Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 7A, Problem 6PB
1.
To determine
Calculate the proceeds for the bond issue and the manner it would issuing the bonds affect the financial statements for G’s Gadgets.
2.
To determine
Prepare an amortization schedule for the first three years of the life of the bonds.
3.
To determine
Identify the amount of interest expenses related to issued bonds that G’s Gadgets would be reported on its income statement for the year ended December 31, 2015.
4.
To determine
Calculate the interest expense using the
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How do you solve portion B and C. I don't understand the calcuations.
Please give me answer
tELLiy, you must enter your ID number on the first sheet!
On January 1, 2020 Omsk Corporation issued
Bonds pay interest each July 1 and January 1.
150,000 of 5 % bonds, due in
17 years
12 % market rate of interest.
Assume
Requirements (Round to 0 decimals, Rounding errors do not matter):
1. Compute market price of bonds. Provide detailed computation. Use functions in Excel
2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation.
3. Prepare amortization schedule for first 5 years. Use formulas in Excel.
4. Prepare journal entry to record bond issue.
5. Prepare journal entry on July 1, 2020.
6. Prepare journal entry on December 31, 2020.
7. Prepare journal entry on January 1, 2021
Chapter 7A Solutions
Financial Accounting
Ch. 7A - Prob. 1YTCh. 7A - Suppose Action Company issues a 1,000, 10-year,...Ch. 7A - Suppose HPS Company issues a 1,000 face value,...Ch. 7A - Present value. (LO 8). Suppose you want to have...Ch. 7A - Present value. (LO 8). Able Company has offered to...Ch. 7A - Calculate payments using time value of money...Ch. 7A - Calculate payments using time value of money...Ch. 7A - Prob. 5PACh. 7A - Prob. 6PB
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