Homework Answers
Journal entry
| Date | account and explanation | Debit | Credit |
| Apr 1 | Cash (500000*1.06) | 530000 | |
| Bonds payable | 500000 | ||
| Premium on bonds payable | 30000 | ||
| (To record bond issue) | |||
| Sep 30 | Interest expense (530000*8.9%*6/12) | 23585 | |
| Premium on bonds payable | 165 | ||
| Interest payable (500000*9.5%*6/12) | 23750 | ||
| (To record interest accrued) | |||
| Oct 1 | Interest payable | 23750 | |
| Cash | 23750 | ||
| (To record interest paid) | |||
Add Answer to:
3. On April 1, 2018, the Mayfair Drapery Co. sold $ 500,000 of its 9.5%, twenty-...
2. On April 1, 2014, Smart Way Freight Company sold $200,000 of its 9.5 percent, 20-year...
2. On April 1, 2014, Smart Way Freight Company sold $200,000 of its 9.5 percent, 20-year bonds at 106. The semiannual interest payment dates are April 1 and October 1. The market interest rate is 8.9 percent. The firm’s fiscal year ends March 31. Prepare journal entries to record the sale of the bonds on April 1, the accrual of interest and amortization of premium on March 31, and the first interest payment on October 1. Use the effective interest...
1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2017. The bonds pay interest...
1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2017. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2020. The bonds yield 12%. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. Can you show me how to compute the cash amount and interest expense?
On December 31, 2018, Squidward Corporation issued $500,000, 8%, 20-year bonds for $414,210 cash when the...
On December 31, 2018, Squidward Corporation issued $500,000, 8%, 20-year bonds for $414,210 cash when the market rate of interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Squidward uses the effective interest method of amortization to amortize and premium or discount. What is the face value of the bond? exact number, no tolerance On December 31, 2018, Squidward Corporation issued $500,000, 8%, 20-year bonds for $414,210 cash when the market rate of interest was...
On December 31, 2018, Squidward Corporation issued $500,000, 8%, 20-year bonds for $414,210 cash when the...
On December 31, 2018, Squidward Corporation issued $500,000, 8%, 20-year bonds for $414,210 cash when the market rate of Interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Squidward uses the effective interest method of amortization to amortize and premium or discount. Was this bond issued at a premium or discount? Type in a 1 for discount and a 2 for premium. exact number, no tolerance On December 31, 2018, Squidward Corporation issued $500,000, 8%,...
On December 31, 2018, Squidward Corporation issued $500,000, 8 % , 20-year bonds for $414,210 cash...
On December 31, 2018, Squidward Corporation issued $500,000, 8 % , 20-year bonds for $414,210 cash when the market rate of interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Squidward uses the effective interest method of amortization to amortize and premium or discount. Give the general journal entries required on (1) December 31, 2018 to record the issue of the bonds and (2) June 30, 2018, the first interest payment date. Make your entries...
1 2 Environmental Concerns Limited (ECL) issued $500,000 of 10 year, 6.5% bonds payable at par...
1
2
Environmental Concerns Limited (ECL) issued $500,000 of 10 year, 6.5% bonds payable at par value on May 1, 2018. The bonds pay interest each April 30 and October 31, and the company ends its accounting year on December 31. Requirements: 1. Fill in the blanks: a. ECL's bonds are priced at b. When ECL's issued its bonds, the market interest rate was 2. Journalize for ECL: a. Issuance of the bonds on May 1, 2018. b. Payment of...
Crane Co. sells $507,000 of 8% bonds on March 1, 2020. The bonds pay interest on...
Crane Co. sells $507,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)
b.How much is the amortization? c. How much is interest expense? LO5 Straight-Line Method E 10....
b.How much is the amortization? c. How much is interest expense? LO5 Straight-Line Method E 10. Nina Corporation issued $8,000,000 in 6 percent, five-year bonds on March 1, 2010, at 92. The semiannual interest payment dates are September 1 and March 1. Prepare entries in journal form for the issue of the bonds by Nina on March 1, 2010, and the first two interest payments on September 1, 2010 and March 1, 201l. Use the straight-line method and ignore year-end...
