Homework Answers
rate positively..
| Ans 19 | Correct answer is option: | ||||||||
| Mortgage | |||||||||
| If the borrowing is secured by the asset it is called Mortgage | |||||||||
| Ans 20 | correct answer is option | ||||||||
| Debit premium on bond payable $5000, debit interest expenses , credit cash $200000 | |||||||||
| Exp: cash paid -= 4mil*10%/2 = 200000 | |||||||||
| Ans 21 | correct answer is option | ||||||||
| Face amount - that is, the contractual amount of the bond issue. | |||||||||
| This is because if the interest rate = Coupon rate therefore bond will be issued at par. | |||||||||
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Question 19 4 pts When a note is secured by an asset of the corporation, it...
please note it is the second interest payment using the wffective interest method of amortization. On...
please note it is the second interest payment using the
wffective interest method of amortization.
On January 1, a company issues bonds dated January 1 with a par value of $400,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $383,793. The journal entry to record the second interest payment using the effective interest method of...
PROBLEM Builders Corp issues $200,000 of its 10%, five-year bonds that pay interest semiannually when the...
PROBLEM Builders Corp issues $200,000 of its 10%, five-year bonds that pay interest semiannually when the market rate is 10% on January 1, 2017 Required: 1 Journalize the issuance of the bond. Date Accounts and Explanation 2. Journalize Builders Corp's first semiannual interest payment. Date Accounts and Explanation Debit Credit Carrying Amount 3. Complete Builders Corp's Bonds Payable Amortization Schedule below. Cash Interest Discount/Premium Paid Expense Amortized 01/01/2017 06/30/2017 12/31/2017 $200,000 2 Page
On January 1, a company issues bonds dated January 1 with a par value of $220,000....
On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9% and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the first interest payment using the effective interest method of amortization is (Rounded to the nearest dollar.) Multiple Choice Debt Bond Interest Expense 39157, de...
On January 1, a company issues bonds dated January 1 with a par value of $220,000....
On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the issuance of the bond is: Multiple Choice C Debit Cash $228,930; credit Bonds Payable $228,930 Debit Cash $228,930; credit Premium on Bonds Payable $8,930...
On July 1 XYZ, corporation entered into a $100,000 5-year 4.5% installment note with its local...
On July 1 XYZ, corporation entered into a $100,000 5-year 4.5% installment note with its local bank. The company must make monthly payments of T$20,226. The journal entry to record the note payable is: Debit Cash $100,000; Credit Interest Expense $226; credit Notes Payable $98,774. No entry is required. Debit Cash $98,774; Debit Interest Expense $226; credit Notes Payable $100,000. Debit Cash $100,000; credit Discount on Bonds Payable $100,000. Debit Cash $100,000; credit Note Payable $100,000.
23) Zorn Inc. makes a sale for $450. The company is required to collect sales taxes...
23) Zorn Inc. makes a sale for $450. The company is required to collect sales taxes amounting to 10%. When recording this sale, Zorn will A) debit Cash for $450. B) debit Sales Tax Payable for $45. C) debit Sales Tax Expense for $45. D) credit Sales Revenue for $495 E) credit Sales Revenue for $450. 24) On August 1, 2019, Paige's Dance Company borrows $45,000 from Adirondack Bank on a 9-month, 6% note. The adjusting journal entry to accrue...
On January 1, a company issues bonds dated January 1 with a par value of $320,000....
On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 5 years. The contract rate is 7% , and interest is paid semiannually on June 30 and December 31. The market rate is 6 % and the bonds are sold for $333,650. The journal entry to record the first interest payment using the effective interest method of amortization is: (Rounded to the nearest dollar.) Multiple Choice Debit Bond Interest Expense...
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate...
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 5.50 percent, so the total proceeds from the bond issue were $101,347. Methodical uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare...
14 Ch. 9 8 10 90 min.) Help Save & Ex Submit On January 1, a...
14 Ch. 9 8 10 90 min.) Help Save & Ex Submit On January 1, a company issued and sold a $391,000,7%, 10 year bond payable and received proceeds of $386.000. Interesi payable each Jurve 30 and December 31. The company uses the straight line method to amortize the discount. The journal entry to record the first interest payment is Multiple Choice Debit Bond Interest Expense $13,685 Credit Cash $13.685 Debit Dond Interest Expense 5130 Credit Cash $13689 Credit Discount...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
please note it is the second interest payment using the
wffective interest method of amortization.
On January 1, a company issues bonds dated January 1 with a par value of $400,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $383,793. The journal entry to record the second interest payment using the effective interest method of...
PROBLEM Builders Corp issues $200,000 of its 10%, five-year bonds that pay interest semiannually when the market rate is 10% on January 1, 2017 Required: 1 Journalize the issuance of the bond. Date Accounts and Explanation 2. Journalize Builders Corp's first semiannual interest payment. Date Accounts and Explanation Debit Credit Carrying Amount 3. Complete Builders Corp's Bonds Payable Amortization Schedule below. Cash Interest Discount/Premium Paid Expense Amortized 01/01/2017 06/30/2017 12/31/2017 $200,000 2 Page
On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9% and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the first interest payment using the effective interest method of amortization is (Rounded to the nearest dollar.) Multiple Choice Debt Bond Interest Expense 39157, de...
On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the issuance of the bond is: Multiple Choice C Debit Cash $228,930; credit Bonds Payable $228,930 Debit Cash $228,930; credit Premium on Bonds Payable $8,930...
23) Zorn Inc. makes a sale for $450. The company is required to collect sales taxes amounting to 10%. When recording this sale, Zorn will A) debit Cash for $450. B) debit Sales Tax Payable for $45. C) debit Sales Tax Expense for $45. D) credit Sales Revenue for $495 E) credit Sales Revenue for $450. 24) On August 1, 2019, Paige's Dance Company borrows $45,000 from Adirondack Bank on a 9-month, 6% note. The adjusting journal entry to accrue...
On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 5 years. The contract rate is 7% , and interest is paid semiannually on June 30 and December 31. The market rate is 6 % and the bonds are sold for $333,650. The journal entry to record the first interest payment using the effective interest method of amortization is: (Rounded to the nearest dollar.) Multiple Choice Debit Bond Interest Expense...
14 Ch. 9 8 10 90 min.) Help Save & Ex Submit On January 1, a company issued and sold a $391,000,7%, 10 year bond payable and received proceeds of $386.000. Interesi payable each Jurve 30 and December 31. The company uses the straight line method to amortize the discount. The journal entry to record the first interest payment is Multiple Choice Debit Bond Interest Expense $13,685 Credit Cash $13.685 Debit Dond Interest Expense 5130 Credit Cash $13689 Credit Discount...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
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