Homework Answers
| 1 |
| DR Cash $750,000 CR Bonds payable $750,000 |
| 2 |
| Interest expense = 750000*5% = $37500 |
| The journal entry to record interest payment is: |
| DR Interest expense $37,500 CR Cash $37,500 |
| 3 |
| DR Bonds Payable $750,000 CR Cash $750,000 |
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If bonds with a...
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate...
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is [Select ] DR Bonds Payable $787,500 CR Cash $787,500 DR Bonds Payable $750,000 CR Cash $750,000 DR Cash $787,500 CR Bonds Payable $787,500 DR Cash $750,000 CR Bonds Payable $750,000 Assuming interest is paid annually on De Brest payments? [Select] What is the journal entry recorded when...
First image is the question and the rest are the answer options Question 3 1 pts...
First image is the question and the rest are the answer
options
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is: [Select] Assuming interest is paid annually on December 31st what is the journal entry to record interest payments? [Select] What is the journal entry recorded when the bonds mature? [Select] Question 3 1 pts If...
Question 2 1 pts Round answers to the nearest dollar and do not include $ sign. Bonds with a face value of $100,000 and...
Question 2 1 pts Round answers to the nearest dollar and do not include $ sign. Bonds with a face value of $100,000 and a quoted price of 99 are issued at $ Bonds with a face value of $500,000 and a quoted price of 101 are issued at $ Bonds with a face value of $300,000 and a quoted price of 100 are issued at $ Question 3 1 pts If bonds with a face value of $750,000 and...
The City of Buffalo issued 300 bonds at their face value of $7,000 each plus accrued...
The City of Buffalo issued 300 bonds at their face value of $7,000 each plus accrued interest on June 1, 2020. The term of the bonds was January 1, 2020, to January 1, 2026, with interest payable semi-annually each January 1 and July 1 at 7%. Buffalo uses the effective interest method. Prepare the company’s journal entry for the date of issuance June 1, 2020 Dr. Cash Cr. Binds Payable Cr. Interest Expense Prepare the company’s journal entry...
Ting Utilities is planning to issue bonds with a face value of $2,010,000 and a coupon...
Ting Utilities is planning to issue bonds with a face value of $2,010,000 and a coupon rate of 10 percent. The bonds mature in 15 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Ting uses the effective-interest amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1,...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $275,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium Required 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
Skysong Corporation issues 2,300 convertible bonds at January 1, 2019. The bonds have a 3-year life,...
Skysong Corporation issues 2,300 convertible bonds at January 1, 2019. The bonds have a 3-year life, and are issued at par with a face value of $1,000 per bond, giving total proceeds of $2,300,000. Interest is payable annually at 6%. Each bond is convertible into 250 ordinary shares (par value of $1). When the bonds are issued, the market rate of interest for similar debt without the conversion option is 7%. 1.Compute the liability and equity component of the convertible...
Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market...
Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market interest rate of 5.50 percent. The bonds had a total face value of $258,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
Anderson/ Thurow Company issued $1,000,000 of five year bonds on Jan 1, 20X1. The bonds carried...
Anderson/ Thurow Company issued $1,000,000 of five year bonds on Jan 1, 20X1. The bonds carried a face or coupon rate of 12% with interest to be paid semi-annually on June 30th and Dec 31st. At the issuance date, the market interest rate for such bonds was 10%. A. Calculate the issuance price for the bonds and show the journal entry to record their issuance. B. Provide an amortization table for the first two periods. C. Show the journal entries...
Exercise 10-3A Computing bond interest and price; recording bond issuance LO C2 Bringham Company issues bonds...
Exercise 10-3A Computing bond interest and price; recording bond issuance LO C2 Bringham Company issues bonds with a par value of $530,000 on their stated issue date. The bonds mature in 5 years and pay 10% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 12% (Table B.1. Table B. 2. Table 8.3. and Table 8.4) (Use appropriate factor(s) from the tables provided.) 1. What is the amount of each semiannual interest...
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is [Select ] DR Bonds Payable $787,500 CR Cash $787,500 DR Bonds Payable $750,000 CR Cash $750,000 DR Cash $787,500 CR Bonds Payable $787,500 DR Cash $750,000 CR Bonds Payable $750,000 Assuming interest is paid annually on De Brest payments? [Select] What is the journal entry recorded when...
First image is the question and the rest are the answer
options
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is: [Select] Assuming interest is paid annually on December 31st what is the journal entry to record interest payments? [Select] What is the journal entry recorded when the bonds mature? [Select] Question 3 1 pts If...
Question 2 1 pts Round answers to the nearest dollar and do not include $ sign. Bonds with a face value of $100,000 and a quoted price of 99 are issued at $ Bonds with a face value of $500,000 and a quoted price of 101 are issued at $ Bonds with a face value of $300,000 and a quoted price of 100 are issued at $ Question 3 1 pts If bonds with a face value of $750,000 and...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $275,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium Required 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market interest rate of 5.50 percent. The bonds had a total face value of $258,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
Exercise 10-3A Computing bond interest and price; recording bond issuance LO C2 Bringham Company issues bonds with a par value of $530,000 on their stated issue date. The bonds mature in 5 years and pay 10% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 12% (Table B.1. Table B. 2. Table 8.3. and Table 8.4) (Use appropriate factor(s) from the tables provided.) 1. What is the amount of each semiannual interest...
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