Prepare an amortization schedule using the effective interest method and give the necessary journal entries in 2014 in the following two cases.
On Jan. 1, 2014, Grove Corporation issued $100,000 of 6% bonds that mature in three years with interest paid on June 30 and December 31. Prepare an amortization schedule using the effective interest method and give the necessary journal entries in 2014 in the following two cases. a) Assume the market interest rate is 4%. b) Assume the market interest rate is 8%.
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Prepare an amortization schedule using the effective interest method and give the necessary journal entries in 2014 in the following two cases.
Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Premium Mitchell Inc. issued 42, 6%,...
Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Premium Mitchell Inc. issued 42, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest semiannually each June 30, and December 31, and were issued to yield 5%. The bonds mature December 31, 2024, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the selling price of the bonds. Round amount to the nearest whole dollar. b. Prepare an amortization...
Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Premium Mitchell Inc. issued 120, 6%,...
Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Premium Mitchell Inc. issued 120, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest annually each December 31 and were issued to yield 5%. The bonds mature December 31, 2024, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the selling price of the bonds. Round amount to the nearest whole dollar. b. Prepare an amortization schedule for the...
P14-1 (LO1) GROUPWORK (Analysis of Amortization Schedule and Interest Entries) The following amortization and interest schedule...
P14-1 (LO1) GROUPWORK (Analysis of Amortization Schedule and Interest Entries) The following amortization and interest schedule reflects the issuance of 10-year bonds by Capulet Corporation on January 1, 2011, and the subsequent interest payments and charges. The company’s year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Year Cash Interest Amount Unamortized Carrying Value 1/1/2011 $5,651 $94,349 2011 $11,000 $11,322 5,329 94,671 2012 11,000 11,361 4,968 95,032 2013 11,000 11,404 4,564 95,436 2014 11,000 11,452 4,112...
Journal Entries Amortization Schedule Straight-Line Amortization Effective Interest Option #1: Investments in Debt Securities Complete the...
Journal Entries
Amortization Schedule Straight-Line
Amortization Effective Interest
Option #1: Investments in Debt Securities Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at BAJA Corporation describing what the numbers mean and how they relate to the business. Submit journal entries in the Excel file included in the module section and written segments in an MS Word document....
Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2017, Blair Company issued $600,000 of...
Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2017, Blair Company issued $600,000 of 20‑year, 11 percent bonds payable for $554,861, yielding an effective interest rate of 12 percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on June 30, 2018, and (c) the semiannual interest payment and discount amortization on December 31, 2018....
P 14-5 Issuer and Investor; effective interest: amortization schedule; adjusting entries .LO14-2 On February 1, 2021,...
P 14-5 Issuer and Investor; effective interest: amortization schedule; adjusting entries .LO14-2 On February 1, 2021, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $80,000 of the bonds as a long-term investment. The fiscal years of both firms...
The following amortization and interest schedule reflects the issuance of 10-year bonds by Coronado Corporation on...
The following amortization and interest schedule reflects the issuance of 10-year bonds by Coronado Corporation on January 1, 2014, and the subsequent interest payments and charges. The company’s year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Year Cash Interest Amount Unamortized Carrying Value 1/1/2014 $26,720 $ 106,380 2014 $14,641 $15,957 25,404 107,696 2015 14,641 16,154 23,891 109,209 2016 14,641 16,381 22,151 110,949 2017 14,641 16,642 20,150 112,950 2018 14,641 16,943 17,848 115,252 2019 14,641 17,288...
The following amortization and interest schedule reflects the issuance of 10-year bonds by Pronghorn Corporation on...
The following amortization and interest schedule reflects the issuance of 10-year bonds by Pronghorn Corporation on January 1, 2014, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Amount Unamortized Carrying Value Year Interest 1/1/2014 $28,354 $ 222,546 2014 $25,090 $26,706 26,738 224,162 2015 25,090 26,899 24,929 225,971 2016 25,090 27,117 22,902 227,998 2017 25,090 27,360 20,632 230,268 2018 25,090 27,632 18,090 232,810 2019 25,090 27,937 15,243...
With detailed explanation, please. P 14-3 Straight-line and effective interest compared Page 821 QL014–2 On January...
With detailed explanation,
please.
P 14-3 Straight-line and effective interest compared Page 821 QL014–2 On January 1, 2021, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,768 to yield an annual return of 10%. Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate. 2. Prepare an amortization schedule by the straight-line method. 3. Prepare the journal entries to record interest...
On January 2, 2014, Apple Smith Co. issued $230,000 in four-year bonds, with a stated interest...
On January 2, 2014, Apple Smith Co. issued $230,000 in four-year bonds, with a stated interest rate of 9.5%. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $213,510 to yield an annual return of 11.8%. Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate for each period. Round all calculations to dollars. 2. Prepare an amortization schedule by the straight-line method for each of the eight interest payment...
Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Premium Mitchell Inc. issued 42, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest semiannually each June 30, and December 31, and were issued to yield 5%. The bonds mature December 31, 2024, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the selling price of the bonds. Round amount to the nearest whole dollar. b. Prepare an amortization...
Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Premium Mitchell Inc. issued 120, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest annually each December 31 and were issued to yield 5%. The bonds mature December 31, 2024, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the selling price of the bonds. Round amount to the nearest whole dollar. b. Prepare an amortization schedule for the...
Journal Entries
Amortization Schedule Straight-Line
Amortization Effective Interest
Option #1: Investments in Debt Securities Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at BAJA Corporation describing what the numbers mean and how they relate to the business. Submit journal entries in the Excel file included in the module section and written segments in an MS Word document....
P 14-5 Issuer and Investor; effective interest: amortization schedule; adjusting entries .LO14-2 On February 1, 2021, Cromley Motor Products issued 9% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $80,000 of the bonds as a long-term investment. The fiscal years of both firms...
The following amortization and interest schedule reflects the issuance of 10-year bonds by Pronghorn Corporation on January 1, 2014, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Amount Unamortized Carrying Value Year Interest 1/1/2014 $28,354 $ 222,546 2014 $25,090 $26,706 26,738 224,162 2015 25,090 26,899 24,929 225,971 2016 25,090 27,117 22,902 227,998 2017 25,090 27,360 20,632 230,268 2018 25,090 27,632 18,090 232,810 2019 25,090 27,937 15,243...
With detailed explanation,
please.
P 14-3 Straight-line and effective interest compared Page 821 QL014–2 On January 1, 2021, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,768 to yield an annual return of 10%. Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate. 2. Prepare an amortization schedule by the straight-line method. 3. Prepare the journal entries to record interest...
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