Homework Answers
2) Journal entry
| Date | account and explanation | Debit | credit |
| Mar 1 | Cash | 714000 | |
| Bonds payable | 700000 | ||
| Premium on bonds payable | 14000 | ||
| Sep 1 | Interest expense | 27300 | |
| Premium on bonds payable (14000/20) | 700 | ||
| Cash (700000*4%) | 28000 | ||
| Dec 31 | Interest expense | 18200 | |
| Premium on bonds payable (14000/10*4/12) | 4667 | ||
| Interest payable (700000*8%*4/12) | 18667 | ||
| Mar 1 | Interest payable | 18667 | |
| Interest expense | 9100 | ||
| Premium on bonds payable | 2333 | ||
| Cash | 30100 | ||
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as are sold at 102 have a face ate of 8%. Interest is paid semi- 2)...
question 14-4 P10 LO 14.3 face value b Umption of Effective Interest Rate On June 30,...
question 14-4
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On January 1, 2018, Baltimore Company issued $200,000 face value, 7%, 10-year bonds at 102. Interest...
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E10-11 and E10-12
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question 14-4
P10 LO 14.3 face value b Umption of Effective Interest Rate On June 30, 2017 face value bonds for S761,150.96. On December 31, 2019, Gaston $734,645.28. The bonds were dated January 1, 2019, pay 30, and are due December 31, 2026. E UF the bonds and debt issuance costs Kate On June 30, 2019, Gaston Corporation sold $800,000 of 11% er 31, 2019, Gaston sold $700,000 of this same bond issue for nuary 1, 2019, pay interest semiannually...
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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.
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total proceeds from the bond issue were $681,631. Loop uses the
straight-line bond amortization method and adjusts for any rounding
errors when recording interest in the final year.
Required:
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