Homework Answers
When the market rate is less than the stated interest rate, the bonds are issued at premium.
The answer is The bonds are issued at premium.
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Interest = $200,000 * 6.5% = $13,000
Cash flows from operating activities = $0
The answer is $13,000 and zero.
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Which of the following describes what happens when bonds are issued when the market interest rate...
1. On January 1, Year 1, Price Co. issued $393,000 of five-year, 6 percent bonds at...
1. On January 1, Year 1, Price Co. issued $393,000 of five-year,
6 percent bonds at 95. Interest is payable annually on December 31.
The discount is amortized using the straight-line method.
Required
Prepare the journal entries to record the bond transactions for
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- Record the entry for issuance of bonds
-Record the entry for recognizing interest expense on Dec. 31,
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-Record the entry for recognizing interest expense on Dec. 31,
Year...
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1. On January 1, Year 1, Price Co. issued $393,000 of five-year,
6 percent bonds at 95. Interest is payable annually on December 31.
The discount is amortized using the straight-line method.
Required
Prepare the journal entries to record the bond transactions for
Year 1 and Year 2.
- Record the entry for issuance of bonds
-Record the entry for recognizing interest expense on Dec. 31,
Year 1
-Record the entry for recognizing interest expense on Dec. 31,
Year...
Victor Company issued bonds with a $725,000 face value and a 6% stated rate of interest on January 1 Year 1. The bonds carried a 5-year! term and sold for 95. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year, The amount of interest expense appearing on the December 31, Year 3 income statement would be: Multiple Choice Ο Ο Ο Ο Riley Company borrowed $34,000 on April 1. Year 1 from the...
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What’s the answers
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