Tomin Company issued bonds $299,000 of 5 year, 6 percent bonds on January 1, 2016, at...
Tomin Company issued bonds $299,000 of 5 year, 6 percent bonds on January 1, 2016, at 93. Interest is payable in cash annually on December 31. The straight-line method is used for amortization.
What is the interest interest expense Tomin will recognize each year?
Homework Answers
Interest interest expense Tomin will recognize each year= $22,126
Working
| Bond issue price (299000/100 x 93) | $ 278,070 |
| Face value | $ 299,000 |
| Discount on bonds payable | $ 20,930 |
| Number of Interest payments | 5 |
| Discount/ premium to be amortized per year | $ 4,186 |
| Cash Interest on bond (299000 x 6%) | $ 17,940 |
| Interest expense to be recorded (17940+4186) | $ 22,126 |
Add Answer to:
Tomin Company issued bonds $299,000 of 5 year, 6 percent bonds
on January 1, 2016, at...
DajendJK Company issued bonds $267,000 of 5 year, 6 percent bonds on January 1, 2018, at 102. Interest is payable in cas...
DajendJK Company issued bonds $267,000 of 5 year, 6 percent bonds on January 1, 2018, at 102. Interest is payable in cash annually on December 31. The straight-line method is used for amortization. What is the interest payment DajendJK will pay each year? $_______
On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016
On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled 522,107.40. Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 7% December 31, 2016 First interest payment using the effective interest method December 31, 2016 Amortization of bond issue costs using the straight-line method December 31,...
On January 1, 2016, Knorr Corporation issued $1,400,000 of 7%, 5-year bonds dated January 1, 2016....
On January 1, 2016, Knorr Corporation issued $1,400,000 of 7%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 8%. Bond issue costs associated with the bonds totaled $21,540.76. Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 8% December 31, 2016 First interest payment using the effective interest method December 31, 2016 Amortization of bond issue costs...
The Square Foot Grill, Inc. issued $200,000 of 10-year, 6 percent bonds on January 1, 2018,...
The Square Foot Grill, Inc. issued $200,000 of 10-year, 6 percent bonds on January 1, 2018, at 102. Interest is payable in cash annually on December 31. The straight-line method is used for amortization. Interest expense is $11,600 Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2018. Determine the carrying value of the bond liability as of December 31, 2019.
1. On January 1, Year 1, Price Co. issued $393,000 of five-year, 6 percent bonds at...
1. On January 1, Year 1, Price Co. issued $393,000 of five-year,
6 percent bonds at 95. Interest is payable annually on December 31.
The discount is amortized using the straight-line method.
Required
Prepare the journal entries to record the bond transactions for
Year 1 and Year 2.
- Record the entry for issuance of bonds
-Record the entry for recognizing interest expense on Dec. 31,
Year 1
-Record the entry for recognizing interest expense on Dec. 31,
Year...
The Square Foot Grill, Inc. issued $214,000 of 10-year, 5 percent bonds on January 1, 2018,...
The Square Foot Grill, Inc. issued $214,000 of 10-year, 5 percent bonds on January 1, 2018, at 102. interest is payable in cash annually on December 31. The straight-line method is used for amortization. A. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2018. B. Determine the amount of interest expense reported on the 2018 income statement. C. Determine the carrying value of the bond liability as of December...
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds...
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7% payable in cash on December 31 of each year. The company amortizes the premium on a straight-line basis. Assuming a straight line amortization of the premium, the journal entry necessary to recognize interest expense on the December 31, Year 1 is...
On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96%....
On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96%. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required a. Determine the amount of cash proceeds received by Price Co. on January 1, Year 1 b. Calculate the amount of interest expense reported on the December 31, Year 2, income statement. c. What is the carrying value of the bond liability as of December 31, Year 2?...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
January 15 2016 and were The Mariner Company, a calendar-year corporation, issued $500,000 of $1.000 so...
January 15 2016 and were The Mariner Company, a calendar-year corporation, issued $500,000 of $1.000 so bonds at a price generating a 4% yield. The bonds were dated January 15 2016 issued that day. The bonds mature January 15 2026. The bonds pay interest Semi annually on July 15 and January 1st of each year. 1. Using the straight-line method of amortization and the effective interest ra method of amortization prepare an amortization schedule for the bonds listin a. Date...
1. On January 1, Year 1, Price Co. issued $393,000 of five-year,
6 percent bonds at 95. Interest is payable annually on December 31.
The discount is amortized using the straight-line method.
Required
Prepare the journal entries to record the bond transactions for
Year 1 and Year 2.
- Record the entry for issuance of bonds
-Record the entry for recognizing interest expense on Dec. 31,
Year 1
-Record the entry for recognizing interest expense on Dec. 31,
Year...
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7% payable in cash on December 31 of each year. The company amortizes the premium on a straight-line basis. Assuming a straight line amortization of the premium, the journal entry necessary to recognize interest expense on the December 31, Year 1 is...
On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96%. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required a. Determine the amount of cash proceeds received by Price Co. on January 1, Year 1 b. Calculate the amount of interest expense reported on the December 31, Year 2, income statement. c. What is the carrying value of the bond liability as of December 31, Year 2?...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
January 15 2016 and were The Mariner Company, a calendar-year corporation, issued $500,000 of $1.000 so bonds at a price generating a 4% yield. The bonds were dated January 15 2016 issued that day. The bonds mature January 15 2026. The bonds pay interest Semi annually on July 15 and January 1st of each year. 1. Using the straight-line method of amortization and the effective interest ra method of amortization prepare an amortization schedule for the bonds listin a. Date...
Most questions answered within 3 hours.
-
Which of the following is true for simultaneous testing?
a. Net specificity is greater than the...
asked 1 minute ago -
Discuss the importance of homologous recombination and
transposition in natural horizontal gene transfer and evolution. Be...
asked 5 minutes ago -
Brittle material has the properties Sut = 30 kpsi and Suc = 90
kpsi. Using the...
asked 4 minutes ago -
*
write about Plastic recycling statistics ( Plastic recycling rate )
last two years , i...
asked 4 minutes ago -
The activation energy for a given reaction is 50.3 kJ/mol. If
the rate constant for the...
asked 57 minutes ago -
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 2 hours ago -
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 4 hours ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 5 hours ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 5 hours ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 6 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 6 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 6 hours ago