 $12,500202220232024202520262027Cash2028Amortization Schedule$13,30512,50013,40112,50013,51012,50013,63112,50013,76712,500 13,91914,08912,50012,50012,500Interest12,50014,28014,49314,731AmountUnamortized$14,12613,32112,42011,41010,2799,0127,5936,0044,2242,231CarryingValue$ 110,874111,679112,580113,590114,721115,988117,407118,996120,776122,769125,000

The bonds are the financial instruments that are issued to raise money from the market or investors.…

The following amortization and interest schedule reflects the issuance of 10-year bonds by Wildhorse Corporation on Janu 2019, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statemen prepared once yearly. Year 1/1/2019 2020 2021 2019 $12,500 $13,305 12,500 2022 2023 2024 2025 2026 2027 Cash 2028 Amortization Schedule 12,500 12,500 12,500 12,500 12,500 12,500 12,500 Interest 12,500 13,401 13,510 13,631 13,767 13,919 14,089 14,280 14,493 14,731 Amount Unamortized $14,126 13,321 12,420 11,410 10,279 9,012 7,593 6,004 4,224 2,231 Carrying Value $ 110,874 111,679 112,580 113,590 114,721 115,988 117,407 118,996 120,776 122,769 125,000

The following amortization and interest schedule reflects the issuance of 10-year bonds by Wildhorse Corporation on Janu 2019, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statemen prepared once yearly. Year 1/1/2019 2020 2021 2019 $12,500 $13,305 12,500 2022 2023 2024 2025 2026 2027 Cash 2028 Amortization Schedule 12,500 12,500 12,500 12,500 12,500 12,500 12,500 Interest 12,500 13,401 13,510 13,631 13,767 13,919 14,089 14,280 14,493 14,731 Amount Unamortized $14,126 13,321 12,420 11,410 10,279 9,012 7,593 6,004 4,224 2,231 Carrying Value $ 110,874 111,679 112,580 113,590 114,721 115,988 117,407 118,996 120,776 122,769 125,000

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

View Policies Current Attempt in Progress The Bridgeport Company issued $390,000 of 11% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Bridgeport's journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) (b) (c)
On January 1
Subject:: accounting
The effectivę interest method of amortization is used. The Iterest is payable annually on December 31. The bonds Prepare journal entries for 2019. bonds have a 10% effective yield. Problem 20-4 (IAA) On January 1, 2019, Fancy Company acquired P8.000,000 12% bonds to be held as financial assets al amortized cost for P8,400,000 plus transaction cost of P198,400. terest is payable annually on December 31. The bonds mature on January 1, 2024. Required:
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.
please answer in text not image with all working thanks in advance Robert Company issued 1,200 $1000 face value bonds on January 1, 2018. The bonds have a stated rate of 9%, mature on December 31, 2027, and pay interest on June 30 and December 31 of each year. The bonds were issued at a price of $1,281,542 when the market rate of interest was 8%. • Build and present the the complete amortization table • Determine the interest expense Robert should recognize for 2018
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $310,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 10%, the bonds will issue at $283,405. Required: 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.) Change in Carrying Value Interest Carrying Value Date Cash Paid Expense 1/1/21 6/30/21 12/31/21
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?
Required information [The following information applies to the questions displayed below] On January 1, 2021, Eagle Company borrows $26,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $7,850, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Prepare an amortization table for this installment note. Note: Round all amounts to the nearest whole dollar. Payments Period Ending (A) Beginning (B) Debit Interest (C) Debit Notes Balance. Expense Payable Date 2021 2022 2023 2024 Total $ k (D) Credit Cash S 0 (E) Ending Balance
2
Question info is in the image
Need help questions 2 and 3.