Homework Answers
Requirement:
| IVANHOE COMPANY | ||||
| Bond premium amortization table | ||||
| Effective interest method-Annual interest payments | ||||
| 6% Bonds issued at market rate of 5% | ||||
| Date | Interest payment | Interest Expense | Premium amortization | Bond amortization |
| Jan.01 2021 | $ 784,558 | |||
| Jan.01 2022 | $ 45,120 | $ 38,608.40 | $ 6,511.60 | $ 778,046 |
| Jan.01 2023 | $ 45,120 | $ 38,608.40 | $ 6,511.60 | $ 771,535 |
| Jan.01 2024 | $ 45,120 | $ 38,608.40 | $ 6,511.60 | $ 765,023 |
| Jan.01 2025 | $ 45,120 | $ 38,608.40 | $ 6,511.60 | $ 758,512 |
| Jan.01 2026 | $ 45,120 | $ 38,608.40 | $ 6,511.60 | $ 752,000 |
Note:
Premium amortization = ($ 784,558 - $ 752,000)/5 = $ 6,511.60
Interest payment = $ 752,000 * 6% = $ 45,120
Interest expense = $45,120- $ 6,511.60 = $38,608.40
Add Answer to:
help on second pic please.
Question UI 8 2.5/10 Ivanhoe Inc. issues $752,000 of 5-year, 6%...
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...
please do calculate bond amortization cost as well, as its not fully showing in last pic....
please do calculate bond amortization cost as well, as its not
fully showing in last pic. Thanks!
On January 1, 2021, Oriole Ltd, issued $440,000 of 5%, 5-year bonds. The bonds were issued to yield a market interest rate of 6%. Oriole's year end is December 31. On January 1, 2023 immediately after making and recording the semi-annual interest payment, Oriole redeemed the bonds. A partial bond amortization schedule is presented below. Semi-Annual Interest Interest Bond Interest Period Payment Expense...
Ivanhoe Co. sells $537,000 of 8% bonds on March 1, 2020. The bonds pay interest on...
Ivanhoe Co. sells $537,000 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.)
(a) Ivanhoe Co. sells $537,000 of 8%...
On June 30, 2020, Ivanhoe Limited issued $5 million of 20-year, 15% bonds for $5,707,274, which...
On June 30, 2020, Ivanhoe Limited issued $5 million of 20-year, 15% bonds for $5,707,274, which provides a yield of 13%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31. repare the journal entries to record the following transactions: (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no...
On January 1, 2020, Kingbird, Inc. issued $2,680,000 face value, 12%, 10-year bonds at $2,534,577. This price resulted...
On January 1, 2020, Kingbird, Inc. issued $2,680,000 face value, 12%, 10-year bonds at $2,534,577. This price resulted in an effective-interest rate of 13% on the bonds. Kingbird uses the effective interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account...
Question 4 On July 1, 2017, Global Satellites Corporation issued $1,550,000 of 10-year, 6% bonds to...
Question 4 On July 1, 2017, Global Satellites Corporation issued $1,550,000 of 10-year, 6% bonds to yield a market interest rate of 5%. 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 $1,670,815 Click here to view the factor table. 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.)...
Question 4 On July 1, 2017, Global Satellites Corporation issued $1,800,000 of 10-year, 8% bonds to...
Question 4
On July 1, 2017, Global Satellites Corporation issued $1,800,000
of 10-year, 8% bonds to yield a market interest rate of 7%. 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
$1,927,919
Click here to view the factor table.
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.)...
Problem 10-12A On January 1, 2019, Windsor, Inc. issued $2,280,000 face value, 8%, 10-year bonds at...
Problem 10-12A On January 1, 2019, Windsor, Inc. issued $2,280,000 face value, 8%, 10-year bonds at $2,133,677. This price resulted in an effective-interest rate of 9% on the bonds. Windsor uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Your answer is partially correct. Try again. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered....
On January 1, 2020, Oriole Corporation issued $1,550,000 face value, 6%, 10-year bonds at $1,441,134. This...
On January 1, 2020, Oriole Corporation issued $1,550,000 face value, 6%, 10-year bonds at $1,441,134. This price resulted in an effective-interest rate of 7% on the bonds. Lock uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation...
Ivanhoe Inc. issues $2,000,000, 5-year, 14% bonds at 101, with interest payable annually on January 1....
Ivanhoe Inc. issues $2,000,000, 5-year, 14% bonds at 101, with interest payable annually on January 1. The straight-line method is used to amortize bond premium. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the adjusting journal entry to record interest expense and...
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...
please do calculate bond amortization cost as well, as its not
fully showing in last pic. Thanks!
On January 1, 2021, Oriole Ltd, issued $440,000 of 5%, 5-year bonds. The bonds were issued to yield a market interest rate of 6%. Oriole's year end is December 31. On January 1, 2023 immediately after making and recording the semi-annual interest payment, Oriole redeemed the bonds. A partial bond amortization schedule is presented below. Semi-Annual Interest Interest Bond Interest Period Payment Expense...
Ivanhoe Co. sells $537,000 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.)
(a) Ivanhoe Co. sells $537,000 of 8%...
On January 1, 2020, Kingbird, Inc. issued $2,680,000 face value, 12%, 10-year bonds at $2,534,577. This price resulted in an effective-interest rate of 13% on the bonds. Kingbird uses the effective interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account...
Question 4 On July 1, 2017, Global Satellites Corporation issued $1,550,000 of 10-year, 6% bonds to yield a market interest rate of 5%. 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 $1,670,815 Click here to view the factor table. 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.)...
Question 4
On July 1, 2017, Global Satellites Corporation issued $1,800,000
of 10-year, 8% bonds to yield a market interest rate of 7%. 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
$1,927,919
Click here to view the factor table.
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.)...
Problem 10-12A On January 1, 2019, Windsor, Inc. issued $2,280,000 face value, 8%, 10-year bonds at $2,133,677. This price resulted in an effective-interest rate of 9% on the bonds. Windsor uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Your answer is partially correct. Try again. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered....
Most questions answered within 3 hours.
-
For each of the following errors, tell whether your calculated
molecular weight would be too high,...
asked 2 minutes ago -
According to CTIA, 25% of all U.S. households are wireless-only
households (no landline). In a random...
asked 18 minutes ago -
REGEX TO PARSE .25 increments.
accepted values:
0.25
1.50
2.00
not accepted:
.1
0.27
1.51
0.00...
asked 3 minutes ago -
Write the complete molecular equation (CME), the complete ionic
equation (CIE), and the net ionic equation...
asked 5 minutes ago -
Signed values: Convert each as indicated. You do not need to
show your work. (But please...
asked 12 minutes ago -
The susceptibility tests included in this unit are typically
used differentiate between Gram-positive cocci. Would you...
asked 17 minutes ago -
Since 1943 the use of nuclear power/energy/technology has come a
long way, from nuclear power plants...
asked 16 minutes ago -
I'm working on Graph implementation in Java. I can't figure out
why the method isConnected() using...
asked 18 minutes ago -
Using Phyton. Design a class Country with the use of
constructor, mutator, accessor methods and implement...
asked 21 minutes ago -
1)In a test for the difference between two proportions, the
sample sizes were n1 = 79...
asked 34 minutes ago -
The
found acceleration of a knife dropping into peanut butter was 10
m/s^2. Does it make...
asked 29 minutes ago -
The hybrid orbitals of what molecule have the most p
character?
Methane
Ethylene
Acetylene
Benzene
asked 37 minutes ago