Premium Amortization On the first day of the fiscal year, a company issues a $6,400,000, 6%,...
Premium Amortization
On the first day of the fiscal year, a company issues a $6,400,000, 6%, 6-year bond that pays semiannual interest of $192,000 ($6,400,000 × 6% × ½), receiving cash of $7,076,822.
Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
| Cash | |||
| Premium on Bonds Payable | |||
| Bonds Payable |
Feedback
Homework Answers
Par value of bonds = $6,400,000
Cash receipts from issue of bonds = $7,076,822
Premium on Bonds Payable = Cash receipts from issue of bonds - Par value of bonds
= 7,076,822-6,400,000
= $676,822
Bond life = 6 years
= 6 x 2
= 12 semi annual periods
Semi annual amortization of bonds premium = Premium on Bonds Payable/Bond life
= 676,822/12
= $56,402
| General Journal | Debit | Credit |
| Interest expense | $135,598 | |
| Premium on bonds payable | $56,402 | |
| Cash | $192,000 |
Please give a positive rating if you are satisfied with this solution and if you have any query kindly ask.
Thanks!!!
Add Answer to:
Premium Amortization
On the first day of the fiscal year, a company issues a
$6,400,000, 6%,...
1) Premium Amortization On the first day of the fiscal year, a company issues a $7,800,000,...
1) Premium Amortization On the first day of the fiscal year, a company issues a $7,800,000, 11%, 5-year bond that pays semiannual interest of $429,000 ($7,800,000 × 11% × ½), receiving cash of $8,417,190. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Cash Premium on Bonds Payable Bonds Payable 2) Discount Amortization On the first day of the...
A Premium Amortization On the first day of the fiscal year, a company issues a $8,000,000,...
A
Premium Amortization On the first day of the fiscal year, a company issues a $8,000,000, 11%, 7-year bond that pays semiannual interest of $440,000 ($8,000,000 x 11% x 2), receiving cash of $8,395,947. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues...
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues an $5,800,000, 8%, 9-year bond that pays semiannual interest of $232,000 ($5,800,000 × 8% × ½), receiving cash of $6,182,502. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Premium on Bonds Payable Bonds Payable On the first day of the fiscal year, a company issues a $6,000,000, 11%, 4-year bond that pays semiannual interest of...
Premium Amortization On the first day of the fiscal year, a company issues a $3,300,000, 8%,...
Premium Amortization On the first day of the fiscal year, a company issues a $3,300,000, 8%, 9-year bond that pays semiannual interest of $132,000 ($3,300,000 × 8% × ½), receiving cash of $4,010,490. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash
Premium Amortization On the first day of the fiscal year, a company issues an $7,200,000, 10%,...
Premium Amortization On the first day of the fiscal year, a company issues an $7,200,000, 10%, 9-year bond that pays semiannual interest of $360,000 ($7,200,000 × 10% × ½), receiving cash of $7,637,760. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues...
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $5,500,000, 6%, 8-year bond that pays semiannual interest of $165,000 ($5,500,000 x 6% %). receiving cash of $5,859,013. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Check My Work 2 more Check My Works remaining Premium Amortization On the first day of the fiscal year, a company issues a $5,500,000, 10%, 6-year bond that pays...
Premium Amortization on the first day of the fiscal year, a company issues a $6,000,000, 796, 6-year bond that pays semiannual interest of $210,000 ($6,000,000 x 796 × Y), receiving cash of $6,951,78...
Premium Amortization on the first day of the fiscal year, a company issues a $6,000,000, 796, 6-year bond that pays semiannual interest of $210,000 ($6,000,000 x 796 × Y), receiving cash of $6,951,781. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Accounts Payable Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable
Premium Amortization on the...
Premium Amortization On the first day of the fiscal year, a company issues a $4,400,000, 6%,...
Premium Amortization On the first day of the fiscal year, a company issues a $4,400,000, 6%, 4-year bond that pays semiannual interest of $132,000 (54,400,000 x 6%*), receiving cash of $4,894,071 Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
On the first day of the fiscal year, a company issues a $8,900,000, 6%, 5-year bond...
On the first day of the fiscal year, a company issues a $8,900,000, 6%, 5-year bond that pays semiannual interest of $267,000 ($8,900,000 × 6% × ½), receiving cash of $9,699,451. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Premium on Bonds Payable Bonds Payable On the first day of the fiscal year, a company issues a $8,800,000, 10%, 9-year bond that pays semiannual interest of $440,000 ($8,800,000 × 10% ×...
Premium Amortization On the first day of the fiscal year, a company issues a $2,100,000, 7%, 6-year bond that pays semi...
Premium Amortization On the first day of the fiscal year, a company issues a $2,100,000, 7%, 6-year bond that pays semiannual interest of $73,500 ($2,100,000 x 7% x 2), receiving cash of $2,315,412. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash
A
Premium Amortization On the first day of the fiscal year, a company issues a $8,000,000, 11%, 7-year bond that pays semiannual interest of $440,000 ($8,000,000 x 11% x 2), receiving cash of $8,395,947. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $5,500,000, 6%, 8-year bond that pays semiannual interest of $165,000 ($5,500,000 x 6% %). receiving cash of $5,859,013. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Check My Work 2 more Check My Works remaining Premium Amortization On the first day of the fiscal year, a company issues a $5,500,000, 10%, 6-year bond that pays...
Premium Amortization on the first day of the fiscal year, a company issues a $6,000,000, 796, 6-year bond that pays semiannual interest of $210,000 ($6,000,000 x 796 × Y), receiving cash of $6,951,781. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Accounts Payable Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable
Premium Amortization on the...
Premium Amortization On the first day of the fiscal year, a company issues a $4,400,000, 6%, 4-year bond that pays semiannual interest of $132,000 (54,400,000 x 6%*), receiving cash of $4,894,071 Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
Premium Amortization On the first day of the fiscal year, a company issues a $2,100,000, 7%, 6-year bond that pays semiannual interest of $73,500 ($2,100,000 x 7% x 2), receiving cash of $2,315,412. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash
Most questions answered within 3 hours.
-
the accounting department for a firm has provided a cost
function C(x)=280z+6440. The sales department has...
asked 9 minutes ago -
A catapult on a cliff launches a large round rock towards a ship
on the ocean...
asked 12 minutes ago -
A market research firm reported that the mean annual earning of
all family practitioners in the...
asked 21 minutes ago -
How does organizational behavior typically differ in a
centralized organization vs. in a decentralized organization? Based...
asked 24 minutes ago -
[2] What happens when you try to create a hard link to a
directory? [2] Create...
asked 29 minutes ago -
Construct a molecular orbital diagram for the formation of N2; show
only the valence orbitals of...
asked 29 minutes ago -
In choosing what music to play at a charity fund raising event,
Cory needs to have...
asked 31 minutes ago -
When a heating a coil made of 34.0 m of 1.0 mm diameter Nichrome
wire is...
asked 43 minutes ago -
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because
of its excellent product and excellent...
asked 46 minutes ago -
Demonstrate from planetary data that the speeds of out orbiters
are lower then inner orbiters.
asked 57 minutes ago -
C++ Programming question
For this exercise, you will receive two string inputs, which are
the names...
asked 57 minutes ago -
A person borrowed $30000 to finance the purchase of a new
vehicle. The loan will be...
asked 1 hour ago