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Roof Top Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $400,000...
Island Cove Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000...
Island Cove Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000 Sale price of bonds: 104 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on October 31 and April 30 Required: Prepare the following general journal entries. a. The issuance of the bonds on May 1, 20-A. The first interest payment Redeem the bonds at maturity
Bonds Issued at Face Value D&E Stamps issued the following bonds: Date of issue and sale:...
Bonds Issued at Face Value D&E Stamps issued the following bonds: Date of issue and sale: Principal amount: April 1, 20-1 $400,000 100 Sale price of bonds: Denomination of bonds: Life of bonds: Stated rate: $1,000 10 years 7%, payable semiannually on September 30 and March 31 1. Prepare journal entries for: a. Issuance of the bonds. b. Interest payment on the bonds on September 30. c. Year-end adjustment on the bonds. 1. Prepare journal entries for: a. Issuance of...
On January 1, Altman Company issued bonds that had a par value of $860,000 with a...
On January 1, Altman Company issued bonds that had a par value of $860,000 with a stated interest rate of 5% and a 5 year maturity date. The bonds pay interest semiannually on June 30 and December 31. The bonds are issue at par value. Record the journal entries Altman Company must record in its books at bond issuance, the first interest payment date, and at bond maturity. Date Description Debit Credit 01/01 to record the sale of bonds at...
Instructions General Journal Instructions Bonds Issued at a Discount Brenner's Home Club issued the following bonds...
Instructions General Journal Instructions Bonds Issued at a Discount Brenner's Home Club issued the following bonds at e discount: Date of issue and sale: April 1, 20-1 Principal amount: Sale price of bonds: Denomination of bonds: $1,000 Life of bonds Stated rate: 1. Prepare journal entries for: a. Issuance of the bonds at a discount. $470,000 98 10 years 7%, payable semiannually on September 30 and March 31 b. Interest payment and discount amortization on the bonds on September 30....
Bonds Issued at a Discount Brenner's Home Club issued the following bonds at a discount: April...
Bonds Issued at a Discount Brenner's Home Club issued the following bonds at a discount: April 1, 20-1 $500,000 Date of issue and sale: Principal amount: Sale price of bonds: Denomination of bonds: Life of bonds: 98 $1,000 10 years 7%, payable semiannually on September 30 and March 31 Stated rate: 1. Prepare journal entries for: Issuance of the bonds at a discount. b. Interest payment and discount amortization on the bonds on September 30. c. Year-end adjustment on the...
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...
The Cessna Aircraft Company has outstanding an issue of 4% convertible bonds that mature October 1, 2024. Suppose the bo...
The Cessna Aircraft Company has outstanding an issue of 4% convertible bonds that mature October 1, 2024. Suppose the bonds are dated October 1, 2016, and pay interest each April 1 and October 1. The bond information is as follows: Maturity (face) value - $100,000 Stated interest rate – 4% Interest paid – Semiannually Market interest rate at the time of issuance – 5% Requirements Assume the bonds are issued at a price of 93.5. Using the straight-line method of...
22. On January 1, 2019, a company issued $400,000 of 10-year, 12% bonds. The interest is...
22. On January 1, 2019, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semiannually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective interest method of amortization is used. Which of the following statements is incorrect? a) The market rate of interest on the sale date was less than the coupon rate of interest. b) The book value of the bond will decrease as the...
Purchases, discount amortization, and sales of bond investments On November 1, 2017, Reid corporation acquired bonds...
Purchases, discount amortization, and sales of bond investments On November 1, 2017, Reid corporation acquired bonds with a face value of $700,000 for $673,618.61. The bonds carry a stated rate of interest of 10%, were purchased to yield 11%, pay interest semiannually on April 30 and October 31, were purchased to be held to maturity, and are due October 31, 2021. On November 1, 2018, in contemplation of a major acquisition, the bonds were sold for $700,000. Reid is on...
Maul Co. prepared a bond issue dated January 1, 20X2. The face value of the bond...
Maul Co. prepared a bond issue dated January 1, 20X2. The face value of the bond was $400,000 with an annual coupon rate of interest 10% and maturity date of 5 years. The bond interest is to be paid semiannually on June 30 and Dec 31. The bonds were issued when the prevailing annual market interest rate was 8%. (show your work) How much was the issue price of the bonds January 1, 20X2? Record the journal entry required for...
Island Cove Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000 Sale price of bonds: 104 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on October 31 and April 30 Required: Prepare the following general journal entries. a. The issuance of the bonds on May 1, 20-A. The first interest payment Redeem the bonds at maturity
Bonds Issued at Face Value D&E Stamps issued the following bonds: Date of issue and sale: Principal amount: April 1, 20-1 $400,000 100 Sale price of bonds: Denomination of bonds: Life of bonds: Stated rate: $1,000 10 years 7%, payable semiannually on September 30 and March 31 1. Prepare journal entries for: a. Issuance of the bonds. b. Interest payment on the bonds on September 30. c. Year-end adjustment on the bonds. 1. Prepare journal entries for: a. Issuance of...
Instructions General Journal Instructions Bonds Issued at a Discount Brenner's Home Club issued the following bonds at e discount: Date of issue and sale: April 1, 20-1 Principal amount: Sale price of bonds: Denomination of bonds: $1,000 Life of bonds Stated rate: 1. Prepare journal entries for: a. Issuance of the bonds at a discount. $470,000 98 10 years 7%, payable semiannually on September 30 and March 31 b. Interest payment and discount amortization on the bonds on September 30....
Bonds Issued at a Discount Brenner's Home Club issued the following bonds at a discount: April 1, 20-1 $500,000 Date of issue and sale: Principal amount: Sale price of bonds: Denomination of bonds: Life of bonds: 98 $1,000 10 years 7%, payable semiannually on September 30 and March 31 Stated rate: 1. Prepare journal entries for: Issuance of the bonds at a discount. b. Interest payment and discount amortization on the bonds on September 30. c. Year-end adjustment on the...
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...
22. On January 1, 2019, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semiannually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective interest method of amortization is used. Which of the following statements is incorrect? a) The market rate of interest on the sale date was less than the coupon rate of interest. b) The book value of the bond will decrease as the...
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