Homework Answers
The answer is $ 370 gain.
The following entry summarizes the bond redemption transaction.
| DATE | PARTICULARS | DEBIT | CREDIT |
| 12/31/2021 | Bond Payable | $ 200,000 | |
| To Discount on Bond Payable | $ 3,630 | ||
| To Gain on Sale of Bond | $ 370 | ||
| To Cash | $ 196,000 |
The bonds payable would be debited for the face value of the bond.
The remaining discount was calculated by subtracting the original bond discount by the two periods of amortization expired prior to the sale.
The difference between the amount paid, the remaining balance of the discount, and the face value of the bond is the gain.
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Tony Hawk's Ad d bonds on my 2007 H an harte the formation schedule omincerty Interest...
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the...
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 Interest Increase in Carrying Carrying Cash Paid Expense Value Value $194,758 $7,000 $7,790 $790 195,548 7,000 7,822 822 196, 370 7,000 855 197,225 7,000 7,889 198, 114 7,000 7,925 199,039 7,000 7,961 200,000 7,855 THA issued the bonds for Multiple Choice $200,000 ОО $194,758 a $242.000
apters 7-9 Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has...
apters 7-9 Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity Interest Expense Increase in Carrying Value $ Date Cash Paid 01/01/2021 86/30/2021 $7,698 12/31/2021 7,899 06/30/2022 7,898 12/31/20227,000 06/30/2023 7,000 12/31/28237 ,808 7,790 7,822 7,855 7.889 7,925 7,961 $790 822 855 889 925 961 Carrying Value $ 194,758 195.548 196,370 197,225 198,114 199,039 200,000 THA issued the bonds for: Multiple Choice $200.000 loooo $194758 $242.000...
35) Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the fo...
35) Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Increase in Carrying Carrying Value Interest Date Cash Paid Value Expense 01/01/2021 S 194,7518 195,548 06/30/2021S 7,000 S 7,790 7,822 7,855 7,889 7,925 7,961 S 790 822 855 889 12/31/2021 7,000 7,000 7,000 7,000 7,000 196,370 197,225 198,114 06/30/2022 12/31/2022 925 06/30/2023 199,039 200,000 12/31/2023 961 THA issued the bonds for: A) S194,758 B) $242,000 C)...
DUH WU Disc X2QCQC G Dis 10 Tony Hawk's Adventure (THA) issued calable bonds on January...
DUH WU Disc X2QCQC G Dis 10 Tony Hawk's Adventure (THA) issued calable bonds on January 1, 202L THA's accountant has projected the following amortization schedule from iss maturity: Cash Paid Interest Expense Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $24,665 $22,200 22,200 22,200 22,200 22,200 22,200 24,838 25,023 25, 220 25,432 25,658 $2,465 2,638 2,823 3,020 3,232 3,458 Carrying Value $352,364 354,829 357,467 360,290 363,310 366,542 370,000 THA issued the bonds for THA issued...
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2018. THA's accountant has projected the...
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2018. THA's accountant has projected the following amortization schedule from issuance until maturity: Cash Paid Carrying Value Increase in Interest Date Expense Carrying Value $194,758 1/1/2018 $790 $7,000 $7,790 195,548 6/30/2018 7,000 12/31/2018 7,822 196,370 822 7,000 7,855 197,225 6/30/2019 855 7,889 889 12/31/2019 7,000 198,114 7,000 7,000 7,925 199,039 6/30/2020 925 200,000 12/31/2020 7,961 961 The THA bonds have a life of: 6 years. Cannot be determined from the...
Prepare anamon schedule that GODNO s h e 72/2354 r-0.036 Por n=81 Stml Periods A semiannual...
Prepare anamon schedule that GODNO s h e 72/2354 r-0.036 Por n=81 Stml Periods A semiannual interest Pred-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 22- 06/30/2023 12/31/2023 06/30/2024 12/31/2024 SCD20278 TODO20359 16 DOO 20uu 2, 35620 STODO 22,527 06417 16000 2016 A542- COD020 70 12707 Salt 140DD20) bol 2 361 54190, 1 18000 20900 2 200 000 Iyy,000 164627 Total 4. Prepare the joumal entry to record interest on June 30, 2021. 11 Jun 30, 21 5 & 6. What is...
Exercise 14-9 (Algo) Issuance of bonds; effective interest; amortization schedule; financial statement effects [LO14-2] When Patey...
Exercise 14-9 (Algo) Issuance of bonds; effective interest;
amortization schedule; financial statement effects [LO14-2]
When Patey Pontoons issued 4% bonds on January 1, 2021, with a
face amount of $520,000, the market yield for bonds of similar risk
and maturity was 5%. The bonds mature December 31, 2024 (4 years).
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use...
Given the information below, which bond(s) will be issued at a discount? Stated Rate of Return...
Given the information below, which bond(s) will be issued at a discount? Stated Rate of Return Market Rate of Return Bond 1 7% 5% Bond 2 8% 8% Bond 3 12% 14% Bond 4 9% 11% Bond 3. Bond 4. Bonds 3 and 4 Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity Interest Expense Increase in value Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021...
