Homework Answers
| Date | Accounts title & explanation | Debit | Credit | |||||
| cash | 95,233 | |||||||
| discount on bonds payable | 4,767 | |||||||
| bonds payable | 100,000 | |||||||
| b) | 100,000*12% | |||||||
| 12000 | ||||||||
| c) | 6000 | |||||||
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On
the day the bonds were dated, Willow Corp. issued 12% bonds having
a face value...
Why would bonds ever sell at a premium? Stated Rate = Market Rate Stated Rate >...
Why would bonds ever sell at a premium? Stated Rate = Market Rate Stated Rate > Market Rate Stated Rate < Market Rate QUESTION 2 Why would bonds ever sell at a discount? Stated Rate = Market Rate Stated Rate > Market Rate Stated Rate < Market Rate QUESTION 3 At what amount do bonds sell for if the Stated Rate is equal to the Market Rate? QUESTION 4 $500,000, 10%, 20 year bonds sell at 102.These bonds are selling...
Willow Creek Manufacturing, Inc. issued $7,000,000 face value of bonds at 99 on January 1, 2019....
Willow Creek Manufacturing, Inc. issued $7,000,000 face value of bonds at 99 on January 1, 2019. The bonds are dated January 1, 2019, pay interest semi-annually at 6% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On January 1, 2024, $4,200,000 of the bonds are called at 101. 1. The cash paid by Willow Creek Manufacturing when the bonds are redeemed would be... 2. The gain or loss on...
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Flounder Corp. issued 1,500 9%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense.
EA9. LO 13.3 On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face...
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EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a...
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On February 1,2021, Fox Corp. issued 9%bonds dated February 1,2021, with a face amount of $290000....
On February 1,2021, Fox Corp. issued 9%bonds dated
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On February 1, 2021, Fox Corporation issued 9% bonds dated February 1, 2021. with a face amount of $290,000. The bonds sold for $265,121 and mature in 20 years. The effective interest rate for these bonds was 10%. Interest is paid semiannually on July 31 and January 31. Fox's fiscal year is the calendar year. Fox uses the straight-line method of amortization. Required: 1....
Federal Semiconductors issued 11% bonds, dated January 1, 2014 with a face amount of $80 million....
Federal Semiconductors issued 11% bonds, dated January 1, 2014 with a face amount of $80 million. The bonds sold for $75,412,032 and mature on December 31, 2023. For bonds of similar risk and maturity the market yield is 12%. Interest is paid semi-annually on June 30 and December 31 of each year. Required: 1. Prepare the journal entry to account for the bond issuance on January 1, 2014. 2. Prepare the journal entry for the first interest payment on June...
On January 1, 2016, CIATS Corp. issued $100,000 face value, 9% bonds for $107,106 cash. The...
On January 1, 2016, CIATS Corp. issued $100,000 face value, 9% bonds for $107,106 cash. The bonds are dated January 1, 2016, and mature on December 31, 2020. Interest will be paid semiannually on January 1 and July 1. The effective rate is 8% and CIATS uses the effective method to record the cash payments. What is the accrued interest amount that CIATS Corp. report in its December 312016 balance sheet?
On May 1, 2020, Sunland Corp. issued $850,000, 9%, 5-year bonds at face value. The bonds...
On May 1, 2020, Sunland Corp. issued $850,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2020, and pay interest annually on May 1. Financial statements are prepared annually on December 31. Prepare the journal entry to record the issuance of the bonds. Prepare the adjusting entry to record the accrual of interest on December 31, 2020. Show the balance sheet presentation on December 31, 2020. Prepare the journal entry to record payment of interest on...
On May 1, 2010, Newby Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were...
On May 1, 2010, Newby Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2010, and pay interest semiannually on May 1 and November 1.Financial statements are prepared annually on December 31
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