E14.7 (LO 1) (Amortization Schedule–Effective-Interest) Assume the same information as E14.6.
E14.7 need help
E14.6 (LO 1) (Amortization Schedule-Straight-Line) Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.
Instructions
Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to the nearest cent.)
E14.7 (LO 1) (Amortization Schedule–Effective-Interest) Assume the same information as E14.6.
Homework Answers
| Effective-Interest Method (12%) | |||||
| Year | Interest Payment | Interest Expense | Amortization of Bonds Discount | Bond Discount | Book Value |
| Jan 1, 2020 | 144,184 | 1,855,816 | |||
| Jan 1, 2021 | $200,000 | 222,698 | 22,698 | 121,486 | 1,878,514 |
| Jan 1, 2022 | $200,000 | 225,422 | 25,422 | 96,064 | 1,903,936 |
| Jan 1, 2023 | $200,000 | 228,472 | 28,472 | 67,592 | 1,932,408 |
| Jan 1, 2024 | $200,000 | 231,889 | 31,889 | 35,703 | 1,964,297 |
| Jan 1, 2025 | $200,000 | 235,716 | 35,703 | -0 | 2,000,000 |
| Working | |||||
| Interest Payment = $2,000,000 x .10 = $200,000 | |||||
| Interest Expense = $1,855,816 X .12. = $222,698 | |||||
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E14.7 (LO 1) (Amortization Schedule–Effective-Interest) Assume the same information as E14.6.
E14.6 (LO 1) (Amortization Schedule—Straight-Line) Devon Harris Company sells 10% bonds having a maturity value of...
E14.6 (LO 1) (Amortization Schedule—Straight-Line) Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Instructions Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to the nearest cent.)
(Amortization Schedule—Straight-Line) Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816....
(Amortization Schedule—Straight-Line) Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Instructions Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to the nearest cent.) prepare journal entries for the issuance of the bonds, 2 years of interest payments, and retirement at maturity. Assume the same information,Using 12% effective...
(Amortization Schedule Straight-Line) Devon Harris Company sells 10% bonds having a maturity value o$2,000,000 for $1,855,816
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Please explain how to find the interest
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Exercise 14-07 Pronghorn Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The...
Exercise 14-07
Pronghorn Company sells 8% bonds having a maturity value of
$2,000,000 for $1,848,366. The bonds are dated January 1, 2020, and
mature January 1, 2025. Interest is payable annually on January
1.
Determine the effective-interest rate. (Round
answer to 0 decimal places, e.g. 18%.)
The effective-interest rate
%
Set up a schedule of interest expense and discount amortization
under the effective-interest method. (Round
intermediate calculations to 5 decimal places, e.g. 1.25124 and
final answer to 0 decimal places,...
Pearl Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The bonds are...
Pearl Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. ✓ Your answer is correct. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate e Textbook and Media Your answer is partially correct. Set up a schedule of interest expense and discount amortization under the effective interest method. (Round intermediate calculations to...
Blue Company sells 10% bonds having a maturity value of $1,450,000 for $1,345,467. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determin...
Blue Company sells 10% bonds having a maturity value of $1,450,000 for $1,345,467. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) LINK TO TEXT Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Schedule...
Marin Company sells 8% bonds having a maturity value of $1,430,000 for $1,321,582. The bonds are...
Marin Company sells 8% bonds having a maturity value of $1,430,000 for $1,321,582. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate 10 % Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g....
Please explain how to find the interest
expense and the discount amortized.
Blue Company sells 9% bonds having a maturity value of $1,860,000 for $1,658,860. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Discount Amortization Straight-Line Method Interest Expense Cash Paid Discount Amortized Carrying Amount...
Exercise 14-07
Pronghorn Company sells 8% bonds having a maturity value of
$2,000,000 for $1,848,366. The bonds are dated January 1, 2020, and
mature January 1, 2025. Interest is payable annually on January
1.
Determine the effective-interest rate. (Round
answer to 0 decimal places, e.g. 18%.)
The effective-interest rate
%
Set up a schedule of interest expense and discount amortization
under the effective-interest method. (Round
intermediate calculations to 5 decimal places, e.g. 1.25124 and
final answer to 0 decimal places,...
Pearl Company sells 8% bonds having a maturity value of $2,000,000 for $1,848,366. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. ✓ Your answer is correct. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate e Textbook and Media Your answer is partially correct. Set up a schedule of interest expense and discount amortization under the effective interest method. (Round intermediate calculations to...
Blue Company sells 10% bonds having a maturity value of $1,450,000 for $1,345,467. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) LINK TO TEXT Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Schedule...
Marin Company sells 8% bonds having a maturity value of $1,430,000 for $1,321,582. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate 10 % Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g....
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