Homework Answers
| Date | General Journal | Debit | Credit |
| December 31,2013 | Interest expense | 1150 | |
| Discount on bonds payable | 150 | ||
| Interest payable | 1000 |
| Workings: | ||
| Discount on issue | 9000 | =200000-191000 |
| Semi-annual periods | 20 | =10*2 |
| Semi-annual discount amortization | 450 | =9000/20 |
| Semi-annual cash interest | 3000 | =200000*3%*6/12 |
| Interest and discount is to be amortized for 2 months | ||
| Interest payable for 2 months | 1000 | =3000*2/6 |
| Discount amortized for 2 months | 150 | =450*2/6 |
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June 30, 201 ponts 7. On November 1, 2013, Archangel Services issued $200,000 of 10-year bonds...
please answer the following questions. (journal entries) 1. On July 1, 2013. Avery Services issued a...
please answer the following questions.
(journal entries)
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please write the joirnal entries with the debit and credit. 1. On July 1, 2013. Avery Services issued a 4% long-term...
please write the joirnal entries with the debit and
credit.
1. On July 1, 2013. Avery Services issued a 4% long-term note payable for S10,000. It is payable over a 5-year term in $2,000 principal installments on July 1 of each year. Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period. Please provide the journal entry needed on July 1, 2014 when the first installment payment is made. (4 points) 2....
Required (1) Assume the bonds are issued at 103 on June 1 to yield an effective...
Required (1) Assume the bonds are issued at 103 on June 1 to yield an effective inter- est rate of 10.1 percent. Prepare entries in journal form for June 1, 20x7, November 30, 20x7, and May 31, 20x8. (Round amounts to the nearest dollar.) 2. Assume the bonds are issued at 97 on June 1 to yield an effective interest rate of 10.9 percent. Prepare entries in journal form for June 1, 20x7. November 30, 20x7, and May 31, 20x8....
Question 3 (6 points) On June 30, 2016, Alpha Corporation issued $200,000 of 10% ten-year bonds...
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22. Mozart Inc. issued 5% bonds with a face amount of $500,000 on November 1, 2018....
22. Mozart Inc. issued 5% bonds with a face amount of $500,000 on November 1, 2018. The bonds sold for a price to yield the market rate of 6%. The bonds mature October 31, 2038 (20 years). Interest is paid semiannually on April 30 and October 31. The fiscal year ends December 31 for Mozart. Show your calculations. Required: 1) Determine the price of the bonds issued on November 1, 2018, Show your computations. 2) Prepare the journal entry to...
On November 1, 2018, Natalia Corporation issued $200,000 8% four year bonds, where interest is payable...
On November 1, 2018, Natalia Corporation issued $200,000 8% four year bonds, where interest is payable semi-annually on April 30 and October 31. The bonds were dated November 1, 2018 and mature on November 1, 2022. The accounting period ends on December 31. The market rate on date of issue was 10%. 1. Calculate the proceeds of the bond (price) on November 1, 2018. 2. Prepare a full amortization schedule using the effective-interest method of amortization, starting your schedule at...
The Gorman Group issued $840,000 of 11% bonds on June 30, 2013, for $912,072. The bonds...
The Gorman Group issued $840,000 of 11% bonds on June 30, 2013,
for $912,072. The bonds were dated on June 30 and mature on June
30, 2033 (20 years). The market yield for bonds of similar risk and
maturity is 10%. Interest is paid semiannually on December 31 and
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Required:
Complete the below table to record the company's journal entry.
(Enter interest rate to 1 decimal place.)
1.
Prepare the journal entry to record their issuance by...
Martinez Inc. issued $3,800,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus...
Martinez Inc. issued $3,800,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,425,000 of these bonds were converted into 26,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest...
Sage Inc. issued $3,670,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus...
Sage Inc. issued $3,670,000 of 10%, 10-year convertible bonds on June 1, 2020, at 98 plus accrued interest. The bonds were dated April 1, 2020, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,376,250 of these bonds were converted into 36,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. (a) Prepare the entry to record the interest...
please answer the following questions.
(journal entries)
1. On July 1, 2013. Avery Services issued a 4% long-term note payable for S10,000. It is payable over a 5-year term in $2,000 principal installments on July 1 of each year. Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period. Please provide the journal entry needed on July 1, 2014 when the first installment payment is made. (4 points) 2. Paris Company buys...
please write the joirnal entries with the debit and
credit.
1. On July 1, 2013. Avery Services issued a 4% long-term note payable for S10,000. It is payable over a 5-year term in $2,000 principal installments on July 1 of each year. Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period. Please provide the journal entry needed on July 1, 2014 when the first installment payment is made. (4 points) 2....
Required (1) Assume the bonds are issued at 103 on June 1 to yield an effective inter- est rate of 10.1 percent. Prepare entries in journal form for June 1, 20x7, November 30, 20x7, and May 31, 20x8. (Round amounts to the nearest dollar.) 2. Assume the bonds are issued at 97 on June 1 to yield an effective interest rate of 10.9 percent. Prepare entries in journal form for June 1, 20x7. November 30, 20x7, and May 31, 20x8....
Question 3 (6 points) On June 30, 2016, Alpha Corporation issued $200,000 of 10% ten-year bonds at 103 on its semiannual interest date. Alpha uses the straight-line method for amortization. Use this information to determine the carrying value of this bond issue after adjusting entries have been made on June 30, 2019? Round your answer to the nearest whole dollar. Question 4 (6 points) On August 1, 2016, Alpha Company entered into a capital lease, and correctly recorded the leased...
The Gorman Group issued $840,000 of 11% bonds on June 30, 2013,
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maturity is 10%. Interest is paid semiannually on December 31 and
June 30.
Required:
Complete the below table to record the company's journal entry.
(Enter interest rate to 1 decimal place.)
1.
Prepare the journal entry to record their issuance by...
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