On January 1, 2018, Bonita Industries issued its 11% bonds in the face amount of $8090000,...
On January 1, 2018, Bonita Industries issued its 11% bonds in the face amount of $8090000, which mature on January 1, 2028. The bonds were issued for $9520000 to yield 9%, resulting in bond premium of $1430000. Bonita uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2018, Bonita's adjusted unamortized bond premium should be
Homework Answers
Solution
Bonita's adjusted unamortized bond premium should be $1,396,900
Working
| Amortization table | ||||||
| Period | Cash payment | Interest expense | Premium on Bonds payable | Carrying Value of Bond | Unamortized bond premium | |
| Issued | -$ 14,30,000 | $ 9,520,000 | $ 1,430,000 | |||
| 2018 | December | $ 889,900 | $ 856,800 | -$ 33,100 | $ 9,486,900 | $ 1,396,900 |
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On January 1, 2018, Bonita Industries issued its 11% bonds in
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please , can I see the calculations of these two exercises . thank you five pe...
please , can I see the calculations of these two exercises . thank
you
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At the beginning of 2017, Bonita Industries issued 8% bonds with a face value of $4900000....
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amount of $13900000, which mature on July 1, 2022. The bonds were
issued for $13280000 to yield 9%, resulting in a bond discount of
$620000. Swifty uses the effective-interest method of amortizing
bond discount. Interest is payable annually on June 30. At June 30,
2018, Swifty's unamortized bond discount should be
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$463712.
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please , can I see the calculations of these two exercises . thank
you
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3. On January l, Martinez Inc. issued S 5,000,000, l 1% bonds. The bonds mature in n years. Interest is payable annually on December 31. The issue price was $5,680,519.06 Martinez uses the effective-interest method of amortizing bond premium. At the end of ten years, Martinez should report unamortized bond premium of(nearest dollar): A) $308,551 B) $45,455 C) $ 91,743 D) $641,766 E) None of the above
At the beginning of 2017, Bonita Industries issued 8% bonds with
a face value of $4900000. These bonds mature in five years, and
interest is paid semiannually on June 30 and December 31. The bonds
were sold for $4539360 to yield 10%. Bonita uses a calendar-year
reporting period. Using the effective-interest method of
amortization, what amount of interest expense should be reported
for 2017? (Round your answer to the nearest dollar.)
$454138
$468352
$455484
$452806
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