Homework Answers
Calculate following
| Case A | Case B | Case C | |
| Face value of bonds | 5000000 | 5000000 | 5000000 |
| Semiannual cash interest | 5000000*8%*6/12 = 200000 | 200000 | 200000 |
| Bond selling price | 5000000 | 50000*98/100 = 4900000 | 5100000 |
| Bond issue date | January 1,2020 | January 1,2020 | January 1,2020 |
Add Answer to:
Rowe Corporation authorized 50,000 of 8% (cash interest payable semiannually) 10-year bonds. The bonds were dated...
Champion Oil issued 10-year bonds dated January 1, 2020. The bonds were issued on March 1,...
Champion Oil issued 10-year bonds dated January 1, 2020. The bonds were issued on March 1, 2020, with accrued interest. Interest was payable on the bonds on January 1 and July 1 of each year. The company's year-end was December 31. Champion followed ASPE and chose to use the straight-line amortization method. On May 31, 2023, Champion retired a portion of the bond issue, paying any accrued interest at that date. Addtional information pertaining to the bond issue follows: Face...
Burris Corporation is authorized to issue $940,000 of 6% bonds. Interest on the bonds is payable...
Burris Corporation is authorized to issue $940,000 of 6% bonds. Interest on the bonds is payable semiannually, the bonds are dated January 1, 2019, and are due December 31, 2023 Required: Prepare the journal entries to record the following: a April 1, 2019 June 30, 2019 December 31, 2019 Sold the bonds at par plus acero interest First interest payment Second interest payment c. General Journal Prepare the journal entries to record the following: Sold the bonds at par plus...
Legacy issues $710,000 of 8.0%, four year bonds dated January 1, 2017, that pay interest semiannually...
Legacy issues $710,000 of 8.0%, four year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $621,812 and their market rate is 12% at the issue date. 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Legacy issues $710,000 of...
On January 1, 2020, the Maxell Company purchased P400,00 of 6% term bonds. The bonds are dated January 1, 2020, and the interest is payable semiannually on June 30 and December 31. At the time the bonds were purchased the market interest rate was 8%. T
On January 1, 2020, the Maxell Company purchased P400,00 of 6% term bonds. The bonds are dated January 1, 2020, and the interest is payable semiannually on June 30 and December 31. At the time the bonds were purchased the market interest rate was 8%. The bonds mature on December 31, 2030. Maxell Company uses the effective interest method of amortization.Instruction: Determine the following:issue price of the bonds on January 1, 2020total amount of interest revenue for 2020book value of...
Hillside issues $2,900,000 of 9%, 15 year bonds dated January 1, 2019, that pay interest semiannually...
Hillside issues $2,900,000 of 9%, 15 year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,549,590 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2a) For each semiannual period, complete the table below to calculate the cash payment 2/b) For each semiannual period, complete the table below to calculate the straight-line premium amortization 21c) For each semiannual period, complete the...
Romero issues $3,400 of 10%, 10 year bonds dated January 1, 2019, that pay interest semiannually...
Romero issues $3,400 of 10%, 10 year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $4,192,932. 1. Prepare the January 1 journal entry to record the bonds issuance. 2. For each semiannual period, compute (a) the cash payment, (b) the straight line discount amortization, and (c) the bond interest expense. 3. Determine the total bond interest expense to be recognized over the bonds' life. 4....
Kiki Inc., which closes its books on December 31, is authorized to issue $600,000 of 8%,...
Kiki Inc., which closes its books on December 31, is authorized to issue $600,000 of 8%, 10-year bonds dated January 1, 2017, with interest payments on January 1. REQUIRED: Present general journal entries to record the events listed below, assuming the bonds were sold at face on January 1, 2017 1. The bond issue. 2. Accrual of the bond interest at December 31. 3. Payment of the first semiannual period’s interest 4. Retirement of the bonds at maturity
Oriole Corporation issues $520,000 of 9% bonds, due in 10 years, with interest payable semiannually. At...
Oriole Corporation issues $520,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds $ On January 2, 2015, Novak Corporation issued $1,100,000 of 10% bonds at...
P10-7B. Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest Cheney, Inc., which closes its...
P10-7B. Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest Cheney, Inc., which closes its books on December 31, is authorized to issue $800,000 of six percent, 20-year bonds dated March 1, with interest payments on September 1 and March 1. Required Prepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on July 1. a. The bond issuance. b. Payment of the semiannual interest on September 1 c. Accrual...
Hillside issues $2,800,000 of 8%, 15-year bonds dated January 1, 2018, that pay interest semiannually on...
Hillside issues $2,800,000 of 8%, 15-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,427,190. Required: 1. Prepare the January 1, 2018, journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the...
Champion Oil issued 10-year bonds dated January 1, 2020. The bonds were issued on March 1, 2020, with accrued interest. Interest was payable on the bonds on January 1 and July 1 of each year. The company's year-end was December 31. Champion followed ASPE and chose to use the straight-line amortization method. On May 31, 2023, Champion retired a portion of the bond issue, paying any accrued interest at that date. Addtional information pertaining to the bond issue follows: Face...
Burris Corporation is authorized to issue $940,000 of 6% bonds. Interest on the bonds is payable semiannually, the bonds are dated January 1, 2019, and are due December 31, 2023 Required: Prepare the journal entries to record the following: a April 1, 2019 June 30, 2019 December 31, 2019 Sold the bonds at par plus acero interest First interest payment Second interest payment c. General Journal Prepare the journal entries to record the following: Sold the bonds at par plus...
Legacy issues $710,000 of 8.0%, four year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $621,812 and their market rate is 12% at the issue date. 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Legacy issues $710,000 of...
Hillside issues $2,900,000 of 9%, 15 year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,549,590 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2a) For each semiannual period, complete the table below to calculate the cash payment 2/b) For each semiannual period, complete the table below to calculate the straight-line premium amortization 21c) For each semiannual period, complete the...
Oriole Corporation issues $520,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds $ On January 2, 2015, Novak Corporation issued $1,100,000 of 10% bonds at...
P10-7B. Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest Cheney, Inc., which closes its books on December 31, is authorized to issue $800,000 of six percent, 20-year bonds dated March 1, with interest payments on September 1 and March 1. Required Prepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on July 1. a. The bond issuance. b. Payment of the semiannual interest on September 1 c. Accrual...
Most questions answered within 3 hours.
-
Suppose that XX is a random variable with mean 16 and standard
deviation 5 . Also...
asked 14 minutes ago -
Calculate the number density of argon gas at a temperature of
24C and a pressure of...
asked 3 hours ago -
Alternative
Classification
How to Estimate
Probabilities from Data? ( For continuous Attributes)
And How to generate...
asked 3 hours ago -
An explosion breaks a 20.0-kg object into three parts. The
object is initially moving at a...
asked 4 hours ago -
Calculate the approximate number of residues of Rubisco, which
is involved in carbon fixation in plants,...
asked 5 hours ago -
Other decisions about scientific claims can have a much broader
impact.ENERGYarrow-10x10.png, environment, health, security - all...
asked 6 hours ago -
I need to write a research paper and work cited about this
topic: The United States...
asked 6 hours ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 6 hours ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 7 hours ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 7 hours ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 7 hours ago -
Project management question:
Name 3 different types of resources (hint: humans are one
type)
asked 7 hours ago