Homework Answers
| Date | General Journal | Debit | Credit |
| $ | $ | ||
| Jan 1, 2023 | Bonds Payable | 66,000 | |
| Loss on Redemption of Bonds | 4,158 | ||
| Discount on Bonds Payable ( 5,940 * 20 % ) | 1,188 | ||
| Cash ( 66,000 * 104.5 % ) | 68,970 | ||
| To record retirement of bonds before maturity |
Discount on bonds payable as on Jan 1, 2017 = $ 330,000 x 3 % = $ 9,900
Amortization of bond discount over six years = $ 9,900 / 15 * 6 = $ 3,960
Unamortized bond discount as on Jan 1, 2023 = $ 9,900 - $ 3,960 = $ 5,940
Face value of bonds retired = $ 330,000 x 20 % = $ 66,000
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Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 The following...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies...
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Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 [The following...
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Required information Exercise 14-7 Straight-Line: Amortization table and bond interest expense LO P2 The following information...
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Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 [The following information applies to the questions displayed below On January 1, 2017, Shay issues $700,000 of 10%, 15-year bonds at a price of 9734 Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104½ All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Exercise 14-11 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2019, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January 1 2025, Shay retires these bonds by buying them on the open market for $731,500. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount 1. What is the amount...
Exercise 14-11 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2019, Shay Company issues $310,000 of 8%, 12-year bonds. The bonds sell for $299,150. Six years later, on January 1, 2025, Shay retires these bonds by buying them on the open market for $325,500. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount 1. What is the amount...
Quatro Co. issues bonds dated January 1, 2o17, with a par value of $850,000. The bonds' annual contract rate is 12%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $893,131. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over...
Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 The following information applies to the questions displayed below] Legacy issues $590,000 of 7.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $542,310 when the market rate is 10% Problem 10-4A Part 1 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet < 1 Record the issue...
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...
Required information Exercise 14-7 Straight-Line: Amortization table and bond interest expense LO P2 The following information applies to the questions displayed below) Duval Co. issues four-year bonds with a $100.000 par value on January 1, 2019, at a price of $95.952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31 Exercise 14-7 Part 2 2. Prepare journal entries to record the first two interest payments Answer is not complete. June 30, 2019...
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