Kingbird Inc., a private company following ASPE, is having difficulty meeting its working capital requirements. As...
Kingbird Inc., a private company following ASPE, is having
difficulty meeting its working capital requirements. As a result,
on January 1, 2020, the company sold bonds with a face value of
$1.05 million, receiving $850,000 in cash. The bonds have an
interest rate of 6% and mature on January 1, 2022. Interest is
payable semi-annually on January 1 and July 1.
Set up a schedule of interest expense and discount amortization
under the straight-line method.
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Kingbird Inc., a private company following ASPE, is having
difficulty meeting its working capital requirements. As...
Teal Mountain Inc., a private company following ASPE, is having difficulty meeting its working capital requirements....
Teal Mountain Inc., a private company following ASPE, is having difficulty meeting its working capital requirements. As a result, on January 1, 2020, the company sold bonds with a face value of $2.05 million, receiving $1,850,000 in cash. The bonds have an interest rate of 12% and mature on January 1, 2022. Interest is payable semi-annually on January 1 and July 1. Set up a schedule of interest expense and discount amortization under the straight-line method. Credit Interest Payable Schedule...
Question 8 Your answer is partially correct. Try again. Tamarisk Inc., a private company following ASPE,...
Question 8 Your answer is partially correct. Try again. Tamarisk Inc., a private company following ASPE, is having difficulty meeting its working capital requirements. As a result, on January 1, 2020, the company sold bonds with a face value of $2 million, receiving $1,480,000 in cash. The bonds have an interest rate of 6% and mature on January 1, 2022. Interest is payable semi-annually on January 1 and July 1. Set up a schedule of interest expense and discount amortization...
On January 1, 2020, Kingbird Company purchased $420,000, 10% bonds of Aguirre Co. for $389,086. The...
On January 1, 2020, Kingbird Company purchased $420,000, 10% bonds of Aguirre Co. for $389,086. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Kingbird Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Kingbird Company sold the bonds for $390,653 after receiving interest to meet its liquidity needs. Schedule of Interest Revenue and Bond Discount Amortization—Effective-Interest Method Bonds...
The unadjusted trial balance of Kingbird, Inc., a private company following ASPE, at December 31, 2020,...
The unadjusted trial balance of Kingbird, Inc., a private company following ASPE, at December 31, 2020, is as follows: Credit Cash Debit $17,690 109,600 $3,380 61,300 Accounts receivable Allowance for doubtful accounts Inventory Prepaid insurance Bond investment at amortized cost Land 4,692 48,000 30,000 150,100 11,890 32,400 5,400 16,600 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Goodwill Accounts payable Bonds payable (20-year, 7%) Common shares Retained earnings Sales revenue Rent revenue Rent expense Supplies expense Purchases 101,900 180,000 120,600 48,847 180,000...
Novak Company sells 10% bonds having a maturity value of $2,100.000 for $1.948.607. The bonds are...
Novak Company sells 10% bonds having a maturity value of $2,100.000 for $1.948.607. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is pay able annually on January 1 Set up a schedule of interest expense and discount amortization under the straight line method. (Round answers to decimal places a 38.548.) Schedule of Discount Amortization Straight-Line Method Interest Discount Amortized Year Paid Carrying Amount of Bonds Jan 1, 2017 Jan. 1. 2018 Jan 1, 2019 Jan....
The unadjusted trial balance of Kingbird, Inc., a private company following ASPE, at December 31, 2020,...
The unadjusted trial balance of Kingbird, Inc., a private company following ASPE, at December 31, 2020, is as follows: Credit Cash Debit $17,690 109,600 $3,380 61,300 Accounts receivable Allowance for doubtful accounts Inventory Prepaid insurance Bond investment at amortized cost Land 4,692 48,000 30,000 150,100 11,890 32,400 5,400 16,600 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Goodwill Accounts payable Bonds payable (20-year, 7%) Common shares Retained earnings Sales revenue Rent revenue Rent expense Supplies expense Purchases 101,900 180,000 120,600 48,847 180,000...
Riverbed Company sells 10% bonds having a maturity value of $2,550,000 for $2,366,166. The bonds are...
Riverbed Company sells 10% bonds having a maturity value of
$2,550,000 for $2,366,166. The bonds are dated January 1, 2017, and
mature January 1, 2022. Interest is payable annually on January
1.
Set up a schedule of interest expense and discount amortization
under the straight-line method. (Round answers to 0
decimal places, e.g. 38,548.)
Schedule of Discount Amortization
Straight-Line Method
Year
Cash
Paid
Interest
Expense
Discount
Amortized
Carrying
Amount of Bonds
Jan. 1, 2017
$
$
$
$
Jan. 1,...
