Wildhorse Co. issued $6,720,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Wildhorse Co. closes its books annually on December 31. (a) Complete the following amortization schedule for the dates indicated. Use the effective-interest method. (Round answers to 0 decimal places, e.g. 5,275.) Date October 1, 2020 April 1, 2021. October 1, 2021 Cash Interest Expense Bond Discount. Carrying Amount of Bonds $6,201,076

Wildhorse Co. issued $6,720,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Wildhorse Co. closes its books annually on December 31. (a) Complete the following amortization schedule for the dates indicated. Use the effective-interest method. (Round answers to 0 decimal places, e.g. 5,275.) Date October 1, 2020 April 1, 2021. October 1, 2021 Cash Interest Expense Bond Discount. Carrying Amount of Bonds $6,201,076

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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(1).
On December 31, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on December 31, 2025. Interest is to be paid semi-annually on June 30 and December 31. The bonds were sold at a market value of $432,444 to yield 8% effective annual interest. Whitfield has a calendar year-end.Required:1. Complete the following amortization schedule for the dates indicated. Show to the second decimal place (dollars and cents). Use the effective-interest method.
Mcdonaugh Corporation issued $250,000 of 5%, 10-year bonds payable onJanuary 1, 2019. The market interest rate when the bonds were issued was 8%. Interest is paidsemiannually on January 1 and July 1. The first interest payment is July 1, 2019. Using theeffective-interest amortization method, how much interest expense will Mcdonaugh record onJuly 1, 2019? Use Excel to calculate the issue price.a. $4,976b. $7,961c. $1,711d. $10,000e. $6,250
The Blossom Company issued $260,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 98. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Blossom Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 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)Jan. 1, 2020(b)July 1, 2020(c)Dec. 31, 2020
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The Blossom Company issued $260,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 98.Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Blossom Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) choose a transaction date Jan. 1, 2020July 1, 2020Dec. 31, 2020 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount (b) choose a transaction date…
On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. A) $73,000. B) $82,000. C) $87,000. D) $89,000.
On January 1, 2023, Anthony Corporation issued $500,000 of 6%, 5 - year bonds at 99, with interest paid annually. Using the straightline amortization method, what is the carrying value of the bonds one year later on January 1, 2024? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.) A.$ $496,000 B. $501,000 C. $504,051 D.$ 495,000
The Martinez Company issued $230,000 of 12% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 103.Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Martinez Company records straight-line amortization semiannually.
Duval Co. issues four-year bonds with a $108,000 par value on January 1, 2019, at a price of $103,920. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.)
On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. answer is 87,000 how do you get there?
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