HL Corporation issued $600,000 of 8% bonds on October 1, 2018, due on October 1, 2023....
HL Corporation issued $600,000 of 8% bonds on October 1, 2018, due on October 1, 2023. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. HL Corporation closes its books annually on December 31.
Selling price of the bond = PV of principals + PV of interest payment =
Required:
-
Complete the following amortization schedule for the dates indicated. (Round all answers to the nearest dollar.) Use the effective interest method.
B. Prepare the adjusting entry for December 31, 2019. Use the effective interest method.
|
Date |
Description |
Debit |
Credit |
|
12/31/2018 |
|||
C. Prepare the entry for April 1, 2020. Use the effective interest method
| Date | Description | Debit | Credit |
C. Compute the interest expense to be reported in the income statement for the year ended December 31, 2019
Interest expense for year 2019 =
Homework Answers
A. Please find attached amortization schedule:
B&C. Journal Entries and Interest Expense for the year 2019:
Add Answer to:
HL Corporation issued $600,000 of 8% bonds on October 1, 2018,
due on October 1, 2023....
BU Curriculum Corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1,...
BU Curriculum Corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1, 2023. The interest is to be paid on Nov. 1 and May. 1. The bonds were sold to yield 10% effective annual interest. BU Curriculum Corporation closes its books annually on December 31. (a) Complete an amortization schedule for the above bond (for all periods) in a similar format as below. (Round all answers to the nearest dollar.) Use the effective interest method. Date...
BU Curriculum Corporation issued $900,000 of 8% on November 1, 2018, due on November 1, 2023....
BU Curriculum Corporation issued $900,000 of 8% on November 1, 2018, due on November 1, 2023. The interest is to be paid twice a year on Nov. 1 and May 1. The bonds were sold to yield 10% effective annual interest. BU Curriculum Corporation closes its books annually on December 31. Date Credit Cash Debit Interest Expense Credit Bond Discount Carrying Amount of Bonds Nov. 1, 2018 May. 1, 2019 (continue schedule using excel) Complete an amortization schedule for...
BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1,...
BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1, 2023. The interest is to be paid twice a year on Nov. 1 and May 1. The bonds were sold to yield 10% effective annual interest. BU curriculum corporation closes its books annually on December 31. A. Complete an amortization schedule for the above bond (for all periods) in a similar format as below. (round all answers to nearest dollar.) Use the effective interest...
CV= 5,536,696 22. Grove Corporation issued $6,000,000 of 8% bonds on October 1, 2020, due on...
CV=
5,536,696
22. Grove Corporation issued $6,000,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Grove Corporation closes its books annually on December 31 (fiscal year end). Instructions: (10 + 5 + 5 = 18 points) (a) Prepare the amortization schedule showing entries up to second interest payment using the effective-interest...
On October 1, 2018, Spooner Corporation issued $720,000 of 10-year, 6% bonds at 100. Interest is...
On October 1, 2018, Spooner Corporation issued $720,000 of 10-year, 6% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Spooner's year end is December 31 and the company records adjusting entries annually. (a) Prepare journal entries to record the following: (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. The issue of the bonds on October 1, 2018. 2....
Question 4 On October 1, 2018, Spooner Corporation issued $720,000 of 10-year, 6% bonds at 100....
Question 4 On October 1, 2018, Spooner Corporation issued $720,000 of 10-year, 6% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Spooner's year end is December 31 and the company records adjusting entries annually. (a) (b) Identify what amounts, if any, would be reported as a current liability and non-current liability with respect to the bond and bond interest accounts on December 31, 2018. (Round answers to the nearest whole dollar, e.g. 5,275) Spooner Corporation...
Question y View Policies Current Attempt in Progress interest. Grove Corpo Grove Corporation issued $4,000,000 of...
Question y View Policies Current Attempt in Progress interest. Grove Corpo Grove Corporation issued $4,000,000 of x bondson October 1, 2017, due on October 1,2022. The interest is to be paid twice a year on April 1 and October 1. The band were sold to yield 10% effective doses its books annually on December 31 Complete the following amortization schedule for the dates indicated. Use the effective interest methodundan to decid es 52753 Date Credit Cash Debit nterest Expense Credit...
BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1,...
BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1, 2023. The interest is to be paid twice a year on Nov. 1 and May 1. The bonds were sold to yield 10% effective annual interest. BU curriculum corporation closes its books annually on December 31. A.) Compute the interest expense to be reported in the income statement for the year ended December 31, 2018 and December 31, 2019 B.) Complete an amortization schedule...
Exercise 10-12 On October 1, 2018, Spooner Corporation issued $660,000 of 10-year, 6% bonds at 100....
Exercise 10-12 On October 1, 2018, Spooner Corporation issued $660,000 of 10-year, 6% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Spooner's year end is December 31 and the company records adjusting entries annually. Prepare journal entries to record the following: (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. The issue of the bonds on October 1, 2018....
On January 1, 2018, Irik Corporation issued $2,550,000 face value, 7%, 10-year bonds at $2.378,893. This...
On January 1, 2018, Irik Corporation issued $2,550,000 face value, 7%, 10-year bonds at $2.378,893. This price resulted in an effective- interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Prepare the journal entry to record the issue of the bonds on January 1, 2018. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Jan. 1, 2018 Prepare an amortization table through...
CV=
5,536,696
22. Grove Corporation issued $6,000,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Grove Corporation closes its books annually on December 31 (fiscal year end). Instructions: (10 + 5 + 5 = 18 points) (a) Prepare the amortization schedule showing entries up to second interest payment using the effective-interest...
On October 1, 2018, Spooner Corporation issued $720,000 of 10-year, 6% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Spooner's year end is December 31 and the company records adjusting entries annually. (a) Prepare journal entries to record the following: (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. The issue of the bonds on October 1, 2018. 2....
Question 4 On October 1, 2018, Spooner Corporation issued $720,000 of 10-year, 6% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Spooner's year end is December 31 and the company records adjusting entries annually. (a) (b) Identify what amounts, if any, would be reported as a current liability and non-current liability with respect to the bond and bond interest accounts on December 31, 2018. (Round answers to the nearest whole dollar, e.g. 5,275) Spooner Corporation...
Question y View Policies Current Attempt in Progress interest. Grove Corpo Grove Corporation issued $4,000,000 of x bondson October 1, 2017, due on October 1,2022. The interest is to be paid twice a year on April 1 and October 1. The band were sold to yield 10% effective doses its books annually on December 31 Complete the following amortization schedule for the dates indicated. Use the effective interest methodundan to decid es 52753 Date Credit Cash Debit nterest Expense Credit...
Exercise 10-12 On October 1, 2018, Spooner Corporation issued $660,000 of 10-year, 6% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Spooner's year end is December 31 and the company records adjusting entries annually. Prepare journal entries to record the following: (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. The issue of the bonds on October 1, 2018....
On January 1, 2018, Irik Corporation issued $2,550,000 face value, 7%, 10-year bonds at $2.378,893. This price resulted in an effective- interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Prepare the journal entry to record the issue of the bonds on January 1, 2018. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Jan. 1, 2018 Prepare an amortization table through...
Most questions answered within 3 hours.
-
What mechanisms Drive speciation??
(I.e. what was Dawins theory on the orgin of species, and how...
asked 58 minutes ago -
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 1 hour ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 3 hours ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 3 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 5 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 5 hours ago -
In a study of the gas phase decomposition of sulfuryl chloride
at 600 K SO2Cl2(g)SO2(g) +...
asked 5 hours ago -
75 g of 2-propanol (C3H8O) and 25 g of pentane are mixed in a
200 mL...
asked 5 hours ago -
The 2800-turn coil in a dc motor has an area per turn of 1.1 ×
10-2...
asked 5 hours ago -
Draw a combinational logic circuit diagram with a symbol inside
the box for two I/P of...
asked 6 hours ago -
The cliché we use quite a lot in finance is: there is a need to
maximize...
asked 6 hours ago -
In class we discussed the addition of HCl to alpha pinene. Would
you expect one or...
asked 6 hours ago