Complete the amortization table for discount bond and premium bond.
Homework Answers
| SOLUTION : Discount Bond | |||||
| Schedule of Interest revenue and bond Discount Amortization | |||||
| Effective interest Method | |||||
| Date | Interest Payment @ 6% | Interest Expenses @ 7% | Bond Discount Amortization | Caryying Amount of Bonds | |
| 1/1/20 | $ 92,982.00 | ||||
| 6/30/20 | $ 6,000 | $ 6,509.00 | $ -509 | $ 93,491.00 | |
| 12/31/20 | $ 6,000 | $ 6,544.00 | $ -544 | $ 94,035.00 | |
| 6/30/21 | $ 6,000 | $ 6,582.00 | $ -582 | $ 94,617.00 | |
| 12/31/21 | $ 6,000 | $ 6,623.00 | $ -623 | $ 95,240.00 | |
| 6/30/22 | $ 6,000 | $ 6,667.00 | $ -667 | $ 95,907.00 | |
| 12/31/22 | $ 6,000 | $ 6,713.00 | $ -713 | $ 96,620.00 | |
| 6/30/23 | $ 6,000 | $ 6,763.00 | $ -763 | $ 97,383.00 | |
| 12/31/23 | $ 6,000 | $ 6,817.00 | $ -817 | $ 98,200.00 | |
| 6/30/24 | $ 6,000 | $ 6,874.00 | $ -874 | $ 99,074.00 | |
| 12/31/24 | $ 6,000 | $ 6,926.00 | $ -926 | $ 100,000.00 | |
| SOLUTION : Premium Bond | |||||
| Schedule of Interest revenue and bond Discount Amortization | |||||
| Effective interest Method | |||||
| Date | Interest Payment @ 6% | Interest Expenses @ 5% | Bond Discount Amortization | Caryying Amount of Bonds | |
| 1/1/20 | $ 107,720.00 | ||||
| 6/30/20 | $ 6,000 | $ 5,386.00 | $ 614 | $ 107,106.00 | |
| 12/31/20 | $ 6,000 | $ 5,355.00 | $ 645 | $ 106,461.00 | |
| 6/30/21 | $ 6,000 | $ 5,323.00 | $ 677 | $ 105,784.00 | |
| 12/31/21 | $ 6,000 | $ 5,289.00 | $ 711 | $ 105,073.00 | |
| 6/30/22 | $ 6,000 | $ 5,254.00 | $ 746 | $ 104,327.00 | |
| 12/31/22 | $ 6,000 | $ 5,216.00 | $ 784 | $ 103,543.00 | |
| 6/30/23 | $ 6,000 | $ 5,177.00 | $ 823 | $ 102,720.00 | |
| 12/31/23 | $ 6,000 | $ 5,136.00 | $ 864 | $ 101,856.00 | |
| 6/30/24 | $ 6,000 | $ 5,093.00 | $ 907 | $ 100,949.00 | |
| 12/31/24 | $ 6,000 | $ 5,051.00 | $ 949 | $ 100,000.00 | |
Add Answer to:
Complete the amortization table for discount bond and premium
bond.
Discount bond 007 Date Interest payment...
Exercise 9-74 Using a Premium Amortization Table (Straight Line) For Dingle Corporation, the following amortization table...
Exercise 9-74 Using a Premium Amortization Table (Straight Line) For Dingle Corporation, the following amortization table was prepared when $400,000 of 5-year, 7% bonds were sold on January 1, 2020, for $420,000. Period Cash Payment (Credit) Interest Expense (Debit) Premium on Bonds Payable (Debit) Premium on Bonds Payable Balance Carrying Value At issue $20,000 $420,000 06/30/20 $14,000 $12,000 $2,000 18,000 418,000 12/31/20 14,000 12,000 2,000 16,000 416,000 06/30/21 14,000 12,000 2,000 14,000 414,000 12/31/21 14,000 12,000 2,000 12,000 412,000 06/30/22...
Using a Discount Amortization Table (Straight Line) Panamint Candy Company prepared the following amortization table for...
Using a Discount Amortization Table (Straight Line) Panamint Candy Company prepared the following amortization table for $300,000 of 5-year, 9% bonds issued and sold by Panamint on january 1, 2021, for $285,000: Period Cash Payment (Credit) Interest Expense (Debit) Discount on Bonds Payable (Credit) Discount on Bonds Payable Balance Carrying Value At issue $15,000 $285,000 06/30/21 $13,500 $15,000 $1,500 13,500 286,500 12/31/21 13,500 15,000 1,500 12,000 288,000 06/30/22 13,500 15,000 1,500 10,500 289,500 12/31/22 13,500 15,000 1,500 9,000 291,000 06/30/23...
Please help with the journal entries for both the premium amortized and discount amortized. Thanks in...
Please help with the journal entries for
both the premium amortized and discount amortized. Thanks in
advance!
Flounder Co. sells $423,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Flounder buys back $131,130 worth of bonds for $136,130 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using...
Bond Amortization = Bond Discount or Premium / Number of Interest Periods Interest Paid = Face...
Bond Amortization = Bond Discount or Premium / Number of Interest Periods Interest Paid = Face Amount of Bonds x Stated Interest Rate Interest Expense = Interest Paid + Discount ( or – Premium) Amortization On October 1, 2018 ABC issued 5%, 10-year bonds with a face value of $4,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. What is interest expense for 2018? Assume ABC Company...
Cullumber Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on...
