Crystal Glassware Company issues $1,043,000 of it's 13%, 10-year bonds at 99 on February 28, 2019....
Crystal Glassware Company issues $1,043,000 of it's 13%, 10-year bonds at 99 on February 28, 2019. The bonds pay interest on February 28 and August 31. Assume that Crystal uses the straight-line method for amortization. What net amount will be reported for the bonds on the August 31, 2019 balance sheet?
Homework Answers
Answer
- Net amount will be reported for the bonds on the August 31,
2019 balance sheet
= $ 1,033,092 or $ 1,033,091.50 - Working
|
A |
Face Value |
$1,043,000.00 |
|
|
B = A x 99/100 |
Issue Price |
$1,032,570.00 |
|
|
C = A - B |
Discount on Bonds Payable |
$10,430.00 |
|
|
D |
Life (years) |
10 |
|
|
E = D x 2 |
No of semi annual interest payments |
20 |
|
|
F = C/E |
Straight Line amortisation |
$521.50 |
|
|
G = C - F |
Unamortised discount balance on Aug 31, 2019 (after #1 semi annual payment) |
$9,908.50 |
|
|
H = A - G |
Net Amount at which the Bonds will be reported at |
$1,033,091.50 |
Answer |
Add Answer to:
Crystal Glassware Company issues $1,043,000 of it's 13%,
10-year bonds at 99 on February 28, 2019....
The Technology Company issues $506,000 of 10%, 10−year bonds at 108 on March 31, 2018. The...
The Technology Company issues $506,000 of 10%, 10−year bonds at 108 on March 31, 2018. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight−line method for amortization. Calculate the net balance that will be reported for the bonds on the September 30, 2018 balance sheet. (Round your intermediate answers to the nearest dollar.) a. $506,000 b. $546,480 c. $544,456 d. $548, 504
17) The Technology Company issues $517,000 of 11%, 10-year bonds at 104 on March 31, 2018....
17) The Technology Company issues $517,000 of 11%, 10-year bonds at 104 on March 31, 2018. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. Calculate the net balance that will be reported for the bonds on the September 30, 2018 balance sheet. (Round your intermediate answers to the nearest dollar.) A) $517,000 B) $537,680 C) $536,646 D) $538,714
1. If the market interest rate is 9% when Dolphin Corp. issues its bonds, will the bonds be price...
1. If the market interest rate is 9% when Dolphin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. If the market interest rate is 11% when Dolphin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. Assume that the issue price of the bonds is 96. Journalize the following bonds payable transactions a. Issuance of the bonds on February...
On June 30, Year 7, Princess Company issued $4,000,000 face value of 13%, 20-year bonds at...
On June 30, Year 7, Princess Company issued $4,000,000 face value of 13%, 20-year bonds at $4,300,920, a yield of 12%. Princess uses the effective-interest method to amortize bond premiums and discounts. The bonds pay interest semiannually on June 30 and December 31. Instructions: Round all answers to the nearest dollar! A. Prepare the journal entries to record the following transactions: The issuance of the bonds on June 30, Year 7 The payment of interest and the amortization of the...
On October 1, 2018, Renfro Company purchased to hold maturity, 4,000, $1,000, 9% Bonds for $3,900,000....
On October 1, 2018, Renfro Company purchased to hold maturity, 4,000, $1,000, 9% Bonds for $3,900,000. The bonds, which mature on February 1, 2027, pay interest semiannually on February 1 and August 1. Renfro uses the straight-line method of amortization. The fair value of the bonds at December 31, 2018 was $3,960,000. Renfro chooses the fair value option. The bonds should be reported in the December 31, 2018 balance sheet at
On January 1, 2019, Novak Corp. issued $3,020,000 face value, 9%, 10-year bonds at $3,222,644. This...
On January 1, 2019, Novak Corp. issued $3,020,000 face value,
9%, 10-year bonds at $3,222,644. This price resulted in an
effective-interest rate of 8% on the bonds. Novak uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on each January 1.
Prepare the journal entries to record the following
transactions. (Round answers to 0 decimal places, e.g.
15,250. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
(1)
The...
1 2 Weiskopf Corporation has $8,000,000 of 9 12 percent, twenty-five-year bonds dated February 28, with...
1
2
Weiskopf Corporation has $8,000,000 of 9 12 percent, twenty-five-year bonds dated February 28, with interest payable on August 31 and February 28. The company's fiscal year ends on November 30. It uses the straight-line method to amortize bond premiums or discounts. Assume the bonds are issued at 103.5 on February 28. Prepare general journal entries for February 28, August 31, and November 30. Assume the bonds are issued at 96.5 on February 28. Prepare general journal entries for...
