Journal entry | ||||||||||
Date | General Journal | Debit | Credit | |||||||
1/1/2017 | Cash | 3,456,448 | ||||||||
discount on bonds | 543,552 | |||||||||
bonds payable | 4,000,000 | |||||||||
2-a) | par maturity value | Annual rate | / | year | semi annual cash payment | |||||
4,000,000 | * | 6% | 6./12 | 120000 | ||||||
semi annual | Straight line | |||||||||
2-b) | par value | bonds price | Discount | periods | disc amortization | |||||
4,000,000 | - | 3,456,448 | = | 543,552 | / | 30 | = | 18118 | ||
2-c) | Semi annual cash | Discount | bond interest expense | |||||||
payment | amortization | |||||||||
120,000 | + | 18118 | = | 138,118 | ||||||
3) | total bond interest expense over life of bonds | |||||||||
amount repaid | ||||||||||
30 | payments of | 120,000 | 3600000 | |||||||
par value ant maturity | 4,000,000 | |||||||||
total repaid | 7600000 | |||||||||
less amount borrowed | 3,456,448 | |||||||||
total bond interest expense. | 4,143,552 | |||||||||
(note bond interest expense may differ slightly due to rounding) | ||||||||||
4) | unamort | Carrying | ||||||||
period | discount | value | ||||||||
1/1/2017 | 543,552 | 3,456,448 | ||||||||
6/30/2017 | 525,434 | 3,474,566 | ||||||||
12/31/2017 | 507,315 | 3,492,685 | ||||||||
6/30/2018 | 489,197 | 3,510,803 | ||||||||
12/31/2018 | 471,078 | 3,528,922 | ||||||||
5) | ||||||||||
Date | General Journal | Debit | Credit | |||||||
6/30/2016 | interest expense | 138,118 | ||||||||
Discount on bonds payable | 18,118 | |||||||||
cash | 120,000 | |||||||||
31/12/2016 | ||||||||||
interest expense | 138,118 | |||||||||
discount on bonds payable | 18,118 | |||||||||
cash | 120,000 | |||||||||
hillside issues Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $4,000,000 of...
Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $1,100,000 of 9%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $950,524. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' Issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the...
Saved Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $1,700,000 of 8%, 15-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $1,468,990 Required: 1. Prepare the January 1, 2018, journal entry to record the bonds' issuance 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2[b) For each semiannual period, complete the table below to calculate...
Problem 10-3A Straight-Line: Amortization of bond premium LO P1, P3 Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1 2018, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $4,895 980 ON Required: 1. Prepare the January 1, 2018, journal entry to record the bonds' Issuance 2 For each semiannual period, complete the table below to calculate the cash payment 21 For each semiannual period complete the table below to...
Problem 10-1A Straight-Line: Amortization of bond discount LO P2 Hillside issues $2,900,000 of 9%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,505,923. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount...
Problem 10-1A Straight-Line: Amortization of bond discount LO P2 Hillside issues $2,600,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,246,690. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount...
Saved Problem 10-3A Straight-Line: Amortization of bond premium LO P1, P3 Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $1,713,594 Required: 1. Prepare the January 1, 2018 journal entry to record the bonds issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate...
Problem 10-1A Straight-Line: Amortization of bond discount LO P2 (Required 4) A newconnect.mheducation.com M M San Anton BUSA-7-09-21614.20... MHE Reader Ch 10: Homework Student - MISAC https://prodssb.mtsac Problem 10-TA what Ch 10: Homework Submitted 19.6/20 Total points awarded Help Exit Problem 10-1A Straight-Line: Amortization of bond discount LO P2 Hillside issues $1,200,000 of 8%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,036,935. 4.6/5...
Problem 10-1A Straight-Line: Amortization of bond discount LO P2 Topic: Click here to ask chapturstplated queste Ch 10: Homework Ch 10: Homework Saved Help Save & Exit Submit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the...
Required information Problem 10-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 The following information applies to the questions displayed below] Legacy issues $70o,000 of 7.5% four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $643,419 and their mearket rate is 10 % at the issue date Problem 10-5A Part 1 Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. View...
Hillside issues $4,000,000 of 6% , 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. 2d For each semiannual period, complete the table below to calculate the cash payment. 2( For each semiannual period, complete the table below to calculate the straight-line discount amortization. 20 For each semiannual period, complete...