Homework Answers
Premium on bonds = $750000 x 1.04 - 750000 = 30000
Total interest cost = interest paid - premium on bonds
= 750000*8%*5 - 30000
= $ 270000
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Multiple Choice Question 215 Sandhill Co. issued $750000 of 8%, 5-year bonds at 104, which pay...
Carla Vista Co. issued $1090000 of 8%, 5-year bonds at 107, which pay interest annually. Assuming...
Carla Vista Co. issued $1090000 of 8%, 5-year bonds at 107, which pay interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year? O $1158670 O $1173930 $1166300 $1151040
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Multiple Choice Question 221 On January 1, Riverbed Corp issues $3360000, 5-year, 12% bonds at 97...
Multiple Choice Question 221 On January 1, Riverbed Corp issues $3360000, 5-year, 12% bonds at 97 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a debit to Interest Expense, 201600. , debit to Interest Expense, 403200. O credit to Discount on Bonds payable, 20160. O credit to Discount on Bonds Payable, $10080. Question Attempts: 0 of 1 used SAVE FOR...
Sandhill Co. sold $3,300,000, 7%, 10-year bonds on January 1, 2017. The bonds were dated January...
Sandhill Co. sold $3,300,000, 7%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. Prepare the journal entries to record interest expense for 2017 under both of the bond issuances assuming they sold at: (1) 104 and (2) 97
Exercise 10-25 Sandhill Co. issued $477,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest...
Exercise 10-25 Sandhill Co. issued $477,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for bond premi discount Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) The issuance of the bonds (a) The accrual of interest and the premium amortization on December 31, 2022 (b) (c) The payment of interest on January 1,...
Exercise 10-25 Sandhill Co. issued $510,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest...
Exercise 10-25 Sandhill Co. issued $510,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for 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) (b) (c) (d) The issuance of the bonds. The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on...
Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of...
Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $590,000 and a coupon interest rate of 6%, with interest payable semi-annually. (a) Prepare a partial bond amortization table for the first two interest payments assuming that interest is paid on July 1 and January 1 and that the bonds sold when the market interest rate was 5%. (Round answers to o decimal places, e.g. 5,255.) CARVEL CORP. Bond Premium Amortization On January 1,...
ELA T Question Sandhill Co. is about to issue $105,000 of 8-year bonds that pay a...
ELA T Question Sandhill Co. is about to issue $105,000 of 8-year bonds that pay a 8.0% annual interest rate, with interest payable semi-annually. The market interest rate is 5%. How much can Sandhil expect to receive for the sale of these bonds? (For calculation purposes, we decimal places as displayed in the factor table provided. Round final answer to 2 decimal places, e.g. 5,275.25.) Click here to view the factor table PRESENT VALUE OF Click here to view the...
Multiple Choice Question 231 Clumber Company issued 58250000 of 6%, 10-year bonds on one of its...
Multiple Choice Question 231 Clumber Company issued 58250000 of 6%, 10-year bonds on one of its interest dates for $7125500 to yield an effective annual rate of 8%. The effective interest method of amortization is to be used. The journal entry to be recorded at the end of the second year for the payment of interest and the amortization of discount will include a CALCULATOR PRINTER VERSION BACK ME • Credit to Cash for $576043. credit to Discount on Bonds...
Blossom Company issued $2960000 of 6%, 5-year bonds at 97, which pay interest annually. Assuming straight-line...
Blossom Company issued $2960000 of 6%, 5-year bonds at 97, which pay interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?
Carla Vista Co. issued $1090000 of 8%, 5-year bonds at 107, which pay interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year? O $1158670 O $1173930 $1166300 $1151040
Wildhorse Co. issued $780000 of 8%, 5-year bonds at 109, which pay interest annually. Assuming straight-line amortization, what is the total interest cost of the bonds? $171600 $312000 $382200 $241800
Multiple Choice Question 221 On January 1, Riverbed Corp issues $3360000, 5-year, 12% bonds at 97 with interest payable on January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a debit to Interest Expense, 201600. , debit to Interest Expense, 403200. O credit to Discount on Bonds payable, 20160. O credit to Discount on Bonds Payable, $10080. Question Attempts: 0 of 1 used SAVE FOR...
Exercise 10-25 Sandhill Co. issued $477,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for bond premi discount Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) The issuance of the bonds (a) The accrual of interest and the premium amortization on December 31, 2022 (b) (c) The payment of interest on January 1,...
Exercise 10-25 Sandhill Co. issued $510,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for 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) (b) (c) (d) The issuance of the bonds. The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on...
Question 2 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $590,000 and a coupon interest rate of 6%, with interest payable semi-annually. (a) Prepare a partial bond amortization table for the first two interest payments assuming that interest is paid on July 1 and January 1 and that the bonds sold when the market interest rate was 5%. (Round answers to o decimal places, e.g. 5,255.) CARVEL CORP. Bond Premium Amortization On January 1,...
ELA T Question Sandhill Co. is about to issue $105,000 of 8-year bonds that pay a 8.0% annual interest rate, with interest payable semi-annually. The market interest rate is 5%. How much can Sandhil expect to receive for the sale of these bonds? (For calculation purposes, we decimal places as displayed in the factor table provided. Round final answer to 2 decimal places, e.g. 5,275.25.) Click here to view the factor table PRESENT VALUE OF Click here to view the...
Multiple Choice Question 231 Clumber Company issued 58250000 of 6%, 10-year bonds on one of its interest dates for $7125500 to yield an effective annual rate of 8%. The effective interest method of amortization is to be used. The journal entry to be recorded at the end of the second year for the payment of interest and the amortization of discount will include a CALCULATOR PRINTER VERSION BACK ME • Credit to Cash for $576043. credit to Discount on Bonds...
Blossom Company issued $2960000 of 6%, 5-year bonds at 97, which pay interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?
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