-
Suppose that ABC Co. were to issue a 5-year, $111,000 bond that had a coupon rate of 5% and paid interest annually under each of the following alternatives: (a) (b) (c) yield rate = 4%, assuming the issue price is $115,941.83. yield rate = 5%, assuming the issue price is $111.000. yield rate - 6%, assuming the issue price is $106,324.46. (a) Prepare the journal entries for both the issuance of the bond as well as the first interest payment...
-
Suppose that ABC Co. were to issue a 5-year, $148,000 bond that had a coupon rate of 5% and paid interest annually under each of the following alternatives: (a) (b) (C) yield rate = 4%, assuming the issue price is $154,589.11. yield rate = 5%, assuming the issue price is $148,000. yield rate = 6%, assuming the issue price is $141,765.94. (a) Prepare the journal entries for both the issuance of the bond as well as the first interest payment...
-
Suppose that ABC Co. were to issue a 5-year, $148,000 bond that
had a coupon rate of 5% and paid interest annually under each of
the following alternatives:
(a)
yield rate = 4%, assuming the issue price is $154,589.11.
(b)
yield rate = 5%, assuming the issue price is $148,000.
(c)
yield rate = 6%, assuming the issue price is $141,765.94.
(a)
Your answer is partially correct. Try again.
Prepare the journal entries for both the issuance of the bond...
-
Kingbird, Inc. issued $480,000, 596, 20-year bonds on January 1, 2019, at 101. Interest is payable annually on January 1. Kingbird uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Prepare the journal entry to record the accrual of interest and the premium amortization on December 31,2019....
-
On January 1, 2019, Wildhorse Co. issued $2,360,000 face value,
7%, 10-year bonds at $2,201,642. This price resulted in an
effective-interest rate of 8% on the bonds. Wildhorse uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on January 1.
Prepare the journal entry to record the issuance of the bonds
on January 1, 2019. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation...
-
please help me solve this question
Blossom Cars Co. issued $2.16 million of 5%, 5-year bonds on January 1, 2021. The bonds were dated January 1 and pay interest annually. The bonds are secured with real estate holdings. The market interest rate was 4% for these bonds. Blossom has a calendar year end. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 Calculate the...
-
On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year
bonds at face value. Interest is payable annually on January 1.
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2020
Prepare the journal entry to record the accrual of interest on
December 31, 2020. (Credit account titles are
automatically indented when amount is entered....
-
On January 1, Wildhorse Co. issued $366,000, 7%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent...
-
Exercise 10-9 On January 1, 2017, Forrester Company issued $351,500, 9%, 5-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1 (b) Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when...
-
Sunland Company issued $535,000 of 5-year, 5% bonds at 96 on January 1, 2020. The bonds pay interest annually. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Compute the total cost of borrowing for these bonds. Total cost of borrowingt SHOW LIST OF ACCOUNTS Prepare the journal entry to record the issuance of...
Suppose that ABC Co. were to issue a 5-year, $111,000 bond that had a coupon rate of 5% and paid interest annually under each of the following alternatives: (a) (b) (c) yield rate = 4%, assuming the issue price is $115,941.83. yield rate = 5%, assuming the issue price is $111.000. yield rate - 6%, assuming the issue price is $106,324.46. (a) Prepare the journal entries for both the issuance of the bond as well as the first interest payment...
Suppose that ABC Co. were to issue a 5-year, $148,000 bond that had a coupon rate of 5% and paid interest annually under each of the following alternatives: (a) (b) (C) yield rate = 4%, assuming the issue price is $154,589.11. yield rate = 5%, assuming the issue price is $148,000. yield rate = 6%, assuming the issue price is $141,765.94. (a) Prepare the journal entries for both the issuance of the bond as well as the first interest payment...
Suppose that ABC Co. were to issue a 5-year, $148,000 bond that
had a coupon rate of 5% and paid interest annually under each of
the following alternatives:
(a)
yield rate = 4%, assuming the issue price is $154,589.11.
(b)
yield rate = 5%, assuming the issue price is $148,000.
(c)
yield rate = 6%, assuming the issue price is $141,765.94.
(a)
Your answer is partially correct. Try again.
Prepare the journal entries for both the issuance of the bond...
Kingbird, Inc. issued $480,000, 596, 20-year bonds on January 1, 2019, at 101. Interest is payable annually on January 1. Kingbird uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Prepare the journal entry to record the accrual of interest and the premium amortization on December 31,2019....
On January 1, 2019, Wildhorse Co. issued $2,360,000 face value,
7%, 10-year bonds at $2,201,642. This price resulted in an
effective-interest rate of 8% on the bonds. Wildhorse uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on January 1.
Prepare the journal entry to record the issuance of the bonds
on January 1, 2019. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation...
please help me solve this question
Blossom Cars Co. issued $2.16 million of 5%, 5-year bonds on January 1, 2021. The bonds were dated January 1 and pay interest annually. The bonds are secured with real estate holdings. The market interest rate was 4% for these bonds. Blossom has a calendar year end. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 Calculate the...
On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year
bonds at face value. Interest is payable annually on January 1.
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2020
Prepare the journal entry to record the accrual of interest on
December 31, 2020. (Credit account titles are
automatically indented when amount is entered....
On January 1, Wildhorse Co. issued $366,000, 7%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent...
Exercise 10-9 On January 1, 2017, Forrester Company issued $351,500, 9%, 5-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1 (b) Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when...
Sunland Company issued $535,000 of 5-year, 5% bonds at 96 on January 1, 2020. The bonds pay interest annually. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Compute the total cost of borrowing for these bonds. Total cost of borrowingt SHOW LIST OF ACCOUNTS Prepare the journal entry to record the issuance of...