the second interest payment. January 31, 2034 the date the principal is repaid. What would be the entry to record the issuance of the bonds if they are not issued until March 1 (that is, between interest dates)? Under the original assumption that the bonds are issued February 1, 2024 How much would it cost Lok to pay off the bonds early (by repurchasing them from the open market) on August 1, 2030 if the market interest rate on that date is 6% ? Give the journal entry that would be required to account for the early repayment, and comment on the interpretation of any gain or loss that would be recorded. If Lok had to pay $3,000 in legal, accounting, and registration fees in connection with the issuance of the bonds, explain how Lok would account for those costs on the date of issue

the second interest payment. January 31, 2034 the date the principal is repaid. What would be the entry to record the issuance of the bonds if they are not issued until March 1 (that is, between interest dates)? Under the original assumption that the bonds are issued February 1, 2024 How much would it cost Lok to pay off the bonds early (by repurchasing them from the open market) on August 1, 2030 if the market interest rate on that date is 6% ? Give the journal entry that would be required to account for the early repayment, and comment on the interpretation of any gain or loss that would be recorded. If Lok had to pay $3,000 in legal, accounting, and registration fees in connection with the issuance of the bonds, explain how Lok would account for those costs on the date of issue

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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Assume that a bond is issued with the following characteristics: Date of bonds: January 1, 2023; maturity date: Dec. 31, 2027; face value: $200,000; Coupon interest rate: 10 percent paid semiannually; market interest rate: 12 percent; issue price: $185,280; bond discount is amortized using the effective interest method of amortization. What is the amount of bond discount amortization for the June 30, 2023, adjusting entry? A) $559 B) $1,117 C) $10,000 D) $11,117
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Subject :- Account
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