Homework Answers
| Period end | Cash interest Received | Bond Interest Revenue | Discount Amortization | Carrying Value |
| January 1 | 58553901 | |||
| June 30 | 700000 | 1171078 | 471078 | 59024979 |
| December 31 | 700000 | 1180500 | 480500 | 59505479 |
| Date | General Journal | Debit | Credit | |
| June 30 | Cash | 700000 | =70000000*2%/2 | |
| Discount on bond investment | 471078 | |||
| Interest revenue | 1171078 | =58553901*4%/2 | ||
| Dec 31 | Cash | 700000 | ||
| Discount on bond investment | 480500 | |||
| Interest revenue | 1180500 | =(58553901+471078)*4%/2 |
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Check my work On January 1, a company purchased 2%, 10-year corporate bonds for $58,553,901 as...
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2
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See all photos + Add to On January 1, a company purchased 5%, 10 year corporate bonds for $55,537,005 as an investment. The bonds have a face amount of 560 million and are priced to yield 6%. Interest is paid semiannually 5.83 Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question...
help asap please
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2
Check my won On January 1, 2021, Bradley Recreational Products issued $150,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $145,153 to yield an annual return of 10%, (FY of $1. PV of S. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate. 2....
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