1) | |||||||
Date | Cash | interest | Decrease | Carrying | |||
paid | expense | in CV | value | ||||
3.50% | 3% | ||||||
1/1/2021 | 644,632 | ||||||
6/30/2021 | 21000 | 19339 | 1661 | 642971 | |||
12/31/2021 | 21,000 | 19289 | 1711 | 641260 | |||
6/30/2022 | 21,000 | 19238 | 1762 | 639498 | |||
12/31/2022 | 21,000 | 19185 | 1815 | 637683 | |||
6/30/2023 | 21,000 | 19130 | 1870 | 635813 | |||
12/31/2023 | 21,000 | 19074 | 1926 | 633887 | |||
10744 | |||||||
2) | Date | General Journal | Debit | Credit | |||
1/1/2021 | Cash | 644,632 | |||||
premium on bonds payable | 44,632 | ||||||
Bonds payable | 600,000 | ||||||
6/30/2021 | interest expense | 19339 | |||||
premium on bonds payable | 1661 | ||||||
Cash | 21000 | ||||||
12/31/2021 | interest expense | 19289 | |||||
premium on bonds payable | 1711 | ||||||
Cash | 21,000 | ||||||
E9-12 On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years,...
E9-11 On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Required: Assuming the market interest rate on the issue date is 8%, the bonds will issue at $559,229. 1. Complete the first three rows of an amortization schedule. 2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.
On January 1, 2021, White Water issues $510,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 6%, the bonds will issue at $547,940. Exercise 9-12A Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.)
On January 1, 2021, White Water issues $510,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 6%, the bonds will issue at $547,940. Exercise 9-12A Part 2 2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular...
On January 1, 2021, Splash City issues $330,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $307,577. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (Round your intermediate and final answers to the nearest whole dollar.) 1 January...
On January 1, 2021, Universe of Fun issues $890,000, 9% bonds that mature in 20 years. The market interest rate for bonds of similar risk and maturity is 10%, and the bonds issue for $813,642. Interest is paid semiannually on June 30 and December 31. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 1/1/2021...
On January 1, 2021, White Water issues $460,000 of 5% bonds, due in 15 years, with interest payable annually on December 31 each year. Assuming the market interest rate on the issue date is 6%, the bonds will issue at $415,326. Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 12/31/2021 12/31/2022
Super Splash issues $910,000, 7% bonds on January 1, 2021, that mature in 10 years. The market interest rate for bonds of similar risk and maturity is 6%, and the bonds issue for $977,693. Interest is paid semiannually on June 30 and December 31. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
On January 1, 2021, Splash City issues $450,000 of 7% bonds, due
in 10 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 8%, the
bonds will issue at $419,423.
Required: 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 1/1/21 6/30/21 12/31/21...
On January 1, 2021, a company issues $740,000 of 8% bonds, due in nine years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $695,008. Required: 1. Fill in the blanks in the amortization schedule below: (Round your answers to the nearest dollar amount. Enter all amounts as positive values.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value...
On January 1, 2021, Splash City issues $470,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 10%, the bonds will issue at $429,678. Required: 1. Complete the first three rows of an amortization table.