Homework Answers
| Market price of a bond =using present value function in MS excel | pv(rate,nper,pmt,fv,type) rate =8/2=4% n=2*4 =8 pmt =600000*6%*1/2 =18000 fv =600000 type=0 | PV(4%,8,18000,600000,0) | ($559,603.53) | ||
| Amortization schedule | |||||
| period | cash Interest paid = face value*coupon rate*1/2 | Interest expense = carrying value*market rate*1/2 | discount amortized = interest expense-cash interest paid | carrying value of discount to be amortized | carrying value of bond |
| Jan 1 2018 | 40396.47 | 559603.53 | |||
| June 30 2018 | 18000 | 22384.1412 | 4384.1412 | 36012.3288 | 563987.671 |
| Dec 31 2018 | 18000 | 22559.50685 | 4559.506848 | 31452.82195 | 568547.178 |
| June 30 2019 | 18000 | 22741.88712 | 4741.887122 | 26710.93483 | 573289.065 |
| Dec 31 2019 | 18000 | 22931.56261 | 4931.562607 | 21779.37222 | 578220.628 |
| June 30 2020 | 18000 | 23128.82511 | 5128.825111 | 16650.54711 | 583349.453 |
| Dec 31 2020 | 18000 | 23333.97812 | 5333.978116 | 11316.569 | 588683.431 |
| June 30 2021 | 18000 | 23547.33724 | 5547.33724 | 5769.231757 | 594230.768 |
| Dec 31 2021 | 18000 | 23769.23073 | 5769.23073 | 0 | 600000.00 |
| Journal Entry | |||||
| Date | explanation | debit | credit | ||
| 1-May | Interest expense | 15419.21674 | |||
| discount on bonds payable | 3419.22 | ||||
| Interest payable | 12000 | ||||
| 1-May | bonds payable | 581639.84 | |||
| loss on redemption of bonds payable | 26720.31 | ||||
| cash | 590000 | ||||
| discount on bond payable | 18360.16 | ||||
| 1-May | interest payable | 12000 | |||
| cash | 12000 |
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Search here. Search View Assessment Content X PROBLEM T On 1/1/18 A ulatu / Degree/TX Tool...
use excel please 2 3 On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds,...
use excel please
2 3 On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds pay interest each July 1 and January 1. JWS uses the effective-interest method. 5 B 7 Prepare the company's journal entries for (a) the January 1 bond issuance (b) the July 1 interest payment (c) the December 31 adjusting entry. 8 9 10 21 Assume an effective-interest rate of 6% 12 AR 20 25 20
ools View Docu Problem 17-02 On January 1, 2020, Flint Company purchased $440,000, 10% bonds of...
ools View Docu Problem 17-02 On January 1, 2020, Flint Company purchased $440,000, 10% bonds of Aguirre Co. for $407,614. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Flint Company uses the effective interest method to amortize discount or premium. On January 1, 2022, Flint Company sold the bonds for $409,094 after receiving interest to meet its liquidity needs. Prepare the journal entry...
File Home Insert Draw Design Layout References Mailings Review View Help Grammarly P Search 1. McWherter...
File Home Insert Draw Design Layout References Mailings Review View Help Grammarly P Search 1. McWherter Instruments sold $480 million of 10% bonds, dated January 1, on January 1, 2021. The bonds mature on December 31, 2040 (20 years). For bonds of similar risk and maturity, the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Blanton Technologies, Inc., purchased $480,000 of the bonds as a long- term investment Required: 1. Determine the price of...
Problem 10-3A Straight-Line: Amortization of bond premium LO P3 Ellis Company issues 8.0%, five-year bonds dated...
Problem 10-3A Straight-Line: Amortization of bond premium LO P3 Ellis Company issues 8.0%, five-year bonds dated January 1, 2019, with a $600,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $651,181. The annual market rate is 6% on the issue date. Required: 1. Complete the below table to calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds' life. 3....
Problem 14-07 On April 1, 2020, Ayayai Company sold 14,400 of its 11%, 15-year, $1,000 face...
Problem 14-07 On April 1, 2020, Ayayai Company sold 14,400 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Ayayai took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
Refer to the bond details in Problem 10-4A (attached photo). Required: 1. Prepare the January 1...
Refer to the bond details in Problem 10-4A (attached photo).
Required:
1. Prepare the January 1 journal entry to record the bonds'
issuance.
2. Determine the total bond interest expense to be recognized
over the bonds life.
3. Prepare an effective interest amortization table like the one
in Exhibit 10B.1 for the bonds' first two years.
4. Prepare journal entries to record the first two interest
payments.
J UHUU UU ILIU te nisl two interest payments. Curryy vuIC PLODU Legacy...
