Homework Answers
Solution:
| Blossom Corporation | ||||
| Bond Amortization Table | ||||
| Effective interest method - Semi annual interest payments | ||||
| 1% bonds issued at market rate of 3% | ||||
| Date | Interest payment | Interest expense | Discount Amortization | Bond Amortized cost |
| 1-Jan-21 | $1,941,537 | |||
| 1-Jul-21 | $11,000 | $29,123 | $18,123 | $1,959,660 |
| 1-Jan-22 | $11,000 | $29,395 | $18,395 | $1,978,055 |
| 1-Jul-22 | $11,000 | $29,671 | $18,671 | $1,996,726 |
Add Answer to:
Blossom Corporation issued $2.22 million of 7-year, 1% bonds dated January 1, 2021, for $1.941,537. The...
please help me solve this question Blossom Cars Co. issued $2.16 million of 5%, 5-year bonds...
please help me solve this question
Blossom Cars Co. issued $2.16 million of 5%, 5-year bonds on January 1, 2021. The bonds were dated January 1 and pay interest annually. The bonds are secured with real estate holdings. The market interest rate was 4% for these bonds. Blossom has a calendar year end. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 Calculate the...
On January 1, 2021, Feather Pillows, Inc. issued 8% bonds dated January 1, with a face...
On January 1, 2021, Feather Pillows, Inc. issued 8% bonds dated January 1, with a face amount of $800,000. The bonds mature on December 31, 2025 (5 years) and pay interest semi-annually. The market yield for bonds of similar risk and maturity was 6% when the bonds were issued. Prepare, in good form, all the journal entries and amortization schedule for the bonds.
Blossom Lake Corp. issues a $660,000, 4-year, 3% note payable on March 31, 2021. The terms...
Blossom Lake Corp. issues a $660,000, 4-year, 3% note payable on March 31, 2021. The terms provide for fixed principal payments annually of $165,000. Prepare the journal entries to record the note on March 31, 2021, and the first payment on March 31, 2022. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles...
Specialty Autoparts Inc. issued $160,000 of 7%, 10-year bonds at a price of 86 on January...
Specialty Autoparts Inc. issued $160,000 of 7%, 10-year bonds at a price of 86 on January 31, 2017. The market interest rate at the date of issuance was 9%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Specialty's issuance of the bonds on January 31, 2017, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2017. Explanations...
On July 1, 2017, Global Satellites Corporation issued $1,280,000 of 10-year, 7% bonds to yield a...
On July 1, 2017, Global Satellites Corporation issued $1,280,000 of 10-year, 7% bonds to yield a market interest rate of 6%. The bonds pay semi annual interest on July 1 and January 1. Global has a December 31 year end. When the bonds were issued, Global received $1,375,221 Click here to view the factor table. (a) Prepare an amortization table through January 1, 2019 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, e.g. 5,275.)...
3. On January 1, 2021 Clayton Co. issued $1,300,000 of 20-year, 9% bonds, for $1,225,000. Interest...
3. On January 1, 2021 Clayton Co. issued $1,300,000 of 20-year, 9% bonds, for $1,225,000. Interest is payable annually on January 1. The company uses the straight-line method to amortization any bond discount or premium REQUIRED (16 points) Prepare journal entries to record the following (round to nearest dollar.) Jan 1, 2021 Issuance of the bonds on January 1, 2021 Dec 31, 2021 Recorded accrued interest Jan 1, 2022 Payment of interest Jan 1, 2022 After payment of interest on...
3. On January 1, 2021 Clayton Co. issued $1,300,000 of 20-year, 9% bonds, for $1,225,000. Interest...
3. On January 1, 2021 Clayton Co. issued $1,300,000 of 20-year, 9% bonds, for $1,225,000. Interest is payable annually on January 1. The company uses the straight-line method to amortization any bond discount or premium REQUIRED (16 points) Prepare journal entries to record the following (round to nearest dollar.) Jan 1, 2021 Issuance of the bonds on January 1, 2021 Dec 31, 2021 Recorded accrued interest Jan 1, 2022 Payment of interest Jan 1, 2022 After payment of interest on...
Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of...
Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $590,000 and a coupon interest rate of 6%, with interest payable semi-annually. (a) Prepare a partial bond amortization table for the first two interest payments assuming that interest is paid on July 1 and January 1 and that the bonds sold when the market interest rate was 5%. (Round answers to o decimal places, e.g. 5,255.) CARVEL CORP. Bond Premium Amortization On January 1,...
Question 3: (20 points) On January 1, 2023, Manson Corporation issued $3-million 10-year bonds. The bonds...
