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Because, market interest rate (9%) is lower than coupon rate (10%), therefore, bond will be issued at a premium of $2000.
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Please answer question in a very dummified way! Prepare journal entries for the following four events...
On January 1, 2018, Loop Raceway issued 620 bonds, each with a face value of $1,000,...
On January 1, 2018, Loop Raceway issued 620 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $604,002. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare...
P12-5 a,b,c,d please solve P12-5 a,b,c,d by referring P12-4 P12-5 a,b,c,d What is the economic value...
P12-5 a,b,c,d
please solve P12-5 a,b,c,d by referring P12-4
P12-5 a,b,c,d
What is the economic value of the bonds on December 31,2001? CHAPTER 12 LONG-TERM LIABILITIES g. What should the liability value and the economic value of the bonds be on January 1, 2011, the maturity date of the bonds? Explain. 213 oh. Prepare the entry to record the retirement of the bonds on January 1,2011. P12-5 Refer to P12-4. Assume that on June 30, 2009, market interest rates soared...
On January 1, 2018, Surreal Manufacturing issued 530 bonds, each with a face value of $1,000,...
On January 1, 2018, Surreal Manufacturing issued 530 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market Interest rate was 4 percent, so the total proceeds from the bond issue were $515,294. Surreal uses the effective-Interest bond amortization method and adjusts for any rounding errors when recording Interest in the final year. Required: 1. Prepare...
White the journal entries necessary to record the following events January 1, 2018 issued 5600,000 of...
White the journal entries necessary to record the following events January 1, 2018 issued 5600,000 of 5 year, 6% bonds at a price of 98. Interest on the bonds is payable semiannually on July and January 1. The market rate of interest at the time of the issue was 6.5%. The bonds are callable after 1 year at a price of 102 July 1. 2018 Paid semiannual interest on bonds. (Use effective interest rate amortization) Amortization Table Carrying value Cash...
On January 1, 2018, Surreal Manufacturing issued 660 bonds, each with a face value of $1,000,...
On January 1, 2018, Surreal Manufacturing issued 660 bonds, each with a face value of $1,000, a stated interest rate of 3 percent pald annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market Interest rate was 4 percent, so the total proceeds from the bond issue were $641,687. Surreal uses the simplified effective-Interest bond amortization method and adjusts for any rounding errors when recording Interest in the final year. Required: 1....
P12-4 (A) through (E) 4 e second lease payment, enton Computer Cacat of dine) at December...
P12-4
(A) through (E)
4 e second lease payment, enton Computer Cacat of dine) at December 31.1 Prepare the journal entry required to Cola's income statem tely after acquiring th on Coca-Cola's ability he to Parure the journal entry required to record these 2001. What will be the effect of the capital lease on Coca- Compute Coca-Cola's debt/equity ratio immedia Comment on the impact of the lease agreement on ditional long-term financing 206 coupon, 10-year bond cre sold to yield...
Check my work On January 1, 2018. Loop Raceway issued 640 bonds, each with a face...
Check my work On January 1, 2018. Loop Raceway issued 640 bonds, each with a face value of $1000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $623.205. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year....
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate...
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 5.50 percent, so the total proceeds from the bond issue were $101,347. Methodical uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare...
Prepare JEs and Adjusting (AJEs). I prepared Both journal entries and some Adjusted Entries have been...
Prepare JEs and Adjusting (AJEs). I prepared Both journal entries and some Adjusted Entries have been prepared. I wasn't sure how to adjust the journal entry for 1/15 and others. My professor doesn't explain anything, and well this is why im here. Prepare Income Statement (including OCI) and a Balance Sheet in Good form for 12/31/X1. Prepare closing entries. (if u can show with steps how to do the income statement, balance sheet and closing entries.) Assume cash transaction in...
On January 1, 2018, Loop Raceway issued 580 bonds, each with a face value of $1,000,...
On January 1, 2018, Loop Raceway issued 580 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $564,485. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond...
P12-5 a,b,c,d
please solve P12-5 a,b,c,d by referring P12-4
P12-5 a,b,c,d
What is the economic value of the bonds on December 31,2001? CHAPTER 12 LONG-TERM LIABILITIES g. What should the liability value and the economic value of the bonds be on January 1, 2011, the maturity date of the bonds? Explain. 213 oh. Prepare the entry to record the retirement of the bonds on January 1,2011. P12-5 Refer to P12-4. Assume that on June 30, 2009, market interest rates soared...
On January 1, 2018, Surreal Manufacturing issued 530 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market Interest rate was 4 percent, so the total proceeds from the bond issue were $515,294. Surreal uses the effective-Interest bond amortization method and adjusts for any rounding errors when recording Interest in the final year. Required: 1. Prepare...
White the journal entries necessary to record the following events January 1, 2018 issued 5600,000 of 5 year, 6% bonds at a price of 98. Interest on the bonds is payable semiannually on July and January 1. The market rate of interest at the time of the issue was 6.5%. The bonds are callable after 1 year at a price of 102 July 1. 2018 Paid semiannual interest on bonds. (Use effective interest rate amortization) Amortization Table Carrying value Cash...
On January 1, 2018, Surreal Manufacturing issued 660 bonds, each with a face value of $1,000, a stated interest rate of 3 percent pald annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market Interest rate was 4 percent, so the total proceeds from the bond issue were $641,687. Surreal uses the simplified effective-Interest bond amortization method and adjusts for any rounding errors when recording Interest in the final year. Required: 1....
P12-4
(A) through (E)
4 e second lease payment, enton Computer Cacat of dine) at December 31.1 Prepare the journal entry required to Cola's income statem tely after acquiring th on Coca-Cola's ability he to Parure the journal entry required to record these 2001. What will be the effect of the capital lease on Coca- Compute Coca-Cola's debt/equity ratio immedia Comment on the impact of the lease agreement on ditional long-term financing 206 coupon, 10-year bond cre sold to yield...
Check my work On January 1, 2018. Loop Raceway issued 640 bonds, each with a face value of $1000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $623.205. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year....
On January 1, 2018, Loop Raceway issued 580 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $564,485. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond...
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