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estion 4 12 points Save A Taylor Corporation issued S4,000,000 10-year, 6% bonds on January 1...
Taylor Corporation issued $2 million, 10-year, 8% bonds on January 1, 2011. Instructions: Prepare the entries...
Taylor Corporation issued $2 million, 10-year, 8% bonds on January 1, 2011. Instructions: Prepare the entries to record the sale of these bonds and the first semi-annual payment of interest, assuming they were issued at the following. Use the effective interest method of amortization of the discount or premium. (a) 93.5, with an effective rate of 9%. (b) 107.1, with an effective rate of 7%.
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
10 points Save Sunrise Corporation issued $600,000 of 4%, 10-year bonds on January 1, 2021, for...
10 points Save Sunrise Corporation issued $600,000 of 4%, 10-year bonds on January 1, 2021, for 5510,738. This price provided a yield of 6°o on the bonds Interest is payable semiannually on June 30 and December 31. If Sunrise uses the effective interest method and fiscal year-end is on October 31, the amount of interest expense reported on the income statement for the year ended October 31, 2021 should be (Do not add dollar sig: do not add comma by...
Question 6 (-12) Lang Corporation issued $600,000 of 8%, 10-year bonds on January 1, 2020, for...
Question 6 (-12) Lang Corporation issued $600,000 of 8%, 10-year bonds on January 1, 2020, for $560,975. This price provided a yield of 9% on the bonds. Interest is payable semiannually on June 30 and December 31. If Lang uses the effective-interest method, the amount of interest expense to record if financial statements are issued on December 31, 2020 should be: $50,544. (2) $49,448. * $48,685. 4 $48,000. Question 7 -- /2 Freedom Corporation buys and sells debt securities which...
On January 1, 2017, Hooper Corporation issued 3-year bonds with a $40,000 face amount and a...
On January 1, 2017, Hooper Corporation issued 3-year bonds with a $40,000 face amount and a 6% annual coupon rate paid annually on December 31. The bonds were issued at $36,021 when the market rate of interest was 10%. Create the amortization table for the bonds using the effective interest method. Round all amounts to the nearest dollar. Save the table as a PDF file and attach it here. Use the following format: Date Cash Interest Expense Amortization Carrying Value...
On January 1, Thompson Corporation issued $2,750,000, 10%, 4-year bonds for $2,932,167. Interest is payable annually...
On January 1, Thompson Corporation issued $2,750,000, 10%, 4-year bonds for $2,932,167. Interest is payable annually on January 1. The effective interest rate on the bonds is 8%. Use the effective-interest method to determine the amount of interest expense for the first year.
22. On January 1, 2019, a company issued $400,000 of 10-year, 12% bonds. The interest is...
22. On January 1, 2019, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semiannually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective interest method of amortization is used. Which of the following statements is incorrect? a) The market rate of interest on the sale date was less than the coupon rate of interest. b) The book value of the bond will decrease as the...
On January 1, Anthony Corporation issued $1,000,000, 14%, 5-year bonds. The bonds sold for $1,072,096. This...
On January 1, Anthony Corporation issued $1,000,000, 14%, 5-year bonds. The bonds sold for $1,072,096. This price resulted in an effective interest rate of 12% on the bonds. Interest is payable annually on January 1. Use the effective interest method to determine the amount of interest expense for the first year. $125,581 $120,000 $140,000 $167,425 $ 128,652
On January 1, 2017, Lock Corporation issued $3,520,000 facevalue, 8%, 10-year bonds at $3,294,098. This...
On January 1, 2017, Lock Corporation issued $3,520,000 face
value, 8%, 10-year bonds at $3,294,098. This price resulted in an
effective-interest rate of 9% on the bonds. Lock uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on January 1.
On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016
On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled 522,107.40. Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 7% December 31, 2016 First interest payment using the effective interest method December 31, 2016 Amortization of bond issue costs using the straight-line method December 31,...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
10 points Save Sunrise Corporation issued $600,000 of 4%, 10-year bonds on January 1, 2021, for 5510,738. This price provided a yield of 6°o on the bonds Interest is payable semiannually on June 30 and December 31. If Sunrise uses the effective interest method and fiscal year-end is on October 31, the amount of interest expense reported on the income statement for the year ended October 31, 2021 should be (Do not add dollar sig: do not add comma by...
Question 6 (-12) Lang Corporation issued $600,000 of 8%, 10-year bonds on January 1, 2020, for $560,975. This price provided a yield of 9% on the bonds. Interest is payable semiannually on June 30 and December 31. If Lang uses the effective-interest method, the amount of interest expense to record if financial statements are issued on December 31, 2020 should be: $50,544. (2) $49,448. * $48,685. 4 $48,000. Question 7 -- /2 Freedom Corporation buys and sells debt securities which...
22. On January 1, 2019, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semiannually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective interest method of amortization is used. Which of the following statements is incorrect? a) The market rate of interest on the sale date was less than the coupon rate of interest. b) The book value of the bond will decrease as the...
On January 1, Anthony Corporation issued $1,000,000, 14%, 5-year bonds. The bonds sold for $1,072,096. This price resulted in an effective interest rate of 12% on the bonds. Interest is payable annually on January 1. Use the effective interest method to determine the amount of interest expense for the first year. $125,581 $120,000 $140,000 $167,425 $ 128,652
On January 1, 2017, Lock Corporation issued $3,520,000 face
value, 8%, 10-year bonds at $3,294,098. This price resulted in an
effective-interest rate of 9% on the bonds. Lock uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on January 1.
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