ZuoTi.Pro
Question

Accounting principle 2

E15–12 Bingo Ltd. is authorized to issue $6,000,000 of 5 percent, 10-year bonds. On January 2, 2020, when the market interest rate is 6 percent, the company issues $4,800,000 of the bonds and receives cash of $4,442,941. Interest is paid on June 30 and December 31 each year. Required 

Prepare an amortization table for the first four semi-annual interest periods. Follow the format of Panel B in Exhibit 15–5 on page 833. Bingo Ltd. amortizes bond discounts by the effective-interest method.

 Record the issue of the bonds on January 2, the first semi-annual interest payment on June 30, and the second payment on December 31. 

Show the balance sheet presentation of the bond on the date of issue and on December 31, 2021.

college   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

image.png

answered by: Pingfeti
1 0
Add a comment
Know the answer?
Add Answer to:
Accounting principle 2
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Problem 15-4A On December 31, 2017, Belagio Holdings Ltd. issues 6 percent, 10-year convertible bonds with...

    Problem 15-4A On December 31, 2017, Belagio Holdings Ltd. issues 6 percent, 10-year convertible bonds with a maturity value of $6,000,000. The semi-annual interest dates are June 30 and December 31. The market interest rate is 5 percent and the issue price of the bonds is 107.79458. Belagio Holdings Ltd, amortizes any bond premium and discount by the effective interest method. Chapter 15 LO < 888 > Required 1. Prepare an effective-interest-method amortization table for the first four semi-annual interest...

  • Ltd. is authorized to issue $ 3 comma 000 comma 000$3,000,000 of 44?%, 1010?-year bonds payable....

    Ltd. is authorized to issue $ 3 comma 000 comma 000$3,000,000 of 44?%, 1010?-year bonds payable. On December? 31, 20142014?, when the market interest rate is 77?%, the company issues $ 2 comma 400 comma 000$2,400,000 of the bonds. ChampChamp Ltd. amortizes bond discount by the? effective-interest method. The semiannual interest dates are June 30 and December 31. Requirements 1. Use the PV function in Excel Superscript ®Excel® to calculate the issue price of the bonds. 2. Prepare a bond...

  • On January 1, Hemi Corporation issued $500,000 of 15-year, 10% bonds for $586,460 yielding an effective...

    On January 1, Hemi Corporation issued $500,000 of 15-year, 10% bonds for $586,460 yielding an effective interest rate(yield to maturity) of 8%. Interest is paid semi-annually on June 30 and December 31/ Required: 1) Show computations to confirm the issue price. 2) Compute an amortization schedule for the 15 years of the bonds' life. 3) Give Journal entries for: (A) bond issuance, (b) semi-annual interest payment on June 30 of the first year, and (c) the semi-annual interest payment on...

  • [The following information applies to the questions displayed below.] On January 1, 2021, Twister Enterprises, a...

    [The following information applies to the questions displayed below.] On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $550,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 3. If the market interest rate is 6%, the bonds will issue at $603,901. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December...

  • On January 1, Hemi Corporation issued $350,000 of 9-year, 8% bonds for $309,086 yielding an effective...

    On January 1, Hemi Corporation issued $350,000 of 9-year, 8% bonds for $309,086 yielding an effective interest rate (yield to maturity) of 10%. Interest is paid-semi-annually on June 30 and December 31. Required: 1) Show computations to confirm the issue price 2) compute an amortization schedule for the 9 years of the bonds' life. 3) Give journal entries for: (A) bond issuance, (B) the semi-annual interest payment on June 30 of the first year, and (c) the semi0annual interest payment...

  • Bond Problems 1. Consider a bond issue as follows: Face $100,000 Stated rate of interest 14%...

    Bond Problems 1. Consider a bond issue as follows: Face $100,000 Stated rate of interest 14% Market rate of interest 20% Maturity in five years Semi-annual interest payments on June 30 and December 31 Date of issue on January 1, 2019 Bond selling price: $81,566 1. Prepare the journal entry for the issuance. 2. Prepare the journal entry for the first interest payment. 3. Prepare the journal entry for the second interest payment. 5. Prepare the Balance Sheet presentation at...

  • Question 3 On January 31, 2016 Muscle Sports Cars issued 10-year, 4% bonds with a face...

    Question 3 On January 31, 2016 Muscle Sports Cars issued 10-year, 4% bonds with a face value of $100,000. The bonds were issued at 94 and pay interest on January 31 and June 30. Muscle amortizes their bonds by the straight-line method.    Record (a) issuance of the bonds on January 31, (b) the semi-annual interest payment and discount amortization on June 30, and (c) the interest accrual and discount amortization on December 31.

  • Question 4 On June 30, 2016, the market interest rate is 7%. Starship Enterprises issues $500,000...

    Question 4 On June 30, 2016, the market interest rate is 7%. Starship Enterprises issues $500,000 of 8%, 20-year bonds at 110.625. The bonds pay interest on June 30 and December 31. Starship amortizes bonds by the effective-interest method.    Record issuance of the bonds on June 30, 2016, the payment of interest at December 31, 2016, and the semi-annual interest payment on June 30, 2017.

  • Question 4 On June 30, 2016, the market interest rate is 7%. Starship Enterprises issues $500,000...

    Question 4 On June 30, 2016, the market interest rate is 7%. Starship Enterprises issues $500,000 of 8%, 20-year bonds at 110.625. The bonds pay interest on June 30 and December 31. Starship amortizes bonds by the effective-interest method. 1. Record issuance of the bonds on June 30, 2016, the payment of interest at December 31, 2016, and the semi-annual interest payment on June 30, 2017.

  • On January 1, 2017, Spartan Corp. issued at 93, 4% bonds with a par value of...

    On January 1, 2017, Spartan Corp. issued at 93, 4% bonds with a par value of $600,000, due in 5 years. Interest is payable semiannually on June 30 and December 31 of each year. In addition, Spartan incurred bond issue costs totaling $10,000. 4 years after the issue date, On January 1, 2021, Spartan calls the entire issue at 98 and cancels it. Spartan amortizes discounts/premiums, using the straight-line method. Required: Record the necessary journal entries on January 1, 2017....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT