Homework Answers
Amortization Table:
| Period-End |
Cash interest Received |
Bond interest Revenue |
Discount Amortization |
Carrying Value |
| January 1 | $74,049,340 | |||
| June 30 | $2,000,000 | $2,221,480 | $221,480 | $74,270,820 |
| December 31 | $2,000,000 | $2,228,125 | $228,125 | $74,498,945 |
Cash interest received = $80,000,000 x 5% x 6/12 = $2,000,000
Bond interest revenue = Preceding carrying value x 6% x 6/12.
Discount amortization = Bond interest revenue - Cash interest received
Carrying value = Preceding carrying value + Discount amortization
Journal Entries:
| Date | Account title and Explanation | Debit | Credit |
| June 30 | Cash | $2,000,000 | |
| Discount on notes receivable | $221,480 | ||
| Interest revenue | $2,221,480 | ||
| [To record interest revenue] | |||
| Date | Account title and Explanation | Debit | Credit |
| Cash | $2,000,000 | ||
| Discount on notes receivable | $228,125 | ||
| Interest revenue | $2,228,125 | ||
| [To record interest revenue] |
Add Answer to:
help asap please
On January 1, a company purchased 5%, 10-year corporate bonds for $74,049,340 as...
On January 1, a company purchased 4%, 10-year corporate bonds for $63,842,205 as an investment. The...
On January 1, a company purchased 4%, 10-year corporate bonds for $63,842,205 as an investment. The bonds have a face amount of $75 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question by entering your answers in the tabs below....
On January 1, a company purchased 6% 10-year corporate bonds for $51.845.994 as an investment. The...
On January 1, a company purchased 6% 10-year corporate bonds for $51.845.994 as an investment. The bonds have a face amount of $60 million and are priced to yield 8%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question by entering your answers in the tabs below...
Check my work On January 1, a company purchased 2%, 10-year corporate bonds for $58,553,901 as...
Check my work On January 1, a company purchased 2%, 10-year corporate bonds for $58,553,901 as an investment. The bonds have a face amount of $70 million and are priced to yield 4%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31, Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. Complete this question by entering your answers in...
See all photos + Add to On January 1, a company purchased 5%, 10 year corporate...
See all photos + Add to On January 1, a company purchased 5%, 10 year corporate bonds for $55,537,005 as an investment. The bonds have a face amount of 560 million and are priced to yield 6%. Interest is paid semiannually 5.83 Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question...
On January 1, a company purchased 3%, 15-year corporate bonds for $42,359,796 as an investment. The...
On January 1, a company purchased 3%, 15-year corporate bonds for $42,359,796 as an investment. The bonds have a face amount of $60 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31. Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. Answer is complete but not entirely correct. Complete this question by...
Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value...
Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $105,000 and semiannual interest payments. (0) (1) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Un amortized Premium $8,211 7,390 6,569 Carrying Value $113,211 112,390 111,569 (2) Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c)...
Help Save & alt Sub On January 1, 2021, for $18.4 million, Cenotaph Company purchased 10%...
Help Save & alt Sub On January 1, 2021, for $18.4 million, Cenotaph Company purchased 10% bonds, dated January 1, 2021, with a face amount of $20.4 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31 Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021,...
The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967,707. The bonds...
The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967,707. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30. Required: Complete the below table to record the company's journal entry. 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30,...
Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value...
Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $92,000 and semiannual interest payments. (0) (1) (2) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $7,951 7,156 6,361 Carrying Value $99,951 99, 156 98,361 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c)...
Duval Co. issues four-year bonds with a $118,000 par value on January 1, 2019. at a...
Duval Co. issues four-year bonds with a $118,000 par value on January 1, 2019. at a price of $113,864. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. Exercise 10-7 Part 1 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Semiannual Period End Unmortired D iscount Carrying Value 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022 2. Prepare journal entries to record...
On January 1, a company purchased 4%, 10-year corporate bonds for $63,842,205 as an investment. The bonds have a face amount of $75 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question by entering your answers in the tabs below....
On January 1, a company purchased 6% 10-year corporate bonds for $51.845.994 as an investment. The bonds have a face amount of $60 million and are priced to yield 8%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question by entering your answers in the tabs below...
Check my work On January 1, a company purchased 2%, 10-year corporate bonds for $58,553,901 as an investment. The bonds have a face amount of $70 million and are priced to yield 4%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31, Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. Complete this question by entering your answers in...
See all photos + Add to On January 1, a company purchased 5%, 10 year corporate bonds for $55,537,005 as an investment. The bonds have a face amount of 560 million and are priced to yield 6%. Interest is paid semiannually 5.83 Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question...
On January 1, a company purchased 3%, 15-year corporate bonds for $42,359,796 as an investment. The bonds have a face amount of $60 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31. Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. Answer is complete but not entirely correct. Complete this question by...
Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $105,000 and semiannual interest payments. (0) (1) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Un amortized Premium $8,211 7,390 6,569 Carrying Value $113,211 112,390 111,569 (2) Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c)...
Help Save & alt Sub On January 1, 2021, for $18.4 million, Cenotaph Company purchased 10% bonds, dated January 1, 2021, with a face amount of $20.4 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31 Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021,...
The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967,707. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30. Required: Complete the below table to record the company's journal entry. 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30,...
Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $92,000 and semiannual interest payments. (0) (1) (2) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $7,951 7,156 6,361 Carrying Value $99,951 99, 156 98,361 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c)...
Duval Co. issues four-year bonds with a $118,000 par value on January 1, 2019. at a price of $113,864. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. Exercise 10-7 Part 1 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Semiannual Period End Unmortired D iscount Carrying Value 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022 2. Prepare journal entries to record...
Most questions answered within 3 hours.
-
What mechanisms Drive speciation??
(I.e. what was Dawins theory on the orgin of species, and how...
asked 4 minutes ago -
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 55 minutes ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 2 hours ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 3 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 4 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 4 hours ago -
In a study of the gas phase decomposition of sulfuryl chloride
at 600 K SO2Cl2(g)SO2(g) +...
asked 4 hours ago -
75 g of 2-propanol (C3H8O) and 25 g of pentane are mixed in a
200 mL...
asked 4 hours ago -
The 2800-turn coil in a dc motor has an area per turn of 1.1 ×
10-2...
asked 5 hours ago -
Draw a combinational logic circuit diagram with a symbol inside
the box for two I/P of...
asked 5 hours ago -
The cliché we use quite a lot in finance is: there is a need to
maximize...
asked 5 hours ago -
In class we discussed the addition of HCl to alpha pinene. Would
you expect one or...
asked 5 hours ago