Homework Answers
1) Discount on bonds issuance = 310000-299150 = 10850
2) Total discount amortized = 10850*6/12 = 5425
3) Carrying value of bonds
| Par value | 310000 |
| Remaining discount | -5425 |
| Carrying value | 304575 |
4) Journal entry : Retirement
| No | General Journal | Debit | Credit |
| Bonds payable | 310000 | ||
| Loss on bonds retirement | 20925 | ||
| Discount on bonds payable | 5425 | ||
| Cash | 325500 |
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Exercise 14-11 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2019,...
Exercise 14-11 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2019,...
Exercise 14-11 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2019, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January 1 2025, Shay retires these bonds by buying them on the open market for $731,500. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount 1. What is the amount...
On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year bonds. The bonds sell for...
On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year
bonds. The bonds sell for $391,000. Six years later, on January 1,
2025, Shay retires these bonds by buying them on the open market
for $419,000. All interest is accounted for and paid through
December 31, 2024, the day before the purchase. The straight-line
method is used to amortize any bond discount.
1. What is the amount of the discount on the bonds
at issuance?
2. How much amortization...
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Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 [The following...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 [The following information applies to the questions displayed below On January 1, 2017, Shay issues $700,000 of 10%, 15-year bonds at a price of 9734 Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104½ All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 The following...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
On January 1, 2019, Shay Company issues $320,000 of 9%, 20-year bonds. The bonds sell for...
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On January 1, 2019, Shay Company issues $290,000 of 11%, 20-year bonds. The bonds sell for...
On January 1, 2019, Shay Company issues $290,000 of 11%, 20-year bonds. The bonds sell for $282,750. Six years later on January 2025, Shay retires these bonds by buying them on the open market for $303,050. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straightline method is used to amortize any bond discount 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of...
On January 1, 2017, Shay issues $320,000 of 9%, 20-year bonds at a price of 96.75....
On January 1, 2017, Shay issues $320,000 of 9%, 20-year bonds at a price of 96.75. Six years later, on January 1, 2023, Shay retires 25% of these bonds by buying them on the open market at 104.75. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount. 1- How much does the company receive when it issues the bonds on January 1, 2017?...
Exercise 14-11 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2019, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January 1 2025, Shay retires these bonds by buying them on the open market for $731,500. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount 1. What is the amount...
On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year
bonds. The bonds sell for $391,000. Six years later, on January 1,
2025, Shay retires these bonds by buying them on the open market
for $419,000. All interest is accounted for and paid through
December 31, 2024, the day before the purchase. The straight-line
method is used to amortize any bond discount.
1. What is the amount of the discount on the bonds
at issuance?
2. How much amortization...
Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 [The following information applies to the questions displayed below On January 1, 2017, Shay issues $700,000 of 10%, 15-year bonds at a price of 9734 Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104½ All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
On January 1, 2019, Shay Company issues $320,000 of 9%, 20-year bonds. The bonds sell for $309,600. Six years later, on January 1, 2025, Shay retires these bonds by buying them on the open market for $335,200. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization...
On January 1, 2019, Shay Company issues $290,000 of 11%, 20-year bonds. The bonds sell for $282,750. Six years later on January 2025, Shay retires these bonds by buying them on the open market for $303,050. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straightline method is used to amortize any bond discount 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of...
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