CP 10–4 On January 1, 2019, the date of bond authorization, Paquette Inc. issued 3‐year, 12‐per...
CP 10–4 On January 1, 2019, the date of bond authorization, Paquette Inc. issued 3‐year, 12‐per cent bonds. Semi‐annual interest is payable on June 30 and December 31. Paquette uses the straight‐line method of amortization. The following journal entry records the first payment of interest: 2019 June 30 Interest Expense 17,000 Cash 16,500 Discount on Bonds 500 Required: Reconstruct the journal entry made to record the issuance of bonds on January 1, 2019.
Homework Answers
- Bonds payable = ($16,500 / 6%) = $275,000
- Since $16,500 is half yearly interest, 6% is taken as half yeary rate which is ( 12%/2)
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CP 10–4 On January 1, 2019, the date of bond authorization,
Paquette Inc. issued 3‐year, 12‐per...
On January 1, 2019, the date of bond authorization, Paquette Inc. issued 3-year, 12-per cent bonds. Semi-annual inte...
On January 1, 2019, the date of bond authorization, Paquette Inc. issued 3-year, 12-per cent bonds. Semi-annual interest is payable on June 30 and December 31. Paquette uses the straight-line method of amortization. The following journal entry records the first payment of interest: 2019 17,000 June 30 Interest Expense 16,500 Cash 500 Discount on Bonds Required: Reconstruct the journal entry made to record the issuance of bonds on January 1, 2019.
On January 1, 2019, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest. (a) Prepare the general journal entry to record the issuance of the bonds on January 1,2019 the co...
On January 1, 2019, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest. (a) Prepare the general journal entry to record the issuance of the bonds on January 1,2019 the company uses the effective interest method of amortization of any discount or premium on bonds. Prepare the June 30, 2019 and the second interest payment on December 31, 2019. general journal entry to record the first semiannual interest payment on Credit Debit Date
On January 1, 2019,...
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Question 3 On January 31, 2016 Muscle Sports Cars issued 10-year, 4% bonds with a face...
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Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
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Supreme Autoparts Inc. issued $190,000 of 7%, 10-year bonds at a price of 82 on January...
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Alexander Company issued $160,000, 12%, 10-year bonds payable at 96 on January 1, 2018. 6. Journalize...
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Mechanical Autoparts Inc. issued $190,000 of 9%, 10-year bonds at a price of 88 on January...
Mechanical Autoparts Inc. issued $190,000 of 9%, 10-year bonds at a price of 88 on January 31, 2017. The market interest rate at the date of issuance was 11%, and the standard bonds pay interest 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Mechanical'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 are...
Premiere Autoparts Inc. issued $140,000 of 7%, 10-year bonds at a price of 86 on January...
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On January 1, 2019, the date of bond authorization, Paquette Inc. issued 3-year, 12-per cent bonds. Semi-annual interest is payable on June 30 and December 31. Paquette uses the straight-line method of amortization. The following journal entry records the first payment of interest: 2019 17,000 June 30 Interest Expense 16,500 Cash 500 Discount on Bonds Required: Reconstruct the journal entry made to record the issuance of bonds on January 1, 2019.
On January 1, 2019, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest. (a) Prepare the general journal entry to record the issuance of the bonds on January 1,2019 the company uses the effective interest method of amortization of any discount or premium on bonds. Prepare the June 30, 2019 and the second interest payment on December 31, 2019. general journal entry to record the first semiannual interest payment on Credit Debit Date
On January 1, 2019,...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Supreme Autoparts Inc. issued $190,000 of 7%, 10-year bonds at a price of 82 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 Supreme'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...
Alexander Company issued $160,000, 12%, 10-year bonds payable at 96 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 110. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Mechanical Autoparts Inc. issued $190,000 of 9%, 10-year bonds at a price of 88 on January 31, 2017. The market interest rate at the date of issuance was 11%, and the standard bonds pay interest 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Mechanical'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 are...
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