Calculation of Bond price and Journal entries of Issuance and Interest Payments
Banjo Education Corp. issued a 4%, $ 180,000 bond that pays interest semiannually each June 30 and December 31. The date of issuance was January 1,2020. The bonds mature after four years. The market interest rate was 6%. Banjo Education Corp.s year-end is December 31. Use TABLE 14A. and TABLE 14A.2. (For all the requirements, Use appropriate factor(s) from the tables provided.)
Required:
Preparation Component:
1. Calculate the issue price of the bond. (Round the final answer to the nearest whole dollar.)
2. Prepare a general journal entry to record the issuance of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)
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Calculation of Bond price and Journal entries of Issuance and Interest Payments
Banjo Education Corp. issued a 4% $100.000 bond that pays interest semiannually each June 30 and...
Banjo Education Corp. issued a 4% $100.000 bond that pays interest semiannually each June 30 and December 31 The date of issuance was January 1, 2017 The bonds mature after four years. The market interest rate was 6% Banjo Education Corp's year-end is December 31. (Use TABLE 14A1 and TABLE 14A2) Required: Preparation Component: 1. Calculate the issue price of the bond. (Use appropriate factor(s) from the tables provided. Round the final answer to the nearest whole dollar.) Issue price...
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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...
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Check my work Exercise 14-16A Computing bond interest and price; recording bond issuance LO C2 Bringham Company issues bonds with a par value of $520,000. The bonds mature in 10 years and pay 8% annual interest in semiannual payments. The annual market rate for the bonds is 10%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.) 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal...
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