Question 3: (20 points) On January 1, 2023, Manson Corporation issued $3-million 10-year bonds. The bonds pay semi-annual interest on July 1 and January 1, and Manson has a December 31, year-end. Presented below is a partial amortization table: Semi Annual Interest Period Interest payment Interest expense Amortization Bond Amortized Cost Jan 1, 2023 [1] July 1, 2023 $75,000 [2] $10,095 3,235,177 Jan 1, 2024 [3] 64,704 10,296 3,224,881 July 1, 2024 75,000 64,498 10,502 3,214,379 Jan 1, 2024 75,000...
Chowan Corporation issued $154,000 of 7% bonds dated January 1, 2016, for $148,815.79 on January 1,...
Chowan Corporation issued $154,000 of 7% bonds dated January 1, 2016, for $148,815.79 on January 1, 2016. The bonds are due December 31, 2019, were issued to yield 8%, and pay interest semiannually on June 30 and December 31. Chowan uses the effective interest method of amortization. Required: Prepare the journal entries to record the issue of the bonds on January 1, 2016, and the interest payments on June 30, 2016, December 31, 2016, and June 30, 2017. In addition,...
please help me solve this question
Blossom Cars Co. issued $2.16 million of 5%, 5-year bonds on January 1, 2021. The bonds were dated January 1 and pay interest annually. The bonds are secured with real estate holdings. The market interest rate was 4% for these bonds. Blossom has a calendar year end. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 Calculate the...
Blossom Lake Corp. issues a $660,000, 4-year, 3% note payable on March 31, 2021. The terms provide for fixed principal payments annually of $165,000. Prepare the journal entries to record the note on March 31, 2021, and the first payment on March 31, 2022. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles...
Specialty Autoparts Inc. issued $160,000 of 7%, 10-year bonds at a price of 86 on January 31, 2017. The market interest rate at the date of issuance was 9%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Specialty's issuance of the bonds on January 31, 2017, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2017. Explanations...
On July 1, 2017, Global Satellites Corporation issued $1,280,000 of 10-year, 7% bonds to yield a market interest rate of 6%. The bonds pay semi annual interest on July 1 and January 1. Global has a December 31 year end. When the bonds were issued, Global received $1,375,221 Click here to view the factor table. (a) Prepare an amortization table through January 1, 2019 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, e.g. 5,275.)...
3. On January 1, 2021 Clayton Co. issued $1,300,000 of 20-year, 9% bonds, for $1,225,000. Interest is payable annually on January 1. The company uses the straight-line method to amortization any bond discount or premium REQUIRED (16 points) Prepare journal entries to record the following (round to nearest dollar.) Jan 1, 2021 Issuance of the bonds on January 1, 2021 Dec 31, 2021 Recorded accrued interest Jan 1, 2022 Payment of interest Jan 1, 2022 After payment of interest on...
3. On January 1, 2021 Clayton Co. issued $1,300,000 of 20-year, 9% bonds, for $1,225,000. Interest is payable annually on January 1. The company uses the straight-line method to amortization any bond discount or premium REQUIRED (16 points) Prepare journal entries to record the following (round to nearest dollar.) Jan 1, 2021 Issuance of the bonds on January 1, 2021 Dec 31, 2021 Recorded accrued interest Jan 1, 2022 Payment of interest Jan 1, 2022 After payment of interest on...
Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $590,000 and a coupon interest rate of 6%, with interest payable semi-annually. (a) Prepare a partial bond amortization table for the first two interest payments assuming that interest is paid on July 1 and January 1 and that the bonds sold when the market interest rate was 5%. (Round answers to o decimal places, e.g. 5,255.) CARVEL CORP. Bond Premium Amortization On January 1,...
Most questions answered within 3 hours.
-
Preparation of Benzoic Acid using a Grignard Reagent URGENT
1. During your Grignard formation, a small...
asked 14 minutes ago -
A uniform magnetic field is perpendicular to the plane of a wire
loop. If the loop...
asked 13 minutes ago -
At the peak of your career, your were earning $120,000 and
holding a top level position....
asked 17 minutes ago -
. A permanent magnet is dropped south-end-down through a horizontal
circular coil with a radius of...
asked 19 minutes ago -
Bernie's Beverages purchased some fixed assets classified as
5-year property for MACRS. The assets cost $28,000....
asked 33 minutes ago -
How many ATPs are produced from the catabolism of a 10-C
molecule of fatty acid under...
asked 37 minutes ago -
Before practicing a routine on the rings, a 64.8 kg gymnast
hangs motionless, with one hand...
asked 39 minutes ago -
If the K b of a weak base is 6.3 × 10 − 6 , what...
asked 45 minutes ago -
Which of the following is the minimum amount of moles of NaOH
that must be added...
asked 49 minutes ago -
Stories about organizational ________ provide important clues
about cultural values and norms.
a. myths
b. heroes...
asked 51 minutes ago -
Explain the criteria used in selecting a target market
BUS220 Retail Management, thank you!
asked 52 minutes ago -
Convert/Calculate the following:
Determine the identity of an elemental gas if 4.55 L weighing
35.4g, under...
asked 56 minutes ago