Homework Answers
1) Journal entry
| date | account and explanation | Debit | Credit |
| Jan 1 | cash | 3010000 | |
| Discount on bonds payable | 390000 | ||
| Bonds payable | 3400000 | ||
2) Journal entry
| date | account and explanation | Debit | Credit |
| June 30 | Interest expense | 189500 | |
| Discount on bonds payable (390000/20) | 19500 | ||
| Cash (3400000*5%) | 170000 | ||
3) Journal entry
| date | account and explanation | Debit | Credit |
| Dec 31 | Interest expense | 189500 | |
| Discount on bonds payable (390000/20) | 19500 | ||
| Cash (3400000*5%) | 170000 |
Add Answer to:
1. Romero issues 53,400,000 of 10%, 10 year bonds dated January 1, 2019, that payer semiannually...
2. Romero issues $3,400,000 of 10%, 10 year bonds dated January 1, 2019, that pay interest semiannually on June 30...
2. Romero issues $3,400,000 of 10%, 10 year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $4,192,932. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. Prepare the journal entries to record the first two interest payments.
Romero issues $3,400 of 10%, 10 year bonds dated January 1, 2019, that pay interest semiannually...
Romero issues $3,400 of 10%, 10 year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $4,192,932. 1. Prepare the January 1 journal entry to record the bonds issuance. 2. For each semiannual period, compute (a) the cash payment, (b) the straight line discount amortization, and (c) the bond interest expense. 3. Determine the total bond interest expense to be recognized over the bonds' life. 4....
Legacy issues $560,000 of 9.0%, four-year bonds dated January 1, 2019, that pay interest semiannually on...
Legacy issues $560,000 of 9.0%,
four-year bonds dated January 1, 2019, that pay interest
semiannually on June 30 and December 31. They are issued at
$507,831 when the market rate is 12%.
Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $560,000 on January 1, 2019 at an issue price of $507,831. Note: Enter debits before credits. General Journal Debit...
Hillside issues $2,900,000 of 9%, 15 year bonds dated January 1, 2019, that pay interest semiannually...
Hillside issues $2,900,000 of 9%, 15 year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,549,590 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2a) For each semiannual period, complete the table below to calculate the cash payment 2/b) For each semiannual period, complete the table below to calculate the straight-line premium amortization 21c) For each semiannual period, complete the...
Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on...
Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $4,895,980. Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table...
Ike issues $90,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually on...
Ike issues $90,000 of 11%, three-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
They are issued at $92,283. When the market rate is 10%.
1. Prepare the January 1 journal entry to
record the bonds' issuance.
2. Complete the below table to calculate the
total bond interest expense to be recognized over the bonds'
life.
3. Prepare an effective interest amortization
table for the bonds' first two years
4. Prepare the journal...
Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on...
Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,835,994. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2C) For each semiannual period, complete the table...
Legacy issues $630,000 of 9.0%, four-year bonds dated January 1, 2018, that pay interest semiannually on...
Legacy issues $630,000 of 9.0%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. They are issued at $571,310, and their market rate is 12% at the issue date. Required: 1. Are these bonds issued at a premium or a discount and how can you tell? 2. Prepare the January 1, 2018, journal entry to record the bonds' issuance. 3. Prepare an effective interest amortization table for the bonds. 4. Prepare the journal...
Hillside issues $1800,000 of 7% 15 -year bonds dated January 1, 2019. that pay interest semiannually on June 30...
Hillside issues $1800,000 of 7% 15 -year bonds dated January 1, 2019. that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,555,401 Required: 1. Prepare the January 1journal entry to record the bonds issuance 2a) For each semiannual period, complete the table below to calculate the cash payment 2b) For each semiannual period, complete the table below to calculate the straight-line discount amortization 2) For each semiannual period, complete the table...
Ike issues $200,000 of 9%, three-year bonds dated January 1, 2019, that pay interest semiannually on...
Ike issues $200,000 of 9%, three-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
They are issued at $205,239. When the market rate is 8%. JOURNAL
ENTRY BELOW
Required:
1. Prepare the January 1 journal entry to record
the bonds' issuance.
un vuuuuy juuni Cry Teco ule wurUS ISSUdlice. transaction list ournal entry worksheet Record the issue of bonds with a par value of $200,000 on January 1, 2019 at an issue price...
2. Romero issues $3,400,000 of 10%, 10 year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $4,192,932. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. Prepare the journal entries to record the first two interest payments.
Legacy issues $560,000 of 9.0%,
four-year bonds dated January 1, 2019, that pay interest
semiannually on June 30 and December 31. They are issued at
$507,831 when the market rate is 12%.
Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $560,000 on January 1, 2019 at an issue price of $507,831. Note: Enter debits before credits. General Journal Debit...
Hillside issues $2,900,000 of 9%, 15 year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,549,590 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2a) For each semiannual period, complete the table below to calculate the cash payment 2/b) For each semiannual period, complete the table below to calculate the straight-line premium amortization 21c) For each semiannual period, complete the...
Ike issues $90,000 of 11%, three-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
They are issued at $92,283. When the market rate is 10%.
1. Prepare the January 1 journal entry to
record the bonds' issuance.
2. Complete the below table to calculate the
total bond interest expense to be recognized over the bonds'
life.
3. Prepare an effective interest amortization
table for the bonds' first two years
4. Prepare the journal...
Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,835,994. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2C) For each semiannual period, complete the table...
Legacy issues $630,000 of 9.0%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. They are issued at $571,310, and their market rate is 12% at the issue date. Required: 1. Are these bonds issued at a premium or a discount and how can you tell? 2. Prepare the January 1, 2018, journal entry to record the bonds' issuance. 3. Prepare an effective interest amortization table for the bonds. 4. Prepare the journal...
Hillside issues $1800,000 of 7% 15 -year bonds dated January 1, 2019. that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,555,401 Required: 1. Prepare the January 1journal entry to record the bonds issuance 2a) For each semiannual period, complete the table below to calculate the cash payment 2b) For each semiannual period, complete the table below to calculate the straight-line discount amortization 2) For each semiannual period, complete the table...
Ike issues $200,000 of 9%, three-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
They are issued at $205,239. When the market rate is 8%. JOURNAL
ENTRY BELOW
Required:
1. Prepare the January 1 journal entry to record
the bonds' issuance.
un vuuuuy juuni Cry Teco ule wurUS ISSUdlice. transaction list ournal entry worksheet Record the issue of bonds with a par value of $200,000 on January 1, 2019 at an issue price...
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