On January 1, 2017, Shay issues $280,000 of 12%, 12-year bonds at a price of 97.25....
On January 1, 2017, Shay issues $280,000 of 12%, 12-year bonds at a price of 97.25. Six years later on January 1, 2023, Shay retires 30% of these bonds by buying them on the open market at 104.75. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount.
1) How much does the company receive when it issues the bonds on January 1, 2017?
2) What is the amount of the discount on the bonds on January 1, 2017?
3) Prepare a journal entry. Record the retirement of 30% of the bonds before maturity on January 1, 2023.
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On January 1, 2017, Shay issues $280,000 of 12%, 12-year bonds
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method is used to amortize any bond discount.
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at issuance?
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Required information The following information applies to the questions displayed below) 1.66 points On January 1,...
Required information The following information applies to the questions displayed below) 1.66 points On January 1, 2017, Shay issues $300,000 of 10%, 15-year bonds at a price of 97.75. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 105.25. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount Skipped 1. How...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Quatro Co. issues bonds dated January 1, 2o17, with a par value of $850,000. The bonds'...
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Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 [The following...
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Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies...
Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used...
On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year
bonds. The bonds sell for $391,000. Six years later, on January 1,
2025, Shay retires these bonds by buying them on the open market
for $419,000. All interest is accounted for and paid through
December 31, 2024, the day before the purchase. The straight-line
method is used to amortize any bond discount.
1. What is the amount of the discount on the bonds
at issuance?
2. How much amortization...
On January 1, 2019, Shay Company issues $290,000 of 11%, 20-year bonds. The bonds sell for $282,750. Six years later on January 2025, Shay retires these bonds by buying them on the open market for $303,050. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straightline method is used to amortize any bond discount 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of...
Required information The following information applies to the questions displayed below) 1.66 points On January 1, 2017, Shay issues $300,000 of 10%, 15-year bonds at a price of 97.75. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 105.25. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount Skipped 1. How...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Quatro Co. issues bonds dated January 1, 2o17, with a par value of $850,000. The bonds' annual contract rate is 12%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $893,131. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over...
Required information Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 [The following information applies to the questions displayed below On January 1, 2017, Shay issues $700,000 of 10%, 15-year bonds at a price of 9734 Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104½ All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method...
Exercise 10-9 Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 (The following information applies to the questions displayed below.) On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used...
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