Premium on Bonds =$909,000 - $900,000 =$9,000 | |
Cash interest paid =$900,000*7%*6/12 =$31,500 | |
Amortizatin of premium for each period =$9,000 / 10 =$900 | |
Interest expenses =$31,500 - $900 =$30,600 | |
So Option D is correct answer |
A company issued 5 year, 7% bonds with a par value of $900,000. The market rate when the bonds were issued was 6.5%...
A company issued 5 year, 7% bonds with a par value of $800,000. The market rate when the bonds were issued was 6.5%. The company received $816,845 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: ο 456,00000 ο $28,000.00 ο $29,07180. ο $26,315.50. ο $53,091.80.
A company issued 5-year, 7% bonds with a par value of $1,100,000. The market rate when the bonds were issued was 6.5%. The company received $1,123,162 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
A company issued 5-year, 9% bonds with a par value of $98,000. The company received $95,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is: Multiple Choice Ο $9,230.60. 592οσο. Ο $4,410.00. Ο $8,820.00. Ο Ο $4.20470. Ο $4,615.30.
A company issues 9%, 4-year bonds with a par value of $160,000 on January 1 at a price of $165,386, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: Multiple Choice $14,400. $0. $12,800. $7,200. $6,400 2) A company issued 5-year, 5% bonds with a par value of $91,000. The company received $88,947 for the bonds. Using the straight-line method, the amount of interest expense for the first...
A company issued 10.0%, 5-year bonds with a par value of $240,000. The market rate when the bonds were issued was 11.0%. The company received $230,954.85 cash for the bonds. Using the effective interest method, the amount of interest expense for the second semiannual interest period is: Multiple Choice $12,000.00. $12,741.16. $12,702.52. $24,000.00. $25,443.68.
. A company issued 5-year, 7% bonds with a par value of $250,000. The market rate when the bonds were issued was 4.0% on 1/1/19. Interest is paid 2 times per year on 6.30 and 12.31. Calculate the sale price and record the journal entry for this sale. Using the straight-line method, calculate the amount of interest expense for the first semiannual interest period and record the journal entry
32. A company issued 5-year, 7% bonds with a par value of $100,000. The company received $97,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is: A. $3,294.70. B. $3,500.00. C. $3,705.30. D. $7,000.00. E. $7,410.60.
7. A company issued 6-year, 8% bonds with a par value of $550,000. The market rate when the bonds were issued was 7.5%. The company received $555,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: 8. A corporation issued 8% bonds with a par value of $1,010,000, receiving a $22,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40%...
-6 A company issued 5-year, 7% bonds with a par value of $100,000. The company received $97,947 for the bonds. Using the straight-line method, the amount of mees expense for the first semiannual interest period is: A. $3,500.00 B. $3,294.70 C. $3,705.30 D. $7,410.60 E. $7,000.00 C . Adidas issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adidas received $206,948 in cash proceeds. Which of...
4) Atlantic Company issues 10-year bonds, as follows: Bonds are dated to be issued on: Bonds are issued on Par value of bonds: Stated annual interest rate: Price at date of issue: Semiannual interest payments: Bond issue costs incurred: Amortization method used: January 1, 20x1 June 1, 20x1 $900,000 4% 101.15 January 1 and July 1 $16,100 Straight-line Straight-line amortization of bond issue costs and premium or discount amortization are recorded once ayear, at year-end. SEE NEXT PAGE FOR REQUIREMENTS...