Terrance Company issued $200,000 of 8%, 5-year bonds at 106. how much bond interest expense is...
Terrance Company issued $200,000 of 8%, 5-year bonds at 106. how much bond interest expense is recorded on the first interest date? (assume annual interest and straight line amortization of the discount/premium)
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Terrance Company issued $200,000 of 8%, 5-year bonds at 106. how
much bond interest expense is...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
4) Atlantic Company issues 10-year bonds, as follows: Bonds are dated to be issued on: Bonds are ...
4) Atlantic Company issues 10-year bonds, as follows: Bonds are dated to be issued on: Bonds are issued on Par value of bonds: Stated annual interest rate: Price at date of issue: Semiannual interest payments: Bond issue costs incurred: Amortization method used: January 1, 20x1 June 1, 20x1 $900,000 4% 101.15 January 1 and July 1 $16,100 Straight-line Straight-line amortization of bond issue costs and premium or discount amortization are recorded once ayear, at year-end. SEE NEXT PAGE FOR REQUIREMENTS...
Bryant Company issued $80,000, 2%, 10-year bonds payable at 90 on January 1, 2018. 6. Journalize...
Bryant Company issued $80,000, 2%, 10-year bonds payable at 90 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 112. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Alexander Company issued $160,000, 12%, 10-year bonds payable at 96 on January 1, 2018. 6. Journalize...
Alexander Company issued $160,000, 12%, 10-year bonds payable at 96 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 110. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Alexander Company issued $100,000, 8%, 10-year bonds payable at 96 on January 1, 2018. 6. Journalize...
Alexander Company issued $100,000, 8%, 10-year bonds payable at 96 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Exercise 6: Complete the following example for a bond issued at a price of 106. T-accts below The...
Exercise 6: Complete the following example for a bond issued at a price of 106. T-accts below The same bond from Exercise 4 is issued at a price of 106. This price indicates that the Effective rate of interest is less than the Stated rate of interest. As a result, the bond issues at a Premium 1. Entry required upon issuance of the bond Cash proceeds: $ Note: Even though a Premium is recorded, the company must still repay just...
Bond Amortization = Bond Discount or Premium / Number of Interest Periods Interest Paid = Face...
Bond Amortization = Bond Discount or Premium / Number of Interest Periods Interest Paid = Face Amount of Bonds x Stated Interest Rate Interest Expense = Interest Paid + Discount ( or – Premium) Amortization On October 1, 2018 ABC issued 5%, 10-year bonds with a face value of $4,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. What is interest expense for 2018? Assume ABC Company...
Crane Company issued $264,000, 8%, 15-year bonds on December 31, 2021, for $253,440. Interest is payable...
Crane Company issued $264,000, 8%, 15-year bonds on December 31, 2021, for $253,440. Interest is payable annually on December 31. Crane uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...
Cullumber Company issued $333,000, 8%, 15-year bonds on December 31, 2021, for $319,680. Interest is payable...
Cullumber Company issued $333,000, 8%, 15-year bonds on December 31, 2021, for $319,680. Interest is payable annually on December 31. Cullumber uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...
Plymouth Corporation issued $200,000 of 9%, five-year bonds for 150,000 (bonds were issued at discount) on...
Plymouth Corporation issued $200,000 of 9%, five-year bonds for 150,000 (bonds were issued at discount) on January 1, 2000. Interest is paid semi-annually on January 1 and July 1. Plymouth Corporation uses the straight-line method of amortization. Record the following transactions in the journal below Transactions for 2000 Jan. 1 Issued $200,000 of 5-year, 9% bonds at $150,000. Jul. 1 Recorded the interest payment. Dec. 31 Recorded the accrued interest on the bonds. Transactions for 2001 Jan. 1 Recorded the interest payment. Jul. 1 Recorded the interest...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
4) Atlantic Company issues 10-year bonds, as follows: Bonds are dated to be issued on: Bonds are issued on Par value of bonds: Stated annual interest rate: Price at date of issue: Semiannual interest payments: Bond issue costs incurred: Amortization method used: January 1, 20x1 June 1, 20x1 $900,000 4% 101.15 January 1 and July 1 $16,100 Straight-line Straight-line amortization of bond issue costs and premium or discount amortization are recorded once ayear, at year-end. SEE NEXT PAGE FOR REQUIREMENTS...
Bryant Company issued $80,000, 2%, 10-year bonds payable at 90 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 112. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Alexander Company issued $160,000, 12%, 10-year bonds payable at 96 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 110. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Alexander Company issued $100,000, 8%, 10-year bonds payable at 96 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Exercise 6: Complete the following example for a bond issued at a price of 106. T-accts below The same bond from Exercise 4 is issued at a price of 106. This price indicates that the Effective rate of interest is less than the Stated rate of interest. As a result, the bond issues at a Premium 1. Entry required upon issuance of the bond Cash proceeds: $ Note: Even though a Premium is recorded, the company must still repay just...
Crane Company issued $264,000, 8%, 15-year bonds on December 31, 2021, for $253,440. Interest is payable annually on December 31. Crane uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...
Cullumber Company issued $333,000, 8%, 15-year bonds on December 31, 2021, for $319,680. Interest is payable annually on December 31. Cullumber uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...
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