THE FIRST IMAGE IS AN ANSWER THE THE QUESTION. PLEASE EXPLAIN WHERE THE NUMBERS IN THE JOURNAL ENTRY COME FROM
Homework Answers
- 140,000 is the actual amount of bonds payable that is 280,000/2 as walker purchased half of the bonds.
- 15,400 is the income reported by walker.
- 4,200 is the balancing figure, if it is credit then it will be gain on bond retirement.
- Investment in sky bonds is the book value of bonds add discount payable on bonds that is 263,200/2 + 11,200/2 = 137,200.
- 16,800 is the expense as incurred by sky corp, which is 33,600/2 = 15,600.
- Discount on bonds payable is calculated as 11,200/2 = 5,600.
- In order to simplify this get a grip on the concept of bonds, as you are already well aware of accounting it will be easy then.
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THE FIRST IMAGE IS AN ANSWER THE THE QUESTION. PLEASE
EXPLAIN WHERE THE NUMBERS IN THE...
Hi could someone help me do what is wrong and explain me the debits and credits...
Hi could someone help me do what is wrong and explain me the
debits and credits for the journal entries? Thanks!
On January 1, 2013, Surreal Manufacturing issued 790 bonds, each with a face value of $1.000, a stated interest rate of 3.50 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $779,041. Surreal uses...
On January 1, 2018, Loop Raceway issued 700 bonds, each with a face value of $1,000,...
On January 1, 2018, 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, 2020.
On the issue date, the market interest rate was 7 percent, so the
total proceeds from the bond issue were $681,631. Loop uses the
straight-line bond amortization method and adjusts for any rounding
errors when recording interest in the final year.
Required:
1. Prepare...
please answer the following questions. (journal entries) 1. On July 1, 2013. Avery Services issued a...
please answer the following questions.
(journal entries)
1. On July 1, 2013. Avery Services issued a 4% long-term note payable for S10,000. It is payable over a 5-year term in $2,000 principal installments on July 1 of each year. Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period. Please provide the journal entry needed on July 1, 2014 when the first installment payment is made. (4 points) 2. Paris Company buys...
First image is the question and the rest are the answer options Question 3 1 pts...
First image is the question and the rest are the answer
options
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is: [Select] Assuming interest is paid annually on December 31st what is the journal entry to record interest payments? [Select] What is the journal entry recorded when the bonds mature? [Select] Question 3 1 pts If...
At 31 December 20X8, Northern Resources Ltd. reports the following on its statement of financial position:...
At 31 December 20X8, Northern Resources Ltd. reports the following on its statement of financial position: Bonds payable, 4%, interest payable semi-annually on 30 June and 30 December $ 9,400,000 Discount on bonds payable 470,000 $ 8,930,000 The effective interest rate, or market interest rate, was 6% on issuance. On 1 March 20X9, 30% of the bond issue was bought back in the open market and retired at 101 plus accrued interest. The following table relates to 20X9 (numbers have...
Question 3 Answer A and B AB Issuing Bonds at a Discount On the first day...
Question 3 Answer A and B
AB
Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $7,600,000, 6%, 6-year bond that pays semiannual interest of $228,000 ($7,600,000 6% x 12), receiving cash of $6,886,734. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable Discount Amortization On the first day of the fiscal year, a company issues a $7,600,000,...
Help me with Answer A and B Please :) A. B. Discount Amortization On the first day of the fiscal year, a company issues...
Help me with Answer A and B Please :)
A.
B.
Discount Amortization On the first day of the fiscal year, a company issues a $2,200,000, 6%, 10-year bond that pays semiannual interest of $66,000 ($2,200,000 x 6% x V2), receiving cash of $1,770,739. Journalize the first interest payment and the amortization of the related bond discount Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable...
Please explain detail Sweet, Inc. had outstanding $5,580,000 of 12% bonds (interest payable July 31 and...
Please explain detail
Sweet, Inc. had outstanding $5,580,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,400,000°f 10%, 15-year bonds (interest payable July 1 and January 1) at 99. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $111,600) at 102 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds....
Please explain how to get each of the numbers. For example, explain how you get the...
Please explain how to get each of the
numbers. For example, explain how you get the present value of the
bonds using the excel PV function and how you get each of the
numbers for the amortization schedule and journal entries. Thanks
so much.
P14-2IL01,2) Issuance and Redemption of Bonds Venezuela Co. is building a new hockey arena. Information concerning the arena follows. $ $ $ $ 2,500,000 500,000 2,000,000 2,000,000 Cost of arena Down payment received from local businesses...
help please!! Issuing Bonds at a Discount On the first day of the fiscal year, a...
help please!!
Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $2,400,000, 7%, 6-year bond that pays semiannual interest of $84,000 $2,400,000 x 7% x V), receiving cash of $2,287,379 Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Accounts Payable Bonds Payable Cash Interest Expense Interest Payable Premium on Bonds Payable Discount Amortization On the first day of the fiscal year, a company issues...
Hi could someone help me do what is wrong and explain me the
debits and credits for the journal entries? Thanks!
On January 1, 2013, Surreal Manufacturing issued 790 bonds, each with a face value of $1.000, a stated interest rate of 3.50 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $779,041. Surreal uses...
On January 1, 2018, 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, 2020.
On the issue date, the market interest rate was 7 percent, so the
total proceeds from the bond issue were $681,631. Loop uses the
straight-line bond amortization method and adjusts for any rounding
errors when recording interest in the final year.
Required:
1. Prepare...
please answer the following questions.
(journal entries)
1. On July 1, 2013. Avery Services issued a 4% long-term note payable for S10,000. It is payable over a 5-year term in $2,000 principal installments on July 1 of each year. Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period. Please provide the journal entry needed on July 1, 2014 when the first installment payment is made. (4 points) 2. Paris Company buys...
First image is the question and the rest are the answer
options
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is: [Select] Assuming interest is paid annually on December 31st what is the journal entry to record interest payments? [Select] What is the journal entry recorded when the bonds mature? [Select] Question 3 1 pts If...
Question 3 Answer A and B
AB
Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $7,600,000, 6%, 6-year bond that pays semiannual interest of $228,000 ($7,600,000 6% x 12), receiving cash of $6,886,734. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable Discount Amortization On the first day of the fiscal year, a company issues a $7,600,000,...
Help me with Answer A and B Please :)
A.
B.
Discount Amortization On the first day of the fiscal year, a company issues a $2,200,000, 6%, 10-year bond that pays semiannual interest of $66,000 ($2,200,000 x 6% x V2), receiving cash of $1,770,739. Journalize the first interest payment and the amortization of the related bond discount Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable...
Please explain detail
Sweet, Inc. had outstanding $5,580,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,400,000°f 10%, 15-year bonds (interest payable July 1 and January 1) at 99. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $111,600) at 102 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds....
Please explain how to get each of the
numbers. For example, explain how you get the present value of the
bonds using the excel PV function and how you get each of the
numbers for the amortization schedule and journal entries. Thanks
so much.
P14-2IL01,2) Issuance and Redemption of Bonds Venezuela Co. is building a new hockey arena. Information concerning the arena follows. $ $ $ $ 2,500,000 500,000 2,000,000 2,000,000 Cost of arena Down payment received from local businesses...
help please!!
Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $2,400,000, 7%, 6-year bond that pays semiannual interest of $84,000 $2,400,000 x 7% x V), receiving cash of $2,287,379 Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Accounts Payable Bonds Payable Cash Interest Expense Interest Payable Premium on Bonds Payable Discount Amortization On the first day of the fiscal year, a company issues...
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