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Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of...
1. Merchant Company issued 10-year bonds on January 1. The 7% bonds have a face value...
1. Merchant Company issued 10-year bonds on January 1. The 7% bonds have a face value of $709,000 and pay interest every January 1 and July 1. The bonds were sold for $589,257 based on the market interest rate of 8%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dollar) of a.$23,570 b.$20,624 c.$28,360 d.$24,815 2. Franklin Corporation issues $94,000,...
McMillan Corporation issued $150,000, 12%, fifteen-year bonds on January 1, 2019, for $201,876 when the market interest...
McMillan Corporation issued $150,000, 12%, fifteen-year bonds on January 1, 2019, for $201,876 when the market interest rate was 8%. Interest is paid semiannually on January 1 and July 1. The corporation uses the effective interest method to amortize bond discounts and premiums. The total amount of bond interest expense recognized on July 1, 2019, would be closest to O A. $18,000 OB. $6,000 OC. $9,000 OD. $8,075
On July 1, 2019, Sugarland Company issued $2,000,000 face value of 10%, 10-year bonds at $1,770,602,...
On July 1, 2019, Sugarland Company issued $2,000,000 face value of 10%, 10-year bonds at $1,770,602, a price which implies an effective interest rate of 12%. Sugarland uses the effective-interest method to amortize bond premiums and discounts. These bonds pay interest semiannually on June 30 and December 31. Required: Compute the answers to the following questions: (a.) How much interest will Sugarland pay (in cash) every six months? (b.)What is the dollar amount of the premium or discount on these...
On January 1, Year 1, Hanover Corporation issued bonds with a $42,750 face value, a stated...
On January 1, Year 1, Hanover Corporation issued bonds with a $42,750 face value, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were issued at 97. Hanover uses the straight-line method to amortize bond discounts and premiums. Interest is payable in cash on December 31 each year. The journal entry used to record the issuance of the bond and the receipt of cash would be: (Round your answer to the nearest whole dollar...
On January 1 of the current year, Barton Corporation issued 6% bonds with a face value...
On January 1 of the current year, Barton Corporation issued 6% bonds with a face value of $87,000. The bonds are sold for $82,650. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is Oa. $435 Ob. $6,525 Oc. $2,610 Od. $6,090
(Please show work) Woodward Corporation issued $100,000, 10%, five-year bonds on January 1, 2019, for $108,110...
(Please show work) Woodward Corporation issued $100,000, 10%, five-year bonds on January 1, 2019, for $108,110 when the market interest rate was 8%. Interest is paid semiannually on January 1 and July 1. The corporation uses the effective-interest method to amortize bond discounts and premiums. The total amount of bond interest expense recognized on July 1, 2019, would be closest to answer: $4,324
On January 1, Year 1, Weller Company issued bonds with a $230,000 face value, a stated...
On January 1, Year 1, Weller
Company issued bonds with a $230,000 face value, a stated rate of
interest of 10.00%, and a 10-year term to maturity. Weller uses the
effective interest method to amortize bond discounts and premiums.
The market rate of interest on the date of issuance was 8.00%.
Interest is paid annually on December 31.
QUESTION 9 During Year 1, El Paso Company had the following changes in account balances The Accumulated Depreciation account had a beginning...
On January 1, 20X1 Shapiro and Sons, Inc. issued 9% bonds with a face value of...
On January 1, 20X1 Shapiro and Sons, Inc. issued 9% bonds with a face value of $700,000 at a discount. The bonds yield 10%, pay interest annually, and were sold for $656,992. Shapiro and Sons, Inc. uses the effective interest method for amortizing bond premiums and discounts. How much interest expense will Shapiro and Sons, Inc. report on its 20X1 Income Statement?
Calculator On January 1, Elias Corporation issued 12 % bonds with a face value of $52,000....
Calculator On January 1, Elias Corporation issued 12 % bonds with a face value of $52,000. The bonds are sold for $50,440. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a. $6,396 Ob. $1,560 Oc. $6,240 Od. $520
On January 1, Year 1, the Diamond Association issued bonds with a face value of $231,000,...
On January 1, Year 1, the Diamond Association issued bonds with a face value of $231,000, a stated rate of interest of 12 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 14 percent at the time the bonds were issued. The bonds sold for $206,902. Diamond used the effective interest rate method to amortize the bond discount. Required a. Determine the amount of the...
McMillan Corporation issued $150,000, 12%, fifteen-year bonds on January 1, 2019, for $201,876 when the market interest rate was 8%. Interest is paid semiannually on January 1 and July 1. The corporation uses the effective interest method to amortize bond discounts and premiums. The total amount of bond interest expense recognized on July 1, 2019, would be closest to O A. $18,000 OB. $6,000 OC. $9,000 OD. $8,075
On January 1 of the current year, Barton Corporation issued 6% bonds with a face value of $87,000. The bonds are sold for $82,650. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is Oa. $435 Ob. $6,525 Oc. $2,610 Od. $6,090
On January 1, Year 1, Weller
Company issued bonds with a $230,000 face value, a stated rate of
interest of 10.00%, and a 10-year term to maturity. Weller uses the
effective interest method to amortize bond discounts and premiums.
The market rate of interest on the date of issuance was 8.00%.
Interest is paid annually on December 31.
QUESTION 9 During Year 1, El Paso Company had the following changes in account balances The Accumulated Depreciation account had a beginning...
Calculator On January 1, Elias Corporation issued 12 % bonds with a face value of $52,000. The bonds are sold for $50,440. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a. $6,396 Ob. $1,560 Oc. $6,240 Od. $520
On January 1, Year 1, the Diamond Association issued bonds with a face value of $231,000, a stated rate of interest of 12 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 14 percent at the time the bonds were issued. The bonds sold for $206,902. Diamond used the effective interest rate method to amortize the bond discount. Required a. Determine the amount of the...
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