The founder of Frenza asks us to assist her in accounting and analysis of the corporation’s bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza. The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions.
Homework Answers
Par value of bonds = $100,000
Issue price of bonds = $88,000
Discount on bonds payable = Par value of bonds - Issue price of bonds
= 100,000 - 88,000
= $12,000
Journal
| JAN. 1, YEAR 1 | Cash | 88,000 | |
| Discount on bonds payable | 12,000 | ||
| Bonds payable | 100,000 |
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The founder of Frenza asks us to assist her in accounting and
analysis of the corporation’s...
The founder of Frenza asks us to assist her in accounting and analysis of the corporation’s...
The founder of Frenza asks us to assist her in accounting and
analysis of the corporation’s bonds, which have an annual contract
rate of 8%. She wants to know the business and accounting
implications of further debt issuances as she looks for ways to
finance the growth of Frenza. The following Tableau Dashboard is
provided to help us address her questions and provide
recommendations for her business decisions.
Frenza Bond Amortization (Carrying Value (Green)) (Unamortized
Discount (red))
Frenza: January 1,...
The founder of Frenza asks us to assist her in accounting and analysis of the corporation's...
The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza, The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. 1(a). Prepare journal entries to record the issuance of Frenza bonds on...
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The founder of Frenza asks us to assist her in accounting and
analysis of the corporation’s bonds, which have an annual contract
rate of 8%. She wants to know the business and accounting
implications of further debt issuances as she looks for ways to
finance the growth of Frenza. The following Tableau Dashboard is
provided to help us address her questions and provide
recommendations for her business decisions.
Frenza Bond Amortization (Carrying Value (Green)) (Unamortized
Discount (red))
Frenza: January 1,...
The founder of Frenza asks us to assist her in accounting and analysis of the corporation's bonds, which have an annual contract rate of 8%. She wants to know the business and accounting implications of further debt issuances as she looks for ways to finance the growth of Frenza, The following Tableau Dashboard is provided to help us address her questions and provide recommendations for her business decisions. 1(a). Prepare journal entries to record the issuance of Frenza bonds on...
On January 1, 2019, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest. (a) Prepare the general journal entry to record the issuance of the bonds on January 1,2019 the company uses the effective interest method of amortization of any discount or premium on bonds. Prepare the June 30, 2019 and the second interest payment on December 31, 2019. general journal entry to record the first semiannual interest payment on Credit Debit Date
On January 1, 2019,...
Exercise 10-5 Straight-Line: Recording bond...
Exercise 10-5 Straight-Line: Recording bond issuance and discount amortization LO P2 Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $110,000 and semiannual interest payments. (0) (1) (2) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Discount $6,933 6,066 5,199 Carrying Value $103,067 103,934 104,801 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The...
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