Compute bond proceeds, amortizing premium by interest method, and interest expenseWare Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $44,000,000 of 5-year, 13% bonds at a market(effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open thespreadsheet, perform the required analysis, and input your answers in the questions below.XOpen spreadsheetCompute the following:a. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar.b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to thenearest dollar.c. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round your answer tothe nearest dollar.d. The amount of the bond interest expense for the first year. Round your answer to the nearest dollar.

Determine the cash proceeds from sale of bonds :Interest rate is 13% Market rate is 10%As market…

Answered: Ware Co. produces and sells motorcycle…

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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10. Journal entry worksheet: 1. Record the bond issue. (Jan. 01, 2021)2. Record the first semiannual interest payment. (June 30, 2021)3. Record the second semiannual interest payment. (Dec. 31, 2021)thank you so much!
On the first day of its fiscal year, J Co. issued $1,000,000 of five-year, 8% bonds to finance the remodeling of an office building. Interest is payable semiannually. The bonds were issued at an effective interest rate of 11%, resulting in J Co. receiving cash of $886,935. Give the account(s) to be debited (1), the account(s) to be credited (2) , and the amounts to journalize the payment of the first semiannual interest payment. (Amortization of discount/premium is to be recorded annually.) All amounts are to be rounded to the nearest dollar. DATE DESCRIPTION PREF DEBIT CREDIT (1) ? (2) ? Group of answer choices Interest expense debited (1) $80,000; Cash credited (2) $80,000 Cash debited (1) $40,000; Interest expense credited (2) $40,000. Interest expense debited (1) $40,000; Cash credited (2) $40,000.
Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $930,000 of 25-year, 7% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the above selected transactions for the current year. Round your answers to whole number.
Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,501,000 of 20-year, 9% callable bonds on May 1, 20Y5, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions: 20Y5 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 20Y9 Nov. 1 Called the bond issue at 95, the rate provided in the bond indenture. (Omit entry for payment of interest.) If an amount box does not require an entry, leave it blank. Issued the bonds for cash at their face amount. 20Y5 May 1 Paid the interest on the bonds. 2015 Nov. 1 38 Called the bond issue at 95, the rate provided in the bond indenture. (Omit entry for payment of interest.) 20Y9 Nov. 1
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On January 1, the first day of its fiscal year, Jacinto Company issued $6,500,000 of six-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Jacinto Company receiving cash of $6,194,985. Required: a. Journalize the entries to record the following (refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.): 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount amortization, using…
Show Me How Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $25,500,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannua at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $23,666,949. eBook a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1 2. 3. b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $23,666,949 rather than for the face…
Please help answering questions 1-12.
now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false < 3. eBook If an amount box does not require an entry, leave it blank. 1. 2. Show Me How On the first day of its fiscal year, Chin Company issued $26,800,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $24,873,499. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Check My Work A 000 000 000 000 000 000 b. Determine the amount of the bond interest expense for the first…
Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $40,000,000 of 10- year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $42, 601,480. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method. b The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight - line method. 3. Determine the total interest expense for 20Y1. 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? 5. Compute the price of $42, 601, 480 received for the…
please answer #4. prepare journal entries please show work
Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $32,900,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $37,000,084. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, If an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. Feedback ►Check My Work 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. Feedback ►Check My Work b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. Feedback ►Check My Work 3. Determine…

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