Please I need help with this!! Problem 10-12A On January 1, 2019, Sunland Company issued $3,980,000...
Please I need help with this!!
Problem 10-12A On January 1, 2019, Sunland Company issued $3,980,000 face value, 7%, 10-year bonds at $3,712,939. This price resulted in an effective-interest rate of 8% on the bonds. Sunland 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, 2019. (Credit account titles are automatically indented when amount is entered. Do...
Note Receivable Problem #3 On January 1, 2020, ABC sold merchandise for to a customer and...
Note Receivable Problem #3 On January 1, 2020, ABC sold merchandise for to a customer and agreed a $100,000 note receivable paid in four equal annual installments, each due on December 31. Note has no (zero) stated rate and an imputed interest rate of 8%. a. Determine the issue price of the note receivable. b. Provide the journal entry to record the bond issue? C. Determine the amount of interest revenue that Sparky will recognize over the life of the...
Problem 14-07 On April 1, 2020, Bonita Company sold 14,400 of its 11%, 15-year $1,000 face...
Problem 14-07 On April 1, 2020, Bonita Company sold 14,400 of its 11%, 15-year $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight line method of bond discount amortization. On March 1, 2021, Bonita took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the ccrued interest was pain cash....
Problem 10-1A Straight-Line: Amortization of bond discount LO P2 Topic: Click here to ask chapturstplated queste...
Problem 10-1A Straight-Line: Amortization of bond
discount LO P2
Topic: Click here to ask chapturstplated queste Ch 10: Homework Ch 10: Homework Saved Help Save & Exit Submit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the...
use excel please
2 3 On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds pay interest each July 1 and January 1. JWS uses the effective-interest method. 5 B 7 Prepare the company's journal entries for (a) the January 1 bond issuance (b) the July 1 interest payment (c) the December 31 adjusting entry. 8 9 10 21 Assume an effective-interest rate of 6% 12 AR 20 25 20
ools View Docu Problem 17-02 On January 1, 2020, Flint Company purchased $440,000, 10% bonds of Aguirre Co. for $407,614. The bonds were purchased to yield 12% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Flint Company uses the effective interest method to amortize discount or premium. On January 1, 2022, Flint Company sold the bonds for $409,094 after receiving interest to meet its liquidity needs. Prepare the journal entry...
File Home Insert Draw Design Layout References Mailings Review View Help Grammarly P Search 1. McWherter Instruments sold $480 million of 10% bonds, dated January 1, on January 1, 2021. The bonds mature on December 31, 2040 (20 years). For bonds of similar risk and maturity, the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Blanton Technologies, Inc., purchased $480,000 of the bonds as a long- term investment Required: 1. Determine the price of...
Problem 10-3A Straight-Line: Amortization of bond premium LO P3 Ellis Company issues 8.0%, five-year bonds dated January 1, 2019, with a $600,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $651,181. The annual market rate is 6% on the issue date. Required: 1. Complete the below table to calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds' life. 3....
Problem 14-07 On April 1, 2020, Ayayai Company sold 14,400 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Ayayai took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
Refer to the bond details in Problem 10-4A (attached photo).
Required:
1. Prepare the January 1 journal entry to record the bonds'
issuance.
2. Determine the total bond interest expense to be recognized
over the bonds life.
3. Prepare an effective interest amortization table like the one
in Exhibit 10B.1 for the bonds' first two years.
4. Prepare journal entries to record the first two interest
payments.
J UHUU UU ILIU te nisl two interest payments. Curryy vuIC PLODU Legacy...
Please I need help with this!!
Problem 10-12A On January 1, 2019, Sunland Company issued $3,980,000 face value, 7%, 10-year bonds at $3,712,939. This price resulted in an effective-interest rate of 8% on the bonds. Sunland 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, 2019. (Credit account titles are automatically indented when amount is entered. Do...
Note Receivable Problem #3 On January 1, 2020, ABC sold merchandise for to a customer and agreed a $100,000 note receivable paid in four equal annual installments, each due on December 31. Note has no (zero) stated rate and an imputed interest rate of 8%. a. Determine the issue price of the note receivable. b. Provide the journal entry to record the bond issue? C. Determine the amount of interest revenue that Sparky will recognize over the life of the...
Problem 14-07 On April 1, 2020, Bonita Company sold 14,400 of its 11%, 15-year $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight line method of bond discount amortization. On March 1, 2021, Bonita took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the ccrued interest was pain cash....
Problem 10-1A Straight-Line: Amortization of bond
discount LO P2
Topic: Click here to ask chapturstplated queste Ch 10: Homework Ch 10: Homework Saved Help Save & Exit Submit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the...
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