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17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is...
17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is payable annually eac...
17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is payable annually each December 31. The issue price was $9,683 based on an 10% effective interest rate. Tonika uses the effective-interest amortization method. The 2020 interest expense is closest to: a) $900. b) $871 c) $878. d) $975.
On January 1, 2019, Tonika Company issued a six-year, $10,000, 6% bond. The interest is payable...
On January 1, 2019, Tonika Company issued a six-year, $10,000, 6% bond. The interest is payable annually each December 31. The issue price was $9,523 based on an 7% effective interest rate. Tonika uses the effective-interest amortization method. The interest expense on the income statement for the year ended December 31, 2019 is closest to: Multiple Choice O $780. O $571. O $600. o $667
On January 1, 2019, Tonika Company issued a seven-year, $10,000, 8% bond. The interest is payable...
On January 1, 2019, Tonika Company issued a seven-year, $10,000, 8% bond. The interest is payable annually each December 31. The issue price was $9,496 based on an 9% effective interest rate. Tonika uses the effective-interest amortization method. The interest expense on the income statement for the year ended December 31, 2019 is closest to: Multiple Choice $855. $972. o $800. o o $760.
On January 1, 2019, Tonika Company issued a five-year, $10,000, 8% bond. The interest is payable...
On January 1, 2019, Tonika Company issued a five-year, $10,000, 8% bond. The interest is payable annually each December 31. The issue price was $9,611 based on an 9% effective interest rate. Tonika uses the effective-interest amortization method. The book value of the bonds as of December 31, 2019 is closest to: Multiple Choice Ο $9,676. Ο $8,811. Ο $65. Ο $9,546.
On January 1, 2019, Tonika Company issued a four-year, $12,100,7% bond. The interest is payable annually...
On January 1, 2019, Tonika Company issued a four-year, $12,100,7% bond. The interest is payable annually each December 31. The issue price was $11,518 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense? Multiple Choice 1,052 Interest expense Bond discount Cash 205 847 847 Interest expense Cash Interest expense Bond discount Cash 805 42
On January 1, 2019, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2019.
On January 1, 2019, Knorr Corporation issued $1,400,000 of 6%,
5-year bonds dated January 1, 2019. The bonds pay interest annually
on December 31. The bonds were issued to yield 7%. Bond issue costs
associated with the bonds totaled $22,107.40.Required:Prepare the journal entries to record the following:January 1, 2019Sold the bonds at an effective rate of 7%December 31, 2019First interest payment using the effective interest methodDecember 31, 2019Amortization of bond issue costs using the straight-line
methodDecember 31, 2020Second interest payment...
22. On January 1, 2019, a company issued $400,000 of 10-year, 12% bonds. The interest is...
22. On January 1, 2019, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semiannually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective interest method of amortization is used. Which of the following statements is incorrect? a) The market rate of interest on the sale date was less than the coupon rate of interest. b) The book value of the bond will decrease as the...
On January 1, 2019, a company issued $400,900 of 10-year, 12% bonds. The interest is payable...
On January 1, 2019, a company issued $400,900 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $415,403 based on a 10% market interest rate. The effective-interest method of amortization is used. Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2019? Multiple Choice 0 $20,770. $20,770. 0 $24,054. $24,054. o $20,045. o $24,924.
On January 1, 2016, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2020, for...
On January 1, 2016, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2020, for $103,604.78 minus bond issue costs of $3,000. The bonds carry a stated rate of interest of 13% payable annually on December 31 and were issued to yield 12%. The company uses the effective interest method of amortization. Required: Prepare the journal entries to record the issuance of the bonds, all the interest payments, premium amortizations, bond issue cost amortizations, and the repayment of the...
Metlock Inc. issued $730,000 of 10.40%, 19-year bonds on January 1, 2020, at 103. Interest is...
Metlock Inc. issued $730,000 of 10.40%, 19-year bonds on January 1, 2020, at 103. Interest is payable semi-annually on July 1 and January 1. Metlock Inc. uses the effective interest method of amortization for any bond premium or discount. Assume an effective yield of 10.00%. (With a market rate of 10.00%, the issue price would be slightly higher. For simplicity, ignore this.) A. Prepare the journal entry to record the issuance of the bonds. B. Prepare the journal entry to...
17. On January 1, 2019, Tonika Company issued a four-year, $10,000, 9% bond. The interest is payable annually each December 31. The issue price was $9,683 based on an 10% effective interest rate. Tonika uses the effective-interest amortization method. The 2020 interest expense is closest to: a) $900. b) $871 c) $878. d) $975.
On January 1, 2019, Tonika Company issued a six-year, $10,000, 6% bond. The interest is payable annually each December 31. The issue price was $9,523 based on an 7% effective interest rate. Tonika uses the effective-interest amortization method. The interest expense on the income statement for the year ended December 31, 2019 is closest to: Multiple Choice O $780. O $571. O $600. o $667
On January 1, 2019, Tonika Company issued a seven-year, $10,000, 8% bond. The interest is payable annually each December 31. The issue price was $9,496 based on an 9% effective interest rate. Tonika uses the effective-interest amortization method. The interest expense on the income statement for the year ended December 31, 2019 is closest to: Multiple Choice $855. $972. o $800. o o $760.
On January 1, 2019, Tonika Company issued a five-year, $10,000, 8% bond. The interest is payable annually each December 31. The issue price was $9,611 based on an 9% effective interest rate. Tonika uses the effective-interest amortization method. The book value of the bonds as of December 31, 2019 is closest to: Multiple Choice Ο $9,676. Ο $8,811. Ο $65. Ο $9,546.
On January 1, 2019, Tonika Company issued a four-year, $12,100,7% bond. The interest is payable annually each December 31. The issue price was $11,518 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense? Multiple Choice 1,052 Interest expense Bond discount Cash 205 847 847 Interest expense Cash Interest expense Bond discount Cash 805 42
On January 1, 2019, Knorr Corporation issued $1,400,000 of 6%,
5-year bonds dated January 1, 2019. The bonds pay interest annually
on December 31. The bonds were issued to yield 7%. Bond issue costs
associated with the bonds totaled $22,107.40.Required:Prepare the journal entries to record the following:January 1, 2019Sold the bonds at an effective rate of 7%December 31, 2019First interest payment using the effective interest methodDecember 31, 2019Amortization of bond issue costs using the straight-line
methodDecember 31, 2020Second interest payment...
22. On January 1, 2019, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semiannually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective interest method of amortization is used. Which of the following statements is incorrect? a) The market rate of interest on the sale date was less than the coupon rate of interest. b) The book value of the bond will decrease as the...
On January 1, 2019, a company issued $400,900 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $415,403 based on a 10% market interest rate. The effective-interest method of amortization is used. Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2019? Multiple Choice 0 $20,770. $20,770. 0 $24,054. $24,054. o $20,045. o $24,924.
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