2. On April 1, 2014, Smart Way Freight Company sold $200,000 of its 9.5 percent, 20-year...
2. On April 1, 2014, Smart Way Freight Company sold $200,000 of its 9.5 percent, 20-year bonds at 106. The semiannual interest payment dates are April 1 and October 1. The market interest rate is 8.9 percent. The firm’s fiscal year ends March 31. Prepare journal entries to record the sale of the bonds on April 1, the accrual of interest and amortization of premium on March 31, and the first interest payment on October 1. Use the effective interest method to amortize the premium.
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2. On April 1, 2014, Smart Way Freight Company sold $200,000 of
its 9.5 percent, 20-year...
3. On April 1, 2018, the Mayfair Drapery Co. sold $ 500,000 of its 9.5%, twenty-...
3. On April 1, 2018, the Mayfair Drapery Co. sold $ 500,000 of its 9.5%, twenty- year bonds at 106. The semi-annual interest payment dates are April 1 and October 1. The effective interest rate is approximately 8.9%. The company's fiscal year ends September 30th. Prepare journal entries to record the sale of the bonds on April 1, the accrual of interest and amortization of premium on September 30, and the first interest payment on October 1. Use the effective...
*Problem 14-7 On April 1, 2017, Sarasota Company sold 16,200 of its 12%, 15-year, $1,000 face value bonds at 98, Interest payment dates are April 1 and October 1, and the company uses the straight-li...
*Problem 14-7 On April 1, 2017, Sarasota Company sold 16,200 of its 12%, 15-year, $1,000 face value bonds at 98, Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2018, Sarasota took advantage of favorable prices of its stock to extinguish 7,500 of the bonds by issuing 247,500 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
On April 1, 2017, Teal Company sold 13,500 of its 11%, 15-year, $1,000 face value bonds...
On April 1, 2017, Teal Company sold 13,500 of its 11%, 15-year,
$1,000 face value bonds at 97. Interest payment dates are April 1
and October 1, and the company uses the straight-line method of
bond discount amortization. On March 1, 2018, Teal took advantage
of favorable prices of its stock to extinguish 6,300 of the bonds
by issuing 207,900 shares of its $10 par value common stock. At
this time, the accrued interest was paid in cash. The company’s...
On April 1, 2020, Headland Company sold 29,700 of its 11%, 15-year, $1,000 face value bonds...
On April 1, 2020, Headland Company sold 29,700 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Headland took advantage of favorable prices of its stock to extinguish 5,700 of the bonds by issuing 188,100 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company’s...
On April 1, 2020, Sweet Company sold 32,400 of its 11%, 15-year, $1,000 face value bonds...
On April 1, 2020, Sweet Company sold 32,400 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Sweet took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company’s...
On April 1, 2020, Sheffield Company sold 22,500 of its 11%, 15-year, $1,000 face value bonds...
On April 1, 2020, Sheffield Company sold 22,500 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Sheffield took advantage of favorable prices of its stock to extinguish 5,400 of the bonds by issuing 178,200 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company’s...
P14.7 (LO 1, 2 ) (Entries for Life Cycle of Bonds) On April 1, 2020, Seminole...
P14.7 (LO 1, 2 ) (Entries for Life Cycle of Bonds) On April 1, 2020, Seminole Company sold 15,000 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Seminole took advantage of favorable prices of its stock to extinguish 6,000 of the bonds by issuing 200,000 shares of its $10 par value common stock. At...
b.How much is the amortization? c. How much is interest expense? LO5 Straight-Line Method E 10....
b.How much is the amortization? c. How much is interest expense? LO5 Straight-Line Method E 10. Nina Corporation issued $8,000,000 in 6 percent, five-year bonds on March 1, 2010, at 92. The semiannual interest payment dates are September 1 and March 1. Prepare entries in journal form for the issue of the bonds by Nina on March 1, 2010, and the first two interest payments on September 1, 2010 and March 1, 201l. Use the straight-line method and ignore year-end...
Problem 14-7 On April 1, 2017, Martinez Company sold 18,000 of its 12%, 15-year, $1,000 face...
Problem 14-7 On April 1, 2017, Martinez Company sold 18,000 of its 12%, 15-year, $1,000 face value bonds at 96. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2018, Martinez took advantage of favorable prices of its stock to extinguish 6,600 of the bonds by issuing 217,800 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
Please show all work. Thanks! On April 1, 2020, Bonita Company sold 21,600 of its 10%,...
Please show all work. Thanks!
On April 1, 2020, Bonita Company sold 21,600 of its 10%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Bonita took advantage of favorable prices of its stock to extinguish 6,300 of the bonds by issuing 207,900 shares of its $10 par value common stock. At this time, the accrued interest was...
3. On April 1, 2018, the Mayfair Drapery Co. sold $ 500,000 of its 9.5%, twenty- year bonds at 106. The semi-annual interest payment dates are April 1 and October 1. The effective interest rate is approximately 8.9%. The company's fiscal year ends September 30th. Prepare journal entries to record the sale of the bonds on April 1, the accrual of interest and amortization of premium on September 30, and the first interest payment on October 1. Use the effective...
*Problem 14-7 On April 1, 2017, Sarasota Company sold 16,200 of its 12%, 15-year, $1,000 face value bonds at 98, Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2018, Sarasota took advantage of favorable prices of its stock to extinguish 7,500 of the bonds by issuing 247,500 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
On April 1, 2017, Teal Company sold 13,500 of its 11%, 15-year,
$1,000 face value bonds at 97. Interest payment dates are April 1
and October 1, and the company uses the straight-line method of
bond discount amortization. On March 1, 2018, Teal took advantage
of favorable prices of its stock to extinguish 6,300 of the bonds
by issuing 207,900 shares of its $10 par value common stock. At
this time, the accrued interest was paid in cash. The company’s...
b.How much is the amortization? c. How much is interest expense? LO5 Straight-Line Method E 10. Nina Corporation issued $8,000,000 in 6 percent, five-year bonds on March 1, 2010, at 92. The semiannual interest payment dates are September 1 and March 1. Prepare entries in journal form for the issue of the bonds by Nina on March 1, 2010, and the first two interest payments on September 1, 2010 and March 1, 201l. Use the straight-line method and ignore year-end...
Problem 14-7 On April 1, 2017, Martinez Company sold 18,000 of its 12%, 15-year, $1,000 face value bonds at 96. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2018, Martinez took advantage of favorable prices of its stock to extinguish 6,600 of the bonds by issuing 217,800 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
Please show all work. Thanks!
On April 1, 2020, Bonita Company sold 21,600 of its 10%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Bonita took advantage of favorable prices of its stock to extinguish 6,300 of the bonds by issuing 207,900 shares of its $10 par value common stock. At this time, the accrued interest was...
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