Exercise 14-6Indigo Company sells 10% bonds having a maturity value of$2,250,000 for $2,087,794. The...
Exercise 14-6Indigo Company sells 10% bonds having a maturity value of $2,250,000 for $2,087,794. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.)Schedule of Discount AmortizationStraight-Line MethodYearCashPaidInterestExpenseDiscountAmortizedCarryingAmount of BondsJan. 1, 2017$$$$Jan. 1, 2018Jan. 1, 2019Jan. 1, 2020Jan. 1, 2021Jan. 1, 2022
Blue Company sells 10% bonds having a maturity value of $1,450,000 for $1,345,467. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determin...
Blue Company sells 10% bonds having a maturity value of $1,450,000 for $1,345,467. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) LINK TO TEXT Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Schedule...
(Amortization Schedule Straight-Line) Devon Harris Company sells 10% bonds having a maturity value o$2,000,000 for $1,855,816
E 14-6 L01) (Amortization Schedule Straight-Line) Devon Harris Company sells 10% bonds having a maturity value o$2,000,000 for $1,855,816. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1 Instructions Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to the nearest cent.)E 14-7 L01) (Amortization Schedule-Effective-Interest) Assume the same information as E14-6.Instructions Set up a schedule of interest expense and discount amortization under the effective-interest method. (Hint:...
Teal Mountain Inc., a private company following ASPE, is having difficulty meeting its working capital requirements. As a result, on January 1, 2020, the company sold bonds with a face value of $2.05 million, receiving $1,850,000 in cash. The bonds have an interest rate of 12% and mature on January 1, 2022. Interest is payable semi-annually on January 1 and July 1. Set up a schedule of interest expense and discount amortization under the straight-line method. Credit Interest Payable Schedule...
Question 8 Your answer is partially correct. Try again. Tamarisk Inc., a private company following ASPE, is having difficulty meeting its working capital requirements. As a result, on January 1, 2020, the company sold bonds with a face value of $2 million, receiving $1,480,000 in cash. The bonds have an interest rate of 6% and mature on January 1, 2022. Interest is payable semi-annually on January 1 and July 1. Set up a schedule of interest expense and discount amortization...
The unadjusted trial balance of Kingbird, Inc., a private company following ASPE, at December 31, 2020, is as follows: Credit Cash Debit $17,690 109,600 $3,380 61,300 Accounts receivable Allowance for doubtful accounts Inventory Prepaid insurance Bond investment at amortized cost Land 4,692 48,000 30,000 150,100 11,890 32,400 5,400 16,600 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Goodwill Accounts payable Bonds payable (20-year, 7%) Common shares Retained earnings Sales revenue Rent revenue Rent expense Supplies expense Purchases 101,900 180,000 120,600 48,847 180,000...
Novak Company sells 10% bonds having a maturity value of $2,100.000 for $1.948.607. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is pay able annually on January 1 Set up a schedule of interest expense and discount amortization under the straight line method. (Round answers to decimal places a 38.548.) Schedule of Discount Amortization Straight-Line Method Interest Discount Amortized Year Paid Carrying Amount of Bonds Jan 1, 2017 Jan. 1. 2018 Jan 1, 2019 Jan....
The unadjusted trial balance of Kingbird, Inc., a private company following ASPE, at December 31, 2020, is as follows: Credit Cash Debit $17,690 109,600 $3,380 61,300 Accounts receivable Allowance for doubtful accounts Inventory Prepaid insurance Bond investment at amortized cost Land 4,692 48,000 30,000 150,100 11,890 32,400 5,400 16,600 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Goodwill Accounts payable Bonds payable (20-year, 7%) Common shares Retained earnings Sales revenue Rent revenue Rent expense Supplies expense Purchases 101,900 180,000 120,600 48,847 180,000...
Riverbed Company sells 10% bonds having a maturity value of
$2,550,000 for $2,366,166. The bonds are dated January 1, 2017, and
mature January 1, 2022. Interest is payable annually on January
1.
Set up a schedule of interest expense and discount amortization
under the straight-line method. (Round answers to 0
decimal places, e.g. 38,548.)
Schedule of Discount Amortization
Straight-Line Method
Year
Cash
Paid
Interest
Expense
Discount
Amortized
Carrying
Amount of Bonds
Jan. 1, 2017
$
$
$
$
Jan. 1,...
Blue Company sells 10% bonds having a maturity value of $1,450,000 for $1,345,467. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) LINK TO TEXT Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Schedule...
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