Cullumber Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds...
Partial Amortization Table for Conventional 4% Par Value Term Bonds Int. Exp Cash Paid-4% Amortized Discount...
Partial Amortization Table for Conventional 4% Par Value Term Bonds Int. Exp Cash Paid-4% Amortized Discount Unamort. Discount 4% P.V of Bonds 200,000,000 200,000,000 $ $ 8,000,000 $ 8,000,000 $ Date 1/1/20 12/31/20$ 12/31/21 12/31/22 12/31/23 12/30/24 12/30/25 12/30/26 12/31/27 12/30/28 12/30/29 Partial Amortization Table for 0% Zero-Percent Term Bonds (effectively yielding 6% interest) X*.55389 = 200,000,000 $200,000,000/ .55839 = $358,170,000 (rounded) $358,170,000 - $200,000,000 = $ 158,170,000 Int. Exp Cash Paid-0% Amortized Discount 6% Unamort. Discount 158,170,000 $ 146,170,000...
Bonita Co. sells $425,000 of 12% bonds on June 1, 2020. The bonds pay interest on...
Bonita Co. sells $425,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Bonita buys back $136,000 worth of bonds for $142,000 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at...
Smith Company borrows cash by issuing a bond payable with the following terms: $8,000,000, 8%...
Smith Company borrows cash by issuing a bond payable with the following terms: $8,000,000, 8% bond Issued on 1/1/21 Matures in 12 years Semi-annual interest payments on 6/30 and 12/31 of each year Market rate for bonds of this type was 7% at the time of their issue Required a. Compute the cash proceeds from the issuance of the bond. b. Create an effective interest amortization table in Excel for the entire life of the...
Problem 10-9AB Effective Interest: Amortization of bond premium; computing bond price LO P1, P6 Ellis issues...
Problem 10-9AB Effective Interest: Amortization of bond premium;
computing bond price LO P1, P6
Ellis issues 8.0%, five-year bonds dated January 1, 2018, with a
$430,000 par value. The bonds pay interest on June 30 and December
31 and are issued at a price of $466,682. The annual market rate is
6% on the issue date. (Table B.1, Table B.2, Table B.3, and Table
B.4) (Use appropriate factor(s) from the tables
provided.)
Required:
1. Compute the total bond interest expense...
Windsor Co. sells $451,000 of 8% bonds on March 1, 2020. The bonds pay interest on...
Windsor Co. sells $451,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method...
Please help with the journal entries for
both the premium amortized and discount amortized. Thanks in
advance!
Flounder Co. sells $423,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Flounder buys back $131,130 worth of bonds for $136,130 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using...
Cullumber Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds...
Partial Amortization Table for Conventional 4% Par Value Term Bonds Int. Exp Cash Paid-4% Amortized Discount Unamort. Discount 4% P.V of Bonds 200,000,000 200,000,000 $ $ 8,000,000 $ 8,000,000 $ Date 1/1/20 12/31/20$ 12/31/21 12/31/22 12/31/23 12/30/24 12/30/25 12/30/26 12/31/27 12/30/28 12/30/29 Partial Amortization Table for 0% Zero-Percent Term Bonds (effectively yielding 6% interest) X*.55389 = 200,000,000 $200,000,000/ .55839 = $358,170,000 (rounded) $358,170,000 - $200,000,000 = $ 158,170,000 Int. Exp Cash Paid-0% Amortized Discount 6% Unamort. Discount 158,170,000 $ 146,170,000...
Problem 10-9AB Effective Interest: Amortization of bond premium;
computing bond price LO P1, P6
Ellis issues 8.0%, five-year bonds dated January 1, 2018, with a
$430,000 par value. The bonds pay interest on June 30 and December
31 and are issued at a price of $466,682. The annual market rate is
6% on the issue date. (Table B.1, Table B.2, Table B.3, and Table
B.4) (Use appropriate factor(s) from the tables
provided.)
Required:
1. Compute the total bond interest expense...
Most questions answered within 3 hours.
-
A χ2-curve, looking at the relationship between age and hours
spent working at an office per...
asked 14 minutes ago -
The pH of a sample of water from a river is 5.0. A
sample of effluent from...
asked 59 minutes ago -
At the beginning of the period, the Fabricating Department
budgeted direct labor of $136,500 and equipment...
asked 1 hour ago -
Please answer all
____ 28. Rent control is usually
justified on the grounds that it protects...
asked 1 hour ago -
PARTS A-D HAVE BEEN ANSWERED. WAS TOLD TO REPOST. ONLY ANSWER
PARTS E and F.
A...
asked 1 hour ago -
2) You are given the task of finding a representation for a
circle in a drawing...
asked 2 hours ago -
STUDY QUESTION: Does use of diet drug fen-phen
(fenfluramine-phentermine) cause valvular heart disease?
HINT: Valvular heart...
asked 2 hours ago -
1. An object weighing 40 N rests on a surface. The coefficient
of friction is 0.35....
asked 4 hours ago -
Investor company owns 35% of investee company voting stock and
accounts for the investment under the...
asked 5 hours ago -
The number of major faults on a randomly chosen 1 km stretch of
highway has a...
asked 5 hours ago -
Consider the competitive environment of Starbuck's, Progressive
Insurance, a manufacturing firm with low turnover, or a...
asked 6 hours ago -
3. Gains from trade
Consider two neighbouring island countries called Euphoria and
Contente. They each have...
asked 8 hours ago