TB 14-90 Tulilo Corp Tulilo Corp issues $750,000, 10%, 15-year bonds. The current market rate is...
TB 14-90 Tulilo Corp
Tulilo Corp issues $750,000, 10%, 15-year bonds. The current market rate is 10%. The journal entry to record the semiannual interest payment, assuming the effective interest method is used, is
Multiple Choice
-
Cash 12,500 Bond Interest Expense 12,500 -
Bond Interest Expense 25,000 Cash 25,000 -
Bond Interest Expense 13,750 Bond Payable 13,750 -
Bond Interest Expense 13,750 Cash 13,750 -
Bond Interest Expense 25,000 Bond Payable 25,000
Homework Answers
SInce coupon rate = INtt. rate , therefore, face value = issue price
Bond Intt. exp. ( 750000 * 10 / 2 ) Debit $ 37500
Cash Credit $ 37500
| Bond Interest Expense | 3,7500 | |
| Cash | 3,7500 |
I think there is some problem in the option 13750 should be 37500.
Add Answer to:
TB 14-90 Tulilo Corp
Tulilo Corp issues $750,000, 10%, 15-year bonds. The current
market rate is...
Cramer Corp. issued $20,000,000 of 5-year, 9% bonds at a market (effective) interest rate of 10%,...
Cramer Corp. issued $20,000,000 of 5-year, 9% bonds at a market (effective) interest rate of 10%, receiving cash of $19,227.757. Interest on the bonds is payable semiannually. Journalize the entry to record the first semiannual interest payment, and the amortization of the bond discount, using the interest method?
Beaumont Corp. issues a 10-year semiannual convertible 6.3% bond with a face value of £2,980,000....
Please answer ASAP. I'll give you thumbs up. *IFRS*
Beaumont Corp. issues a 10-year semiannual convertible 6.3% bond with a face value of £2,980,000. The bond was issued at 103.8. Comparable bonds without a conversion feature would have required a return of 8.2%. Show all your work. 1. What was the market rate interest of the bonds (when they were sold)? PMT = FV Annual Interest rate 2. Determine how much of the proceeds would be allocated to debt and...
A company issued 9%, 15-year bonds with a par value of $560,000 that pay interest semiannually.
A company issued 9%, 15-year bonds with a par value of $560,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $25,200 Credit Cash $25,200. Debit Bond Interest Expense $50,400; credit Cash $50.400. Debit Bond Interest Payable $37,333, credit Cash $37,333 Debit Bond Interest Expense $510,000; credit Cash $510,000,
14 Ch. 9 8 10 90 min.) Help Save & Ex Submit On January 1, a...
14 Ch. 9 8 10 90 min.) Help Save & Ex Submit On January 1, a company issued and sold a $391,000,7%, 10 year bond payable and received proceeds of $386.000. Interesi payable each Jurve 30 and December 31. The company uses the straight line method to amortize the discount. The journal entry to record the first interest payment is Multiple Choice Debit Bond Interest Expense $13,685 Credit Cash $13.685 Debit Dond Interest Expense 5130 Credit Cash $13689 Credit Discount...
A company issued 7%, 15-year bonds with a par value of $600,000 that pay interest semiannually
A company issued 7%, 15-year bonds with a par value of $600,000 that pay interest semiannually. The market rate on the date of issuance was 7%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $21,000; credit Cash $21,000. 0 Debit Bond Interest Expense $550,000, credit Cash $550,000. Debit Bond Interest Expense $42,000 credit Cash $42,000, Debit Bond Interest Payable $40,000; credit Cash $40,000.No entry is needed, since no interest is paid until the bond is due.
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate...
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is [Select ] DR Bonds Payable $787,500 CR Cash $787,500 DR Bonds Payable $750,000 CR Cash $750,000 DR Cash $787,500 CR Bonds Payable $787,500 DR Cash $750,000 CR Bonds Payable $750,000 Assuming interest is paid annually on De Brest payments? [Select] What is the journal entry recorded when...
Hillside issues $4,000,000 of 6% , 15-year bonds dated January 1, 2017, that pay interest semiannually...
Hillside issues $4,000,000 of 6% , 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. 2d For each semiannual period, complete the table below to calculate the cash payment. 2( For each semiannual period, complete the table below to calculate the straight-line discount amortization. 20 For each semiannual period, complete...
Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments....
Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 %, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life...
BZ Corp issues 7%, 10-year bonds with a total face amount of $1,000,000. The market interest rate...
BZ Corp issues 7%, 10-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually. 8. $___________ What is the issue price of the bond? 9. $___________. When the company records the 2nd interest payment, how much will the company record for interest expense? 10. $___________. What is the bond liability (carrying amount) after the 2nd interest payment?
On January 1, a company issues bonds dated January 1 with a par value of $220,000....
On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9% and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the first interest payment using the effective interest method of amortization is (Rounded to the nearest dollar.) Multiple Choice Debt Bond Interest Expense 39157, de...
Please answer ASAP. I'll give you thumbs up. *IFRS*
Beaumont Corp. issues a 10-year semiannual convertible 6.3% bond with a face value of £2,980,000. The bond was issued at 103.8. Comparable bonds without a conversion feature would have required a return of 8.2%. Show all your work. 1. What was the market rate interest of the bonds (when they were sold)? PMT = FV Annual Interest rate 2. Determine how much of the proceeds would be allocated to debt and...
14 Ch. 9 8 10 90 min.) Help Save & Ex Submit On January 1, a company issued and sold a $391,000,7%, 10 year bond payable and received proceeds of $386.000. Interesi payable each Jurve 30 and December 31. The company uses the straight line method to amortize the discount. The journal entry to record the first interest payment is Multiple Choice Debit Bond Interest Expense $13,685 Credit Cash $13.685 Debit Dond Interest Expense 5130 Credit Cash $13689 Credit Discount...
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is [Select ] DR Bonds Payable $787,500 CR Cash $787,500 DR Bonds Payable $750,000 CR Cash $750,000 DR Cash $787,500 CR Bonds Payable $787,500 DR Cash $750,000 CR Bonds Payable $750,000 Assuming interest is paid annually on De Brest payments? [Select] What is the journal entry recorded when...
Hillside issues $4,000,000 of 6% , 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. 2d For each semiannual period, complete the table below to calculate the cash payment. 2( For each semiannual period, complete the table below to calculate the straight-line discount amortization. 20 For each semiannual period, complete...
Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 %, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life...
On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9% and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the first interest payment using the effective interest method of amortization is (Rounded to the nearest dollar.) Multiple Choice Debt Bond Interest Expense 39157, de...
Most questions answered within 3 hours.
-
1)
A student sitting on a chair on a circular platform of
negligible mass rotates freely...
asked 45 seconds ago -
Bird Enterprises has no debt. Its current total value is $47.2
million. Assume the company sells...
asked 3 minutes ago -
5. What is span of control? List three factors that may affect
span of control.
6....
asked 7 minutes ago -
How can you visualize anthranilic acid on TLC plates? How can
you visualize carboxylic acids on...
asked 6 minutes ago -
Scenario:
Anytown FD is a combination department with one station. Its
district is surrounded by four...
asked 19 minutes ago -
5. Ethics deals with the moral quality, fitness, or propriety of
a course of action that...
asked 20 minutes ago -
Single Plantwide Factory Overhead Rate
Kennedy Appliance Inc.’s Machining Department incurred $102,900
of factory overhead cost...
asked 22 minutes ago -
Two particles with charges +4e and -7e are
initially very far apart (effectively an infinite distance...
asked 34 minutes ago -
Holding all else constant, when teams face a binding roster
limit, the salary of players is...
asked 38 minutes ago -
1. When can parametric and non-parametric statistical tests be
used?
A. Parametric?
The independent variable is...
asked 46 minutes ago -
How can bacteria resist killing from cationic antimicrobial
peptides (CAMPs)? Choose all that apply. a. Use...
asked 53 minutes ago -
As an economic term, what is the definition of :Technological
Trends? Please try and keep the...
asked 55 minutes ago