Homework Answers
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Problem 6 On January 1, 2014, Irish, Inc. issued...
Problem 6 On January 1, 2014, Irish, Inc. issued 10-year bonds of $500,000 face value at...
Problem 6 On January 1, 2014, Irish, Inc. issued 10-year bonds of $500,000 face value at 103. Interest is payable on June 30 and December 31 at 8%. On April 1, 2015, Irish reacquires $100,000 bonds at 99 plus accrued interest. The fiscal period for Irish is the calendar year. The straight-line method is used to amortize any premium or discount. Prepare entries to record: A) the issuance of the bonds and B) the reacquisition and retirement of the bonds.
On January 1, 2015, Lenore, Inc. issued $800,000, 6% bonds when the market rate was 7%....
On January 1, 2015, Lenore, Inc. issued $800,000, 6% bonds when the market rate was 7%. Interest is payable semiannually on December 31 and June 30 with bonds maturing on December 31, 2024. The bonds are callable at 103. On December 31, 2018, Lenore retired $400,000 of the bonds at the call price. At the time they retired the bonds, they also paid the accused interest for those bonds retired. Required: a. Prepare the journal entry to record the issuance...
Un January 1, 2015, Lenore. Inc issued S000.000 Son hands when the market rate was cember...
Un January 1, 2015, Lenore. Inc issued S000.000 Son hands when the market rate was cember 31 and June 30 with the bonds maturing on Interest is payable semiannually on December 31 and June 30 with the bone December 31, 2024. The bonds are callable at 103. On Decemb ne bonds are callable at 103. On December 31, 2019, Lenore retired $450,000 of the bonds at the call price. At the time they retired the bonas, accrued interest for those...
BSE 3120 Intermediate Accounting II In-Class Activities On January 1, 2015, Winnie, Inc. issued $1,000,000, 6%...
BSE 3120 Intermediate Accounting II In-Class Activities On January 1, 2015, Winnie, Inc. issued $1,000,000, 6% bonds when the market rate was 5%. Interest is payable semiannually on December 31 and June 30 with the bonds maturing on December 31, 2024. The bonds are callable at 102. On January 1, 2020, Winnie retired $600,000 of the bonds at the call price. At the time they retired the bonds, they also paid the accrued interest for those bonds retired. Winnie uses...
P&J sells $500,000 of 10% bonds on Nov 1, 2014. The bonds pay interest on May...
P&J sells $500,000 of 10% bonds on Nov 1, 2014. The bonds pay interest on May 1 and Nov 1 and are to yield 12%. The due date of the bonds is May 1, 2018. The accounting period is the calendar year. Premium or discount is to be amortized at interest dates and at year-end. Compute the price of the bonds at the issuance date Prepare the amortization schedule Prepare entries for 2014, 2015 and May 1, 2016
Problem 1 Part A: On January 1, Altman Company issued bonds that had a par value...
Problem 1 Part A: On January 1, Altman Company issued bonds that had a par value of $77 509 ith a stated interest rate of 4% and a 5 year maturity date. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued at 103 1/2. a) Prepare the journal entries Altman Company must record in its books at bond issuance and the first interest payment date. Altman Company uses the straight line method to amortize...
Hill Corporation issued $900,000 of 9% bonds at 99 on January 2, 2014. Interest is paid...
Hill Corporation issued $900,000 of 9% bonds at 99 on January 2, 2014. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On March 31, 2017, Hill recalls the bonds at the call price of 107 plus accrued interest. Prepare the journal entries to record the reacquisition (recall) of Hill’s bonds.
Extinguishment of Bonds Prior to Maturity On December 1, 2014, Cone Company issued its 8%, $530,000...
Extinguishment of Bonds Prior to Maturity On December 1, 2014, Cone Company issued its 8%, $530,000 face value bonds for $610,000, plus accrued interest. Interest is payable on November 1 and May 1. On December 31, 2016, the book value of the bonds, inclusive of the unamortized premium, was $560,000. On July 1, 2017, Cone reacquired the bonds at 99 plus accrued interest. Cone appropriately uses the straight-line method for the amortization because the results do not materially differ from...
On January 1, 2018, Professors Credit Union (PCU) issued 7%, 20-year bonds payable with face value...
On January 1, 2018, Professors Credit Union (PCU) issued 7%, 20-year bonds payable with face value of $100,000. The bonds pay interest on June 30 and December 31. Read the requirements. Requirement 1. If the market interest rate is 5% when PCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 7% bonds issued when the market interest rate is 5% will be priced at 7. They are in...
On March 1, 2014, Angela Company issues $100,000, 4.8%, 4-year bonds to yield 8%, however the...
On March 1, 2014, Angela Company issues $100,000, 4.8%, 4-year bonds to yield 8%, however the bonds are dated January 1, 2014. Interest is paid on Jun 30 and December 31. The proceeds from the bonds are $89,228 plus accrued interest. The company's fiscal year ends on December 31 and they use the straight-line method to amortize discounts and premiums. a) What amount of interest expense will be reported on the 2014 Income Statement? (Please show the process)
Problem 6 On January 1, 2014, Irish, Inc. issued 10-year bonds of $500,000 face value at 103. Interest is payable on June 30 and December 31 at 8%. On April 1, 2015, Irish reacquires $100,000 bonds at 99 plus accrued interest. The fiscal period for Irish is the calendar year. The straight-line method is used to amortize any premium or discount. Prepare entries to record: A) the issuance of the bonds and B) the reacquisition and retirement of the bonds.
Un January 1, 2015, Lenore. Inc issued S000.000 Son hands when the market rate was cember 31 and June 30 with the bonds maturing on Interest is payable semiannually on December 31 and June 30 with the bone December 31, 2024. The bonds are callable at 103. On Decemb ne bonds are callable at 103. On December 31, 2019, Lenore retired $450,000 of the bonds at the call price. At the time they retired the bonas, accrued interest for those...
BSE 3120 Intermediate Accounting II In-Class Activities On January 1, 2015, Winnie, Inc. issued $1,000,000, 6% bonds when the market rate was 5%. Interest is payable semiannually on December 31 and June 30 with the bonds maturing on December 31, 2024. The bonds are callable at 102. On January 1, 2020, Winnie retired $600,000 of the bonds at the call price. At the time they retired the bonds, they also paid the accrued interest for those bonds retired. Winnie uses...
P&J sells $500,000 of 10% bonds on Nov 1, 2014. The bonds pay interest on May 1 and Nov 1 and are to yield 12%. The due date of the bonds is May 1, 2018. The accounting period is the calendar year. Premium or discount is to be amortized at interest dates and at year-end. Compute the price of the bonds at the issuance date Prepare the amortization schedule Prepare entries for 2014, 2015 and May 1, 2016
Problem 1 Part A: On January 1, Altman Company issued bonds that had a par value of $77 509 ith a stated interest rate of 4% and a 5 year maturity date. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued at 103 1/2. a) Prepare the journal entries Altman Company must record in its books at bond issuance and the first interest payment date. Altman Company uses the straight line method to amortize...
On January 1, 2018, Professors Credit Union (PCU) issued 7%, 20-year bonds payable with face value of $100,000. The bonds pay interest on June 30 and December 31. Read the requirements. Requirement 1. If the market interest rate is 5% when PCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 7% bonds issued when the market interest rate is 5% will be priced at 7. They are in...
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