Homework Answers
Journal
| Date | Account title | Debit | Credit |
| Jan.1, 2019 | Cash | 500,000 | |
| Bonds payable | 500,000 | ||
| June 30, 2019 | Interest expense | 20,000 | |
| Cash | 20,000 | ||
| Dec. 31, 2019 | Interest expense | 20,000 | |
| Cash | 20,000 |
Semi annual interest = 500,000 x 8% x 6/12
= $20,000
Kindly comment if you need further assistance. Thanks
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On January 1, 2019, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest. (a) Prepare the general journal entry to record the issuance of the bonds on January 1,2019 the co...
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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...
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Legacy issues $590,000 of 7.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on...
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They are issued at $542,310 when the market rate is 10%.
Required:
1. Prepare the January 1 journal entry to record
the bonds' issuance.
2. Complete the below table to calculate the total
bond interest expense to be recognized over the bonds' life.
3. Prepare an effective interest amortization
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4. Prepare the...
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Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the...
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...
Exercise 10-8 Straight-Line: Recording bond issuance and premium amortization LO P3 Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $95,000 and semiannual interest payments. (0) Semiannual Period-End January 1, "issuance June 30, first payment December 31, second payment Unamortized Premium $8,011 7,210 carrying Value $ 103,011 102,210 101,409 (2) Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1...
Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $105,000 and semiannual interest payments. (0) (1) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Un amortized Premium $8,211 7,390 6,569 Carrying Value $113,211 112,390 111,569 (2) Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c)...
Legacy issues $590,000 of 7.5%, four-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
They are issued at $542,310 when the market rate is 10%.
Required:
1. Prepare the January 1 journal entry to record
the bonds' issuance.
2. Complete the below table to calculate the total
bond interest expense to be recognized over the bonds' life.
3. Prepare an effective interest amortization
table for the bonds' first two years.
4. Prepare the...
Hillside issues $3,000,000 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 $3,671,990. 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. 21b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table...
Exercise 10-8 Straight-Line: Recording bond issuance and premium amortization LO P3 Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $97,000 and semiannual interest payments. Semiannual Period-End Unamortized Premium Unamortized P Carrying Value January 1, Issuance $8,051 $105.051 June 30, first payment 7.246 104,246 December 31, second payment 6,441 103,441 (O) (1) Use the above straight-line bond amortization table and prepare journal entries for the following (a) The issuance of bonds on...
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Hillside issues $2,900,000 of 9%, 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 $3,549,590 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2a) 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 21c) For each semiannual period, complete the...
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