On January 1, 20X1 Shapiro and Sons, Inc. issued 9% bonds with a face value of...
On January 1, 20X1 Shapiro and Sons, Inc. issued 9% bonds with a face value of $700,000 at a discount.
The bonds yield 10%, pay interest annually, and were sold for $656,992.
Shapiro and Sons, Inc. uses the effective interest method for amortizing bond premiums and discounts.
How much interest expense will Shapiro and Sons, Inc. report on its 20X1 Income Statement?
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On January 1, 20X1 Shapiro and Sons, Inc. issued 9% bonds with a
face value of...
6 On January 1, 2018, Solis Co. issued its 10% bonds in the face amount of...
6 On January 1, 2018, Solis Co. issued its 10% bonds in the face amount of $4,000,000, which mature on January 1, 2028. The bonds were issued for $3,100,000 to yield 8%, resulting in bond discount of $900,000. Solis uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. What is the amount of Solis's adjusted unamortized bond premium at December 31, 2019?
Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of...
Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of $92,000 and pay interest every January 1 and July 1. The bonds were sold for $110,962 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of Oa. $3,680 Ob. $4,600 Oc. $5,548 Od. $4,438
Mitchell Inc. issued 60, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest...
Mitchell Inc. issued 60, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest annually each 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 schedule for the full bond term. c. Prepare journal entries on the following dates....
On January 1, 2018, Bonita Industries issued its 11% bonds in the face amount of $8090000,...
On January 1, 2018, Bonita Industries issued its 11% bonds in the face amount of $8090000, which mature on January 1, 2028. The bonds were issued for $9520000 to yield 9%, resulting in bond premium of $1430000. Bonita uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2018, Bonita's adjusted unamortized bond premium should be
1. On July 1, 2017, Paton Corp. issued 9% bonds in the face amount of $8,000,000,...
1. On July 1, 2017, Paton Corp. issued 9% bonds in the face amount of $8,000,000, which mature on July 1, 2023. The bonds were issued for $7,648,000 to yield 10%, resulting in a bond discount of $352,000. Paton uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. On June 30, 2019, Paton's unamortized bond discount should be which of the following? 2. The Coral Company issues $10,000,000, 7.8%, 20-year bonds to yield 8%...
2. On May 1, Mason Company issued $3,500,000,6% bonds for face value plus including accrued interest....
2. On May 1, Mason Company issued $3,500,000,6% bonds for face value plus including accrued interest. Interest is payable semiannually on January 1 and July 1. Prepare the journal entries to record the May 1 bond issue and the July 1 interest payment (2 points) Date Account Titles Debit Credit 3. Greer Industries issued $6,000,000 of 6% debentures on May 1, 2019 and received cash totaling $5,513,346. The bonds pay interest semiannually on May 1 and November 1. The firm...
1. On January 1, 2020, Breton Company issued its 8% bonds in the face amount of...
1. On January 1, 2020, Breton Company issued its 8% bonds in the face amount of $3,000,000, which mature on January 1, 2030. The bonds were issued for $3,441,591 to yield 6%. Geller uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. Interest Expense for 2023 is: Answer $_______________ 2. On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two detachable stock warrants. Shortly after issuance,...
On January 1, Bramble Corp. issued $6200000, 9% bonds for $5895000. The market rate of interest...
On January 1, Bramble Corp. issued $6200000, 9% bonds for
$5895000. The market rate of interest for these bonds is 10%.
Interest is payable annually on December 31. Bramble uses the
effective-interest method of amortizing bond discount. At the end
of the first year, Bramble should report unamortized bond discount
of
$246050.
$273500.
$243000.
$262500.
question 14-4 P10 LO 14.3 face value b Umption of Effective Interest Rate On June 30,...
question 14-4
P10 LO 14.3 face value b Umption of Effective Interest Rate On June 30, 2017 face value bonds for S761,150.96. On December 31, 2019, Gaston $734,645.28. The bonds were dated January 1, 2019, pay 30, and are due December 31, 2026. E UF the bonds and debt issuance costs Kate On June 30, 2019, Gaston Corporation sold $800,000 of 11% er 31, 2019, Gaston sold $700,000 of this same bond issue for nuary 1, 2019, pay interest semiannually...
On July 1, 2019, Sugarland Company issued $2,000,000 face value of 10%, 10-year bonds at $1,770,602,...
On July 1, 2019, Sugarland Company issued $2,000,000 face value of 10%, 10-year bonds at $1,770,602, a price which implies an effective interest rate of 12%. Sugarland uses the effective-interest method to amortize bond premiums and discounts. These bonds pay interest semiannually on June 30 and December 31. Required: Compute the answers to the following questions: (a.) How much interest will Sugarland pay (in cash) every six months? (b.)What is the dollar amount of the premium or discount on these...
Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of $92,000 and pay interest every January 1 and July 1. The bonds were sold for $110,962 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of Oa. $3,680 Ob. $4,600 Oc. $5,548 Od. $4,438
2. On May 1, Mason Company issued $3,500,000,6% bonds for face value plus including accrued interest. Interest is payable semiannually on January 1 and July 1. Prepare the journal entries to record the May 1 bond issue and the July 1 interest payment (2 points) Date Account Titles Debit Credit 3. Greer Industries issued $6,000,000 of 6% debentures on May 1, 2019 and received cash totaling $5,513,346. The bonds pay interest semiannually on May 1 and November 1. The firm...
On January 1, Bramble Corp. issued $6200000, 9% bonds for
$5895000. The market rate of interest for these bonds is 10%.
Interest is payable annually on December 31. Bramble uses the
effective-interest method of amortizing bond discount. At the end
of the first year, Bramble should report unamortized bond discount
of
$246050.
$273500.
$243000.
$262500.
question 14-4
P10 LO 14.3 face value b Umption of Effective Interest Rate On June 30, 2017 face value bonds for S761,150.96. On December 31, 2019, Gaston $734,645.28. The bonds were dated January 1, 2019, pay 30, and are due December 31, 2026. E UF the bonds and debt issuance costs Kate On June 30, 2019, Gaston Corporation sold $800,000 of 11% er 31, 2019, Gaston sold $700,000 of this same bond issue for nuary 1, 2019, pay interest semiannually...
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