Homework Answers
| No | General Journal | Debit | Credit |
| 1 | Cash (19,500,000*8%*6/12) | 780,000 | |
| Discount on bond investment | 95,000 | ||
| Interest revenue (17,500,000*10%*6/12) | 875,000 | ||
| 2 | Cash (19,500,000*8%*6/12) | 780,000 | |
| Discount on bond investment | 99,750 | ||
| Interest revenue (17,500,000+95,000)*10%*6/12 | 879,750 |
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Saved TB Problem 14-182 (Algo) On January 1, 2021, for $17.5 million, Cenotaph Company purchased 8%...
On January 1, 2021, for $17.8 million, Cenotaph Company purchased 8% bonds, dated January 1, 2021....
On January 1, 2021, for $17.8 million, Cenotaph Company purchased 8% bonds, dated January 1, 2021. with a face amount of $19.8 million. For bonds of similar risk and maturity, the market yleld is 10%. Interest is paid semiannually on Dune 30 and December 31 Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method....
On January 1, 2021, for $17.2 million, Marker Company issued 8% bonds, dated January 1, 2021,...
On January 1, 2021, for $17.2 million, Marker Company issued 8% bonds, dated January 1, 2021, with a face amount of $19.2 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and. December 31. Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method....
Help Save & alt Sub On January 1, 2021, for $18.4 million, Cenotaph Company purchased 10%...
Help Save & alt Sub On January 1, 2021, for $18.4 million, Cenotaph Company purchased 10% bonds, dated January 1, 2021, with a face amount of $20.4 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31 Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021,...
On January 1, 2021, for $18.1 million, Marker Company issued 10% bonds, dated January 1, 2021,...
On January 1, 2021, for $18.1 million, Marker Company issued 10% bonds, dated January 1, 2021, with a face amount of $20.1 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method....
On January 1, 2021, Mania Enterprises issued 12% bonds dated January 1, 2021, with a face...
On January 1, 2021, Mania Enterprises issued 12% bonds dated January 1, 2021, with a face amount of $20.3 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to...
On January 1, 2021, Rapid Airlines issued $210 million of its 8% bonds for $193 million....
On January 1, 2021, Rapid Airlines issued $210 million of its 8% bonds for $193 million. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $198 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000...
On January 1, 2021, Rapid Airlines issued $260 million of its 10% bonds for $240 million....
On January 1, 2021, Rapid Airlines issued $260 million of its 10% bonds for $240 million. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $249 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000...
On January 1, 2021, Bishop Company issued 8% bonds dated January 1, 2021, with a face...
On January 1, 2021, Bishop Company issued 8% bonds dated January 1, 2021, with a face amount of $21.0 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to...
On January 1, 2021, JUNE Enterprises issued 10% bonds dated January 1, 2021, with a face...
On January 1, 2021, JUNE Enterprises issued 10% bonds dated January 1, 2021, with a face amount of $19.0 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 8%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record the bond issuance by Mania on January 1, 2021. 3. Prepare the...
Saved Help Save & Exit Submit On January 1, 2021, a company issues $750,000 of 8%...
Saved Help Save & Exit Submit On January 1, 2021, a company issues $750,000 of 8% bonds, due in ten years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $750,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a...
On January 1, 2021, for $17.8 million, Cenotaph Company purchased 8% bonds, dated January 1, 2021. with a face amount of $19.8 million. For bonds of similar risk and maturity, the market yleld is 10%. Interest is paid semiannually on Dune 30 and December 31 Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method....
On January 1, 2021, for $17.2 million, Marker Company issued 8% bonds, dated January 1, 2021, with a face amount of $19.2 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and. December 31. Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method....
Help Save & alt Sub On January 1, 2021, for $18.4 million, Cenotaph Company purchased 10% bonds, dated January 1, 2021, with a face amount of $20.4 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31 Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021,...
On January 1, 2021, for $18.1 million, Marker Company issued 10% bonds, dated January 1, 2021, with a face amount of $20.1 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method....
On January 1, 2021, Mania Enterprises issued 12% bonds dated January 1, 2021, with a face amount of $20.3 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to...
On January 1, 2021, Rapid Airlines issued $210 million of its 8% bonds for $193 million. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $198 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000...
On January 1, 2021, Rapid Airlines issued $260 million of its 10% bonds for $240 million. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $249 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000...
Saved Help Save & Exit Submit On January 1, 2021, a company issues $750,000 of 8% bonds, due in ten years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $750,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a...
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