Ellis Company issues 8.0%, five-year bonds dated January 1, 2019, with a $600.000 par value. The bonds pay interest on...
Ellis Company issues 8.0%, five-year bonds dated January 1, 2019, with a $600.000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $651,181. The annual market rate is 6% on the issue date. Required: 1. Complete the below table to calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds life. 3. Prepare the joumal entries to record the first two...
Problem 10-9AB Effective Interest: Amortization of bond premium LO P6 Ellis Company issues 9.0%, five-year bonds...
Problem 10-9AB Effective Interest: Amortization of bond premium LO P6 Ellis Company issues 9.0%, five-year bonds dated January 1, 2019, with a $480,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $499.483. The annual market rate is 8% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2. Prepare an effective interest amortization table for the bonds' life. 3. Prepare the journal...
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 Interest Increase in Carrying Carrying Cash Paid Expense Value Value $194,758 $7,000 $7,790 $790 195,548 7,000 7,822 822 196, 370 7,000 855 197,225 7,000 7,889 198, 114 7,000 7,925 199,039 7,000 7,961 200,000 7,855 THA issued the bonds for Multiple Choice $200,000 ОО $194,758 a $242.000
apters 7-9 Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity Interest Expense Increase in Carrying Value $ Date Cash Paid 01/01/2021 86/30/2021 $7,698 12/31/2021 7,899 06/30/2022 7,898 12/31/20227,000 06/30/2023 7,000 12/31/28237 ,808 7,790 7,822 7,855 7.889 7,925 7,961 $790 822 855 889 925 961 Carrying Value $ 194,758 195.548 196,370 197,225 198,114 199,039 200,000 THA issued the bonds for: Multiple Choice $200.000 loooo $194758 $242.000...
35) Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Increase in Carrying Carrying Value Interest Date Cash Paid Value Expense 01/01/2021 S 194,7518 195,548 06/30/2021S 7,000 S 7,790 7,822 7,855 7,889 7,925 7,961 S 790 822 855 889 12/31/2021 7,000 7,000 7,000 7,000 7,000 196,370 197,225 198,114 06/30/2022 12/31/2022 925 06/30/2023 199,039 200,000 12/31/2023 961 THA issued the bonds for: A) S194,758 B) $242,000 C)...
DUH WU Disc X2QCQC G Dis 10 Tony Hawk's Adventure (THA) issued calable bonds on January 1, 202L THA's accountant has projected the following amortization schedule from iss maturity: Cash Paid Interest Expense Increase in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 $24,665 $22,200 22,200 22,200 22,200 22,200 22,200 24,838 25,023 25, 220 25,432 25,658 $2,465 2,638 2,823 3,020 3,232 3,458 Carrying Value $352,364 354,829 357,467 360,290 363,310 366,542 370,000 THA issued the bonds for THA issued...
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2018. THA's accountant has projected the following amortization schedule from issuance until maturity: Cash Paid Carrying Value Increase in Interest Date Expense Carrying Value $194,758 1/1/2018 $790 $7,000 $7,790 195,548 6/30/2018 7,000 12/31/2018 7,822 196,370 822 7,000 7,855 197,225 6/30/2019 855 7,889 889 12/31/2019 7,000 198,114 7,000 7,000 7,925 199,039 6/30/2020 925 200,000 12/31/2020 7,961 961 The THA bonds have a life of: 6 years. Cannot be determined from the...
Prepare anamon schedule that GODNO s h e 72/2354 r-0.036 Por n=81 Stml Periods A semiannual interest Pred-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 22- 06/30/2023 12/31/2023 06/30/2024 12/31/2024 SCD20278 TODO20359 16 DOO 20uu 2, 35620 STODO 22,527 06417 16000 2016 A542- COD020 70 12707 Salt 140DD20) bol 2 361 54190, 1 18000 20900 2 200 000 Iyy,000 164627 Total 4. Prepare the joumal entry to record interest on June 30, 2021. 11 Jun 30, 21 5 & 6. What is...
Exercise 14-9 (Algo) Issuance of bonds; effective interest;
amortization schedule; financial statement effects [LO14-2]
When Patey Pontoons issued 4% bonds on January 1, 2021, with a
face amount of $520,000, the market yield for bonds of similar risk
and maturity was 5%. The bonds mature December 31, 2024 (4 years).
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use...
Given the information below, which bond(s) will be issued at a discount? Stated Rate of Return Market Rate of Return Bond 1 7% 5% Bond 2 8% 8% Bond 3 12% 14% Bond 4 9% 11% Bond 3. Bond 4. Bonds 3 and 4 Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity Interest Expense Increase in value Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021...
Ellis Company issues 8.0%, five-year bonds dated January 1, 2019, with a $600.000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $651,181. The annual market rate is 6% on the issue date. Required: 1. Complete the below table to calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds life. 3. Prepare the joumal entries to record the first two...
Problem 10-9AB Effective Interest: Amortization of bond premium LO P6 Ellis Company issues 9.0%, five-year bonds dated January 1, 2019, with a $480,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $499.483. The annual market rate is 8% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2. Prepare an effective interest amortization table for the bonds' life. 3. Prepare the journal...
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