Homework Answers
Cash a/c ....Dr. 480000
Discount on bonds payable a/c....Dr 20000
To bonds payable a/c. 500000
(Being bonds issued with discount)
Total discount= 20000
Total periods=20×2 per year= 40 periods
Semi annual discount=20000/40=5000t
Total interest = semi annual discount+ interest
=500+20000(500000÷2×8%)=20500
Interest expense a/c....Dr. 20500
To cash a/c. 20000
To discount on bonds payable a/c 500
(Being interest expense )
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ccounting II Fall 2019 Evening Name: Gina Kazmaier am 1 oblem 5: Fish All Day, LLC...
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1.
2.
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for $419,000. All interest is accounted for and paid through
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method is used to amortize any bond discount.
1. What is the amount of the discount on the bonds
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2. How much amortization...
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...
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1.
2.
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