Homework Answers
| Bond carrying value | 9523 |
| X Effective interest rate | 7% |
| Interest expense for the year ended Dec 31,2019 | 667 |
| Option D $667 is correct |
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On January 1, 2019, Tonika Company issued a six-year, $10,000, 6% bond. The interest is payable...
On January 1, 2019, Tonika Company issued a seven-year, $10,000, 8% bond. The interest is payable...
On January 1, 2019, Tonika Company issued a seven-year, $10,000, 8% bond. The interest is payable annually each December 31. The issue price was $9,496 based on an 9% effective interest rate. Tonika uses the effective-interest amortization method. The interest expense on the income statement for the year ended December 31, 2019 is closest to: Multiple Choice $855. $972. o $800. o o $760.
On January 1, 2019, Tonika Company issued a five-year, $10,000, 8% bond. The interest is payable...
On January 1, 2019, Tonika Company issued a five-year, $10,000, 8% bond. The interest is payable annually each December 31. The issue price was $9,611 based on an 9% effective interest rate. Tonika uses the effective-interest amortization method. The book value of the bonds as of December 31, 2019 is closest to: Multiple Choice Ο $9,676. Ο $8,811. Ο $65. Ο $9,546.
17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is payable annually eac...
17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is payable annually each December 31. The issue price was $9,683 based on an 10% effective interest rate. Tonika uses the effective-interest amortization method. The 2020 interest expense is closest to: a) $900. b) $871 c) $878. d) $975.
17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is...
17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is payable annually each December 31. The issue price was $9,683 based on an 10% effective interest rate. Tonika uses the effective-interest amortization method. The 2020 interest expense is closest to: a) $900. b) $871. c) $878. d) $975.
On January 1, 2019, Tonika Company issued a four-year, $12,100,7% bond. The interest is payable annually...
On January 1, 2019, Tonika Company issued a four-year, $12,100,7% bond. The interest is payable annually each December 31. The issue price was $11,518 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense? Multiple Choice 1,052 Interest expense Bond discount Cash 205 847 847 Interest expense Cash Interest expense Bond discount Cash 805 42
On January 1, 2019, a company issued $400,900 of 10-year, 12% bonds. The interest is payable...
On January 1, 2019, a company issued $400,900 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $415,403 based on a 10% market interest rate. The effective-interest method of amortization is used. Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2019? Multiple Choice 0 $20,770. $20,770. 0 $24,054. $24,054. o $20,045. o $24,924.
On January 1, 2019, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2019.
On January 1, 2019, Knorr Corporation issued $1,400,000 of 6%,
5-year bonds dated January 1, 2019. The bonds pay interest annually
on December 31. The bonds were issued to yield 7%. Bond issue costs
associated with the bonds totaled $22,107.40.Required:Prepare the journal entries to record the following:January 1, 2019Sold the bonds at an effective rate of 7%December 31, 2019First interest payment using the effective interest methodDecember 31, 2019Amortization of bond issue costs using the straight-line
methodDecember 31, 2020Second interest payment...
On January 1, Melrose Manufacturing issues a 5-year bond with a face value of $10,000 and...
On January 1, Melrose Manufacturing issues a 5-year bond with a face value of $10,000 and a stated interest rate of 6%. The market interest rate is 4% The issue price of the bond was $10,976. Using the effective interest method of amortization, the interest expense for the first year ended December 31 would be Multiple Choice o $439.04. o $600.00. o $400.00. o $658.56.
On January 1, your company issues a 5-year bond with a face value of $10,000 and...
On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 9% The market interest rate is 7%. The issue price of the bond was $11,046. Using the effective-interest method of amortization, the interest expense for the first year ended December 31 would be: Multiple Choice $700.00. $900.00. $994.14 $773.22
On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016
On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled 522,107.40. Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 7% December 31, 2016 First interest payment using the effective interest method December 31, 2016 Amortization of bond issue costs using the straight-line method December 31,...
On January 1, 2019, Tonika Company issued a seven-year, $10,000, 8% bond. The interest is payable annually each December 31. The issue price was $9,496 based on an 9% effective interest rate. Tonika uses the effective-interest amortization method. The interest expense on the income statement for the year ended December 31, 2019 is closest to: Multiple Choice $855. $972. o $800. o o $760.
On January 1, 2019, Tonika Company issued a five-year, $10,000, 8% bond. The interest is payable annually each December 31. The issue price was $9,611 based on an 9% effective interest rate. Tonika uses the effective-interest amortization method. The book value of the bonds as of December 31, 2019 is closest to: Multiple Choice Ο $9,676. Ο $8,811. Ο $65. Ο $9,546.
17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is payable annually each December 31. The issue price was $9,683 based on an 10% effective interest rate. Tonika uses the effective-interest amortization method. The 2020 interest expense is closest to: a) $900. b) $871 c) $878. d) $975.
17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is payable annually each December 31. The issue price was $9,683 based on an 10% effective interest rate. Tonika uses the effective-interest amortization method. The 2020 interest expense is closest to: a) $900. b) $871. c) $878. d) $975.
On January 1, 2019, Tonika Company issued a four-year, $12,100,7% bond. The interest is payable annually each December 31. The issue price was $11,518 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense? Multiple Choice 1,052 Interest expense Bond discount Cash 205 847 847 Interest expense Cash Interest expense Bond discount Cash 805 42
On January 1, 2019, a company issued $400,900 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $415,403 based on a 10% market interest rate. The effective-interest method of amortization is used. Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2019? Multiple Choice 0 $20,770. $20,770. 0 $24,054. $24,054. o $20,045. o $24,924.
On January 1, 2019, Knorr Corporation issued $1,400,000 of 6%,
5-year bonds dated January 1, 2019. The bonds pay interest annually
on December 31. The bonds were issued to yield 7%. Bond issue costs
associated with the bonds totaled $22,107.40.Required:Prepare the journal entries to record the following:January 1, 2019Sold the bonds at an effective rate of 7%December 31, 2019First interest payment using the effective interest methodDecember 31, 2019Amortization of bond issue costs using the straight-line
methodDecember 31, 2020Second interest payment...
On January 1, Melrose Manufacturing issues a 5-year bond with a face value of $10,000 and a stated interest rate of 6%. The market interest rate is 4% The issue price of the bond was $10,976. Using the effective interest method of amortization, the interest expense for the first year ended December 31 would be Multiple Choice o $439.04. o $600.00. o $400.00. o $658.56.
On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 9% The market interest rate is 7%. The issue price of the bond was $11,046. Using the effective-interest method of amortization, the interest expense for the first year ended December 31 would be: Multiple Choice $700.00. $900.00. $994.14 $773.22
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