Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Chapter 13, Problem 3EA
Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the
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Krystian Inc. issued 8-year bonds with a face value of $100,000 and a stated rate of 5%
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Krystian Inc. issued 12-year bonds with a face value of $110,000 and a stated rate of 5% when the market rate was 7%. Interest was paid semi-annually.
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Chapter 13 Solutions
Principles of Accounting Volume 1
Ch. 13 - An amortization table ________. A. breaks each...Ch. 13 - A debenture is ________. A. the interest paid on a...Ch. 13 - The principal of a bond is ________. A. the person...Ch. 13 - A convertible bond can be converted into ________....Ch. 13 - On January 1, a company issued a 5-year $100,000...Ch. 13 - On July 1, a company sells 8-year $250,000 bonds...Ch. 13 - On January 1 a company issues a $75,000 bond that...Ch. 13 - On October 1 a company sells a 3-year, $2,500,000...Ch. 13 - On April 1 a company sells a 5-year, $60,000 bond...Ch. 13 - The effective-interest method of bond amortization...
Ch. 13 - When a bond sells at a discount, the carrying...Ch. 13 - The International Financial Reporting Standards...Ch. 13 - The cash interest payment a corporation makes to...Ch. 13 - Whirlie Inc. issued $300,000 face value, 10% paid...Ch. 13 - Naval Inc. issued $200,000 face value bonds at a...Ch. 13 - Keys Inc. issued 100 bonds with a face value of...Ch. 13 - Huang Inc. issued 100 bonds with a face value of...Ch. 13 - OShea Inc. issued bonds at a face value of...Ch. 13 - Gingko Inc. issued bonds with a face value of...Ch. 13 - The difference between equity financing and debt...Ch. 13 - What is the difference between callable and...Ch. 13 - What is the difference between serial bonds and...Ch. 13 - What is a junk bond?Ch. 13 - How are savings bonds different from a corporate...Ch. 13 - What do you have to do to the interest rate and...Ch. 13 - An amortization table/schedule is created to...Ch. 13 - In the amortization table, how is the amortization...Ch. 13 - Does issuing a bond at a discount increase or...Ch. 13 - What kind of account is the Discount on Bonds...Ch. 13 - Why is the effective-interest method of...Ch. 13 - If there is neither a premium nor discount...Ch. 13 - When do you use the Bond Discount Account?Ch. 13 - A company issued bonds with a $100,000 face value,...Ch. 13 - A company issued $100,000, 5-year bonds, receiving...Ch. 13 - Does interest expense increase or decrease when a...Ch. 13 - Halep Inc. borrowed $30,000 from Davis Bank and...Ch. 13 - Beluga Inc. issued 10-year bonds with a face value...Ch. 13 - Krystian Inc. issued 10-year bonds with a face...Ch. 13 - On January 1, 2018, Wawatosa Inc. issued 5-year...Ch. 13 - Diana Inc. issued $100,000 of its 9%, 5-year bonds...Ch. 13 - Oak Branch Inc. issued $700,000 of 5%, 10-year...Ch. 13 - On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds...Ch. 13 - Medhurst Corporation issued $90,000 in bonds for...Ch. 13 - On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds...Ch. 13 - Pinetop Corporation issued $150,000 10-year bonds...Ch. 13 - Medhurst Corporation issued $90,000 in bonds for...Ch. 13 - Sharapovich Inc. borrowed $50,000 from Kerber Bank...Ch. 13 - Waylan Sisters Inc. issued 3-year bonds with a par...Ch. 13 - Smashing Cantaloupes Inc. issued 5-year bonds with...Ch. 13 - Chung Inc. issued $50,000 of 3-year bonds on...Ch. 13 - Haiku Inc. issued $600,000 of 10-year bonds with a...Ch. 13 - Waldron Inc. issued $400,000 bonds with a stated...Ch. 13 - Willoughby Inc. issued 100 bonds with a face value...Ch. 13 - Allante Corporate issued 50 bonds with a face...Ch. 13 - Roo Incorporated issued 50 bonds with a face value...Ch. 13 - Piedmont Corporation issued $200,000 of 10-year...Ch. 13 - Lunar Corporation issued $80,000 in bonds for...Ch. 13 - On January 1, 2018, King Inc. borrowed $150,000...Ch. 13 - On July 1, Somerset Inc. issued $200,000 of 10%,...Ch. 13 - Eli Inc. issued $100,000 of 8% annual, 5-year...Ch. 13 - Evie Inc. issued 50 bonds with a $1,000 face...Ch. 13 - Volunteer Inc. issued bonds with a $500,000 face...Ch. 13 - Aggies Inc. issued bonds with a $500,000 face...Ch. 13 - Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and...Ch. 13 - Charleston Inc. issued $200,000 bonds with a...Ch. 13 - Starmount Inc. sold bonds with a $50,000 face...Ch. 13 - Irving Inc. sold bonds with a $50,000, 10%...Ch. 13 - Dixon Inc. issued bonds with a $500,000 face...Ch. 13 - Edward Inc. issued bonds with a $500,000 face...Ch. 13 - Below is select information from two, independent...Ch. 13 - Assume you are a newly-hired accountant for a...
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- Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a maturity date in 30 years. At the time of issue, the market rate is 5%. а. Calculate the issue price of the bond. b. Record the journal entry for the issue of the bond С. Record the journal entry for the first interest payment d. How much interest is recorded on the income statement in Year 1? е. Record the journal entry for the final entry at the bond maturity date.arrow_forwardNorth Co. Issued bonds on July 1, 2018 worth $100,000 with a coupon rate of 10% and an effective interest rate of 8%. Interest is paid annually, every July 1, and bonds mature after 5 years. Required: PV of Bonds: Calculation PV of Principal and PV of Interest and give your explanation about your calculation! Make issuance journal and please explain about the journal! Amortization: Calculation Bond Amortization Table and explain the result! Make Interest adjustment, amortization journal, and explain about the journal! Make Interest payment journal, amortization, and explain about the journal! Journalize Redemption at maturity and explain about the journal!arrow_forwardHappy Hollow, LLC issues $50,000 bonds at 20% interest with quarterly interest payments. Bonds have a maturity date in 5 years. At the time of issue, the market rate is 16%. а. Calculate the issue price of the bond b. How much total interest does the bondholder receive over the life of the bond?arrow_forward
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