Xerox Company Issues $ 2,000,000 9% 2 yr bonds at 97 Interest is payable on July 1st and January 1st, 2014. Straight-line method is used for amorization. Optional Work Area Face, Price, Carry Value > $ 2,000,000 97 Bond Rate> 9% Discount/Premium> # Periods > 20 Prepare the bond amortization schedule. (Round to the nearest dollar.) A 1,940,000 60,000 B C D E % X Face /2 A+ (-) D D/#periods Amount of D-C Face +(-) D Period # Date Cash Interest Payment Interest Expense Prem/Disc Un-Amortized Prem/(Disc) Bond Carry Value Amortizatn Issue Date >> (60,000) 1,940,000 Yr1 July 1 90,000 75,000 (15,000) (45,000) 1,955,000 Yr1 Dec 2 90,000 75,000 (15,000) (30,000) 1,970,000 Yr2 July 3 90,000 75,000 (15,000) (15,000) 1,985,000 Yr2 Dec 4 90,000 75,000 (15,000) 2,000,000 JE1: Prepare journal entry for sale of the bonds January 1, year1. Include explanation with all information required for someone to verify your amortization table.
Xerox Company Issues $ 2,000,000 9% 2 yr bonds at 97 Interest is payable on July 1st and January 1st, 2014. Straight-line method is used for amorization. Optional Work Area Face, Price, Carry Value > $ 2,000,000 97 Bond Rate> 9% Discount/Premium> # Periods > 20 Prepare the bond amortization schedule. (Round to the nearest dollar.) A 1,940,000 60,000 B C D E % X Face /2 A+ (-) D D/#periods Amount of D-C Face +(-) D Period # Date Cash Interest Payment Interest Expense Prem/Disc Un-Amortized Prem/(Disc) Bond Carry Value Amortizatn Issue Date >> (60,000) 1,940,000 Yr1 July 1 90,000 75,000 (15,000) (45,000) 1,955,000 Yr1 Dec 2 90,000 75,000 (15,000) (30,000) 1,970,000 Yr2 July 3 90,000 75,000 (15,000) (15,000) 1,985,000 Yr2 Dec 4 90,000 75,000 (15,000) 2,000,000 JE1: Prepare journal entry for sale of the bonds January 1, year1. Include explanation with all information required for someone to verify your amortization table.
Chemistry
10th Edition
ISBN:9781305957404
Author:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste
Publisher:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste
Chapter1: Chemical Foundations
Section: Chapter Questions
Problem 1RQ: Define and explain the differences between the following terms. a. law and theory b. theory and...
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Transcribed Image Text:Xerox Company Issues
$
2,000,000
9%
2 yr bonds at
97
Interest is payable on July 1st and January 1st, 2014. Straight-line method is used for amorization.
Optional Work
Area
Face, Price, Carry Value > $ 2,000,000
97
Bond Rate>
9% Discount/Premium>
# Periods >
20
Prepare the bond amortization schedule.
(Round to the nearest dollar.)
A
1,940,000
60,000
B
C
D
E
% X Face /2
A+ (-) D
D/#periods
Amount of
D-C
Face +(-) D
Period # Date
Cash Interest
Payment
Interest Expense
Prem/Disc
Un-Amortized
Prem/(Disc)
Bond Carry Value
Amortizatn
Issue Date >>
(60,000)
1,940,000
Yr1 July
1
90,000
75,000
(15,000)
(45,000)
1,955,000
Yr1 Dec
2
90,000
75,000
(15,000)
(30,000)
1,970,000
Yr2 July
3
90,000
75,000
(15,000)
(15,000)
1,985,000
Yr2 Dec
4
90,000
75,000
(15,000)
2,000,000
JE1: Prepare journal entry for sale of the bonds January 1, year1. Include explanation with all information required for
someone to verify your amortization table.
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