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Help Save On March 1, 2020, Quinto Mining Inc. issued a $540,000, 8%, three-year bond. Interest...
Swanson Corporation issued $7,400,000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2033. Swanson's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at April 1, 2013, to record the issuance of the bonds. (Omit the "S" sign in your response.) Date General Journal Debit Credit...
Swanson Corporation issued $7,100,000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2033. Swanson's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at April 1, 2013, to record the issuance of the bonds. (Omit the "$" sign in your response.) General Journal Debit Credit Date...
On June 1, 2020, JetCom Inventors Inc. issued a $610,000 6%, three-year bond. Interest is to be paid semiannually beginning December 1, 2020 Required: a. Calculate the issue price of the bond assuming a market interest rate of 7%. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Issue price of the bond b. Using the effective interest method, prepare an amortization schedule. (Do not round Intermediate calculations. Round the final answers to the nearest...
Exercise 10-8 Straight-Line: Recording bond issuance and premium amortization LO P3 Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $95,000 and semiannual interest payments. (0) Semiannual Period-End January 1, "issuance June 30, first payment December 31, second payment Unamortized Premium $8,011 7,210 carrying Value $ 103,011 102,210 101,409 (2) Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1...
E10-11 Recording Bond Issue and First Interest Payment with Premium (Effective-Interest Amortization) LO10-3 On January 1, 2018, Bochini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were dated January 1, 2018, had a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Use Table 9C.1, Table 9C.2 Required: 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event,...
On January 1, 2013, Loop de Loop Raceway issued 550 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $535,288. Loop de Loop uses the straight-line bond amortization method Required: 1. Prepare a bond amortization schedule. Changes During the Period Period...
On January 1, 2013, Loop de Loop Raceway issued 700 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $681,631. Loop de Loop uses the straight-line bond amortization method. Required: 1. Prepare a bond amortization schedule. Changes During the Period Period...
Exercise 10-8 Straight-Line: Recording bond issuance and premium amortization LO P3 Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $97,000 and semiannual interest payments. Semiannual Period-End Unamortized Premium Unamortized P Carrying Value January 1, Issuance $8,051 $105.051 June 30, first payment 7.246 104,246 December 31, second payment 6,441 103,441 (O) (1) Use the above straight-line bond amortization table and prepare journal entries for the following (a) The issuance of bonds on...
On January 1, Innovative Solutions, Inc., issued $210,000 in bonds at face value. The bonds have a stated interest rate of 7 percent. The bonds mature in 10 years and pay interest once per year on December 31 Required: 1,2 & 3. Prepare the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 102 (if...
Banjo Education Corp. issued a 4% $100.000 bond that pays interest semiannually each June 30 and December 31 The date of issuance was January 1, 2017 The bonds mature after four years. The market interest rate was 6% Banjo Education Corp's year-end is December 31. (Use TABLE 14A1 and TABLE 14A2) Required: Preparation Component: 1. Calculate the issue price of the bond. (Use appropriate factor(s) from the tables provided. Round the final answer to the nearest whole dollar.) Issue price...