On June 30, 2017, Pina Company issued $3,700,000 face value of 13%, 20-year bonds at $3,978,349,...
On June 30, 2017, Pina Company issued $3,700,000 face value of 13%, 20-year bonds at $3,978,349, a yield of 12% Pina uses the effective interest method to amortire bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to decimal places, e 38,548. If no entry is required, select "No Entry for the accoun tities and enter for the amounts. Credit account titles are...
On June 30, 2020, Mischa Auer Company issued $4,000,000 face value of 13%, 20-year bonds at...
On June 30, 2020, Mischa Auer Company issued $4,000,000 face
value of 13%, 20-year bonds at $4,300,918, a yield of 12%. Auer
uses the effective-interest method to amortize bond premium or
discount. The bonds pay semiannual interest on June 30 and December
31.
I just need help with #3 in the last part
Prepare the journal entries to record the following transactions. (Round answer to o decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the...
4) Atlantic Company issues 10-year bonds, as follows: Bonds are dated to be issued on: Bonds are ...
4) Atlantic Company issues 10-year bonds, as follows: Bonds are dated to be issued on: Bonds are issued on Par value of bonds: Stated annual interest rate: Price at date of issue: Semiannual interest payments: Bond issue costs incurred: Amortization method used: January 1, 20x1 June 1, 20x1 $900,000 4% 101.15 January 1 and July 1 $16,100 Straight-line Straight-line amortization of bond issue costs and premium or discount amortization are recorded once ayear, at year-end. SEE NEXT PAGE FOR REQUIREMENTS...
17) The Technology Company issues $517,000 of 11%, 10-year bonds at 104 on March 31, 2018. The bonds pay interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. Calculate the net balance that will be reported for the bonds on the September 30, 2018 balance sheet. (Round your intermediate answers to the nearest dollar.) A) $517,000 B) $537,680 C) $536,646 D) $538,714
1. If the market interest rate is 9% when Dolphin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. If the market interest rate is 11% when Dolphin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. Assume that the issue price of the bonds is 96. Journalize the following bonds payable transactions a. Issuance of the bonds on February...
On January 1, 2019, Novak Corp. issued $3,020,000 face value,
9%, 10-year bonds at $3,222,644. This price resulted in an
effective-interest rate of 8% on the bonds. Novak uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on each January 1.
Prepare the journal entries to record the following
transactions. (Round answers to 0 decimal places, e.g.
15,250. Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
(1)
The...
1
2
Weiskopf Corporation has $8,000,000 of 9 12 percent, twenty-five-year bonds dated February 28, with interest payable on August 31 and February 28. The company's fiscal year ends on November 30. It uses the straight-line method to amortize bond premiums or discounts. Assume the bonds are issued at 103.5 on February 28. Prepare general journal entries for February 28, August 31, and November 30. Assume the bonds are issued at 96.5 on February 28. Prepare general journal entries for...
On June 30, 2017, Pina Company issued $3,700,000 face value of 13%, 20-year bonds at $3,978,349, a yield of 12% Pina uses the effective interest method to amortire bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to decimal places, e 38,548. If no entry is required, select "No Entry for the accoun tities and enter for the amounts. Credit account titles are...
On June 30, 2020, Mischa Auer Company issued $4,000,000 face
value of 13%, 20-year bonds at $4,300,918, a yield of 12%. Auer
uses the effective-interest method to amortize bond premium or
discount. The bonds pay semiannual interest on June 30 and December
31.
I just need help with #3 in the last part
Prepare the journal entries to record the following transactions. (Round answer to o decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the...
4) Atlantic Company issues 10-year bonds, as follows: Bonds are dated to be issued on: Bonds are issued on Par value of bonds: Stated annual interest rate: Price at date of issue: Semiannual interest payments: Bond issue costs incurred: Amortization method used: January 1, 20x1 June 1, 20x1 $900,000 4% 101.15 January 1 and July 1 $16,100 Straight-line Straight-line amortization of bond issue costs and premium or discount amortization are recorded once ayear, at year-end. SEE NEXT PAGE FOR REQUIREMENTS...
Most questions answered within 3 hours.
-
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 2 minutes ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 1 hour ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 3 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 4 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 5 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 6 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 5 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 7 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 7 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 7 hours ago -
Pattern Corporation acquired all of Science
Company's outstanding stock on January 1, 2016 for $600,000 cash....
asked 7 hours ago -
Here are all accounts Tyler Co. maintains.
Tax expenses $4,750
Common stocks $48,840
SG&A expenses $2,500...
asked 7 hours ago