Homework Answers
Correct answer----------Debit Bond interest expense $18,000: Credit Cash $ 18,000
Working
Complete entry is shown below with workings
| Account Title and Explanation | Debit | Credit |
| Bond interest expense (450000 x 4%) | $ 18,000 | |
| Cash | $ 18,000 | |
| (Interest on bond paid ) |
The rate of interest is taken as 4% Because the interest will be paid for 6 months only so 8%/2 = 4%.
Add Answer to:
General Electric issued 8%, 15-year bonds with a par value of $450,000 that pay interest semiannually....
A company issued 7%, 15-year bonds with a par value of $600,000 that pay interest semiannually
A company issued 7%, 15-year bonds with a par value of $600,000 that pay interest semiannually. The market rate on the date of issuance was 7%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $21,000; credit Cash $21,000. 0 Debit Bond Interest Expense $550,000, credit Cash $550,000. Debit Bond Interest Expense $42,000 credit Cash $42,000, Debit Bond Interest Payable $40,000; credit Cash $40,000.No entry is needed, since no interest is paid until the bond is due.
A company issued 9%, 15-year bonds with a par value of $560,000 that pay interest semiannually.
A company issued 9%, 15-year bonds with a par value of $560,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $25,200 Credit Cash $25,200. Debit Bond Interest Expense $50,400; credit Cash $50.400. Debit Bond Interest Payable $37,333, credit Cash $37,333 Debit Bond Interest Expense $510,000; credit Cash $510,000,
EKM, Inc issued 8%, 3-year bonds with a par value of $250,000 that pay interest semiannually....
EKM, Inc issued 8%, 3-year bonds with a par value of $250,000 that pay interest semiannually. The bond was issued at market rate. The journal entry to record each semiannual interest payment is: Debit Bond Interest Expense $10,000; credit Cash $10,000. Debit Bond Interest Expense $20,000; credit Cash $20,000. Debit Cash $20,000; credit Bond Interest Expense $20,000. Debit Bond Interest Payable $25,000; credit Cash $25,000. No entry is needed, since no interest is paid until the bond is due.
Question 3 (1 point) A company issued 9%, 15-year bonds with a par value of $490,000...
Question 3 (1 point) A company issued 9%, 15-year bonds with a par value of $490,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is: OA) Debit Bond Interest Expense $440,000; credit Cash $440,000. O B) Debit Bond Interest Expense $22,050; credit Cash $22,050. w O C) Debit Bond Interest Expense $44,100; credit Cash $44,100. O D) Debit Bond Interest Payable $32,667; credit Cash $32,667....
Hillside issues $2,800,000 of 8%, 15-year bonds dated January 1, 2018, that pay interest semiannually on...
Hillside issues $2,800,000 of 8%, 15-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,427,190. Required: 1. Prepare the January 1, 2018, journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the...
Hillside issues $4,000,000 of 6% , 15-year bonds dated January 1, 2017, that pay interest semiannually...
Hillside issues $4,000,000 of 6% , 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. 2d For each semiannual period, complete the table below to calculate the cash payment. 2( For each semiannual period, complete the table below to calculate the straight-line discount amortization. 20 For each semiannual period, complete...
2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid...
2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date was 10%, and the issuer received $95,016 cash for the bonds. Prepare a journal entry to record the issuance of the bond On the first semiannual interest date, what amount of cash should be paid to the holders of these bonds for interest? On January 1, ABC company issued a 12%, 10-year bond with a...
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1....
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January (b) Prepare the general journal entry to record the first interest payment on June 30. 2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date...
Hillside issues $2,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on...
Hillside issues $2,000,000 of 6%, 15-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
The bonds are issued at a price of $1,728,224.
Required:
1. Prepare the January 1 journal entry to record
the bonds’ issuance.
2(a) For each semiannual period, complete the
table below to calculate the cash payment.
2(b) For each semiannual period, complete the
table below to calculate the straight-line discount
amortization.
2(c) For each semiannual period, complete the
table...
Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments....
Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 %, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life...
Question 3 (1 point) A company issued 9%, 15-year bonds with a par value of $490,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is: OA) Debit Bond Interest Expense $440,000; credit Cash $440,000. O B) Debit Bond Interest Expense $22,050; credit Cash $22,050. w O C) Debit Bond Interest Expense $44,100; credit Cash $44,100. O D) Debit Bond Interest Payable $32,667; credit Cash $32,667....
Hillside issues $4,000,000 of 6% , 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. 2d For each semiannual period, complete the table below to calculate the cash payment. 2( For each semiannual period, complete the table below to calculate the straight-line discount amortization. 20 For each semiannual period, complete...
2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date was 10%, and the issuer received $95,016 cash for the bonds. Prepare a journal entry to record the issuance of the bond On the first semiannual interest date, what amount of cash should be paid to the holders of these bonds for interest? On January 1, ABC company issued a 12%, 10-year bond with a...
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January (b) Prepare the general journal entry to record the first interest payment on June 30. 2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date...
Hillside issues $2,000,000 of 6%, 15-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
The bonds are issued at a price of $1,728,224.
Required:
1. Prepare the January 1 journal entry to record
the bonds’ issuance.
2(a) For each semiannual period, complete the
table below to calculate the cash payment.
2(b) For each semiannual period, complete the
table below to calculate the straight-line discount
amortization.
2(c) For each semiannual period, complete the
table...
Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 %, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life...
Most questions answered within 3 hours.
-
A 79-Ω loudspeaker, a 8.0-Ω loudspeaker, and a 3.7-Ω loudspeaker
are connected in parallel across the...
asked 2 minutes ago -
If X has a normal distribution with mean µ =
12 and variance σ2 = 9,...
asked 10 minutes ago -
An example of an operational taxonomic unit
(OTU) is
a. Multiple sequence alignment.
b. Protein sequence....
asked 12 minutes ago -
Electrons flow through a 2.7-mm-diameter aluminum wire at
2.5×10−4 m/s .
How many electrons move through...
asked 12 minutes ago -
For a recent year, McDonald’s (MCD)
company-owned restaurants had the following sales and expenses (in
millions):...
asked 11 minutes ago -
In a sample of 15 men, the mean height was 171 cm. In a sample
of...
asked 12 minutes ago -
In this exercise, we will be refactoring a working program. Code
refactoring is a process to...
asked 1 hour ago -
3
researchers at Cambrige looked at 5,000 firms in Englans and found
that, in terms of...
asked 1 hour ago -
why it is important and how it integrates within ERP? And what
the core challenges of...
asked 3 hours ago -
A strawberry farmer determines that the average weight of
individual strawberries produced by plants in his...
asked 3 hours ago -
Chargaff's results yielded a molar ratio of 0.400 for A to G in
avian tubercle bacillus...
asked 6 hours ago -
Which of the following binds ATP/ADP?
a. microfilaments
b. microtubules
c. intermediate filaments
d. microfilaments and...
asked 6 hours ago