Homework Answers
| Charger battery | ||||
| Table values are based on : | ||||
| n = 7 | ||||
| I = 9% | ||||
| Cash flow | Table value | Amount | Present Value | |
| Par value | 0.547 | 200000 | 109400 | |
| Interest | 5.033 | 22000 | 110726 | ( 200000 * 11% ) |
| Price | 220126 | |||
| Price of the bonds = $ 220132 ( given ) | ||||
| Bond Amortisation schedule | ||||
| Date | A.Cash paid | B.Intt. Exp.( carrying value * 9%) | C. Bond Premium (a - b) | D.Carrying value ( d-C) |
| Jan. 1, 2020 | 220132 | |||
| Dec.31, 2021 | 22000 | 19812 | 2188 | 217944 |
| Dec.31, 2022 | 22000 | 19615 | 2385 | 215559 |
| Date | Account Title | Debit ( $) | Credit ($) | |
| Dec.31, 2021 | Interest exp. | 19812 | ||
| Premium on bonds payable | 2188 | |||
| Cash | 22000 | |||
| Dec.31, 2022 | Interest exp. | 19615 | ||
| Premium on bonds payable | 2385 | |||
| Cash | 22000 | |||
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Cornerstone Exercise 9-38 Bonds issued at a Premium (Effective Interest) Charger Battery issued $200,000 of 115, 7-...
Cornerstone Exercise 9-38 Bonds Issued at a Premium (Effective Interest) Charger Battery issued $200,000 of 11%,...
Cornerstone Exercise 9-38 Bonds Issued at a Premium (Effective Interest) Charger Battery issued $200,000 of 11%, 7-year bonds on January 1, 2020, for $220,132. Interest is paid annually on December 31. The market rate of interest is 9%. Required: Prepare the journal entries for December 31, 2021 and 2022. If required, round your answers to the nearest whole dollar. 19,812 x Dec 31, 2021 2004 Interest Expense Premium on Bonds Payable Cash 22,000 Dec 31, 2022 Interest Expense 19,615 x...
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Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $750,000 in...
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please explain how to find cash,bond payable, and interst
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Brief Exercise 9-56 Bonds Issued at a Discount (Effective Interest) Crafty Corporation received $472,088 of cash upon issuance of 500 $1,000 par value bonds. Each bond has a stated rate of 5% and will mature on December 31, 2026, 7 years after the issuance of the bonds. Interest is paid annually on December 31. The market rate of interest is 6%. Required: Prepare the journal entry for December 31, 2022. If required, round amounts to the nearest whole dollar. 2022...
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Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $750,000 in 6% bonds (payable on December 31, 2029) on January 1, 2020, for $675,000. Interest is paid on June 30 and December 31. The market rate of interest is 10%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec. 31, 2020 Interest Expense 26,250 X Discount on Bonds Payable 3,750 X Cash 22,500 Interest Expense...
eBook Calculator Cornerstone Exercise 9-34 Issued Bonds at a Discount (Effective Interest) Crafty Corporation issued $475,000 of 5%, 7-year bonds on January 1, 2020, for $448,484. Interest is paid annually on December 31. The market rate of interest is 6%. Required: Basic Prepare the journal entry for December 31, 2020 and 2021. If required, round your answers to the nearest whole dollar Dec 31, 2020 Interest Expense Cash Discount on Bonds Payable Dec 31, 2021 Interest Expense Cash Discount om...
Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $750,000 in 6% bonds (payable on December 31, 2029) on January 1, 2020, for $675,000. Interest is paid on June 30 and December 31. The market rate of interest is 10%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec. 31, 2020 Interest Expense Discount on Bonds Payable Cash 111 111 Dec. 31, 2021 Interest Expense...
Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $750,000 in 6% bonds (payable on December 31, 2029) on January 1, 2020, for $675,000. Interest is paid on June 30 and December 31. The market rate of interest is 10%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec. 31, 2020 Interest Expense 26,250 X Discount on Bonds Payable 3,750 X Cash 22,500 Interest Expense...
Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $750,000 in 6% bonds (payable on December 31, 2029) on January 1, 2020, for $675,000. Interest is paid on June 30 and December 31. The market rate of interest is 10%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec. 31, 2020 Interest Expense 26,250 x Discount on Bonds Payable 3,750 x Cash 22,500 Dec. 31,...
please explain how to find cash,bond payable, and interst
expense
Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $650,000 in 8% bonds (payable on December 31, 2029) on January 1, 2020, for $617,500: Interest is paid on June 30 and December 31. The market rate of interest is 99% Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar Dec 31, 2020 Interest Expen Discount on...
Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Premium Mitchell Inc. issued 120, 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...
Brief Exercise 9-56 Bonds Issued at a Discount (Effective Interest) Crafty Corporation received $472,088 of cash upon issuance of 500 $1,000 par value bonds. Each bond has a stated rate of 5% and will mature on December 31, 2026, 7 years after the issuance of the bonds. Interest is paid annually on December 31. The market rate of interest is 6%. Required: Prepare the journal entry for December 31, 2022. If required, round amounts to the nearest whole dollar. 2022...
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