Interest is calculated on face value amount
The Interest expense for the first payment date (six months)
= 97000 × 6% × 6 / 12
= $2910
On January 1, 2021, Lizzy's Lemonade logues 5%, 20 year bonds with a foce amount of...
On January 1, 2021, Lizzy's Lemonade issues 6%, 10-year bonds with a face amount of $89,000 for $82,675, priced to yield 7%. Interest Is paid semiannually. What amount of Interest expense will be recorded on June 30, 2021, the first interest payment date? (Round your final answer to the nearest whole dollar amount.) newconnect.meducation.com D ACCT-2090004 e Danse Help Required Assignment Brief Exercise 9-6 Record bond issue at face amount and related semiannual interest (LO9-5) Pretreimanis, Inc. issues 6% 10...
Pretzelmania, Inc., issues 5%, 20-year bonds with a face amount of $53,000 for $46,875 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate computations...
On January 1, 2021, Universe of Fun issues $890,000, 9% bonds that mature in 20 years. The market interest rate for bonds of similar risk and maturity is 10%, and the bonds issue for $813,642. Interest is paid semiannually on June 30 and December 31. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 1/1/2021...
On January 1, 2021, Lyle's Limeade issues 4%, 10-year bonds with a face amount of $81,000 for $74,686, priced to yield 5%. Interest is paid semiannually. What amount of interest expense will be recorded in the December 31, 2021, annual income statement? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount.) Interest expense
Brief Exercise 9-13 Calculate Interest expense (L09-5) On January 1, 2021, Lyle's Limende issues 4%, 10-year bonds with a face amount of $84,000 for $77,453.priced to yleld 5%. Interest is pald semiannually What amount of Interest expense will be recorded in the December 31, 2021, annual Income statement? (Do not round your Intermediate calculations. Round your final answer to nearest whole dollar amount.)
Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $52,000 for $48,305 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate computations...
Universal Foods issued 12% bonds, dated January 1, with a foce amount of $155 million on January 1, 2021 to Wang Communications. The bonds mature on December 31, 2035 (15 years). The market rate of Interest for similar issues was 14%. Interest is pald semiannually on June 30 and December 31. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. to...
Pretzelmania, Inc., Issues 6%, 10-year bonds with a face amount of $60,000 for $64.677 on January 1, 2021. The market Interest rate for bonds of similar risk and maturity is 5%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first Interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field. Round your Intermediate computations and final...
Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate computations and final...
Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $51,000 for $46,591 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermed iate...