Angel Corporation has $10,000,000 of 8.0% 25 year bonds dated May 1, 2018 with interest payable...
Angel Corporation has $10,000,000 of 8.0% 25 year bonds dated May 1, 2018 with interest payable on April 30 and October 31. The corporation’s fiscal year ends on December 31, and it uses the straight line method to amortize bond premiums and discounts. Assume the bonds are issued at 98.5 on May 1, 2018 Show your work and computations. How much cash will be received on the sale? How much is recorded as Bond Payable at the time of the sale? What...
Oriole Co. sells $435,000 of 12% bonds on June 1, 2020. The bonds pay interest on...
Oriole Co. sells $435,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Oriole buys back $130,500 worth of bonds for $136,500 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at...
On December 31, 2018, Squidward Corporation issued $500,000, 8%, 20-year bonds for $414,210 cash when the market rate of interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Squidward uses the effective interest method of amortization to amortize and premium or discount. What is the face value of the bond? exact number, no tolerance On December 31, 2018, Squidward Corporation issued $500,000, 8%, 20-year bonds for $414,210 cash when the market rate of interest was...
On December 31, 2018, Squidward Corporation issued $500,000, 8%, 20-year bonds for $414,210 cash when the market rate of Interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Squidward uses the effective interest method of amortization to amortize and premium or discount. Was this bond issued at a premium or discount? Type in a 1 for discount and a 2 for premium. exact number, no tolerance On December 31, 2018, Squidward Corporation issued $500,000, 8%,...
On December 31, 2018, Squidward Corporation issued $500,000, 8 % , 20-year bonds for $414,210 cash when the market rate of interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Squidward uses the effective interest method of amortization to amortize and premium or discount. Give the general journal entries required on (1) December 31, 2018 to record the issue of the bonds and (2) June 30, 2018, the first interest payment date. Make your entries...
1
2
Environmental Concerns Limited (ECL) issued $500,000 of 10 year, 6.5% bonds payable at par value on May 1, 2018. The bonds pay interest each April 30 and October 31, and the company ends its accounting year on December 31. Requirements: 1. Fill in the blanks: a. ECL's bonds are priced at b. When ECL's issued its bonds, the market interest rate was 2. Journalize for ECL: a. Issuance of the bonds on May 1, 2018. b. Payment of...
b.How much is the amortization? c. How much is interest expense? LO5 Straight-Line Method E 10. Nina Corporation issued $8,000,000 in 6 percent, five-year bonds on March 1, 2010, at 92. The semiannual interest payment dates are September 1 and March 1. Prepare entries in journal form for the issue of the bonds by Nina on March 1, 2010, and the first two interest payments on September 1, 2010 and March 1, 201l. Use the straight-line method and ignore year-end...
Most questions answered within 3 hours.
-
The phylum Protista has often been referred to as a junk drawer
of classification. Explain what...
asked 2 minutes ago -
The average amount of money spent for lunch per person in the
college cafeteria is $7.09...
asked 4 minutes ago -
You follow the lab procedure and at the end of Part 4C, you used
an average...
asked 23 minutes ago -
Write 250-450 words, about the following: • Analyze how a
servant leader in your organization or...
asked 27 minutes ago -
3. American and Japanese workers can each produce 4 cars a
year. An American worker can...
asked 30 minutes ago -
On October 1, 20X1, a company purchased a piece of land by
agreeing to pay the...
asked 42 minutes ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 47 minutes ago -
What are the roles of 3' and 5' untranslated regions in
mRNAs?
asked 48 minutes ago -
A domestic television receives antenna delivers a sky noise
power of -105 dBm to a matched...
asked 47 minutes ago -
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 1 hour ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 1 hour ago -
The average area of land burned by forest fires every year in
Canada is 2.5 million...
asked 1 hour ago