Landis Co. purchased $500,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2011, with...
Sheridan Company purchased $2650000 of 7%, 5-year bonds from Ritter, Inc. on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for $2774740 at an effective interest rate of 6%. Using the effective-interest method, Sheridan Company decreased the Available-for-Sale Debt Securities account for the Ritter, Inc. bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of $9920 and $10280, respectively. At December 31, 2018, the fair value of the Ritter,...
Cullumber Company purchased $2450000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for $2585740 at an effective interest rate of 7%. Using the effective-interest method, Cullumber Company decreased the Available-for-Sale Debt Securities account for the Ritter, Inc. bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of $9520 and $9880, respectively. At April 1, 2019, Cullumber Company sold the Ritter bonds...
Ivanhoe Company purchased $1100000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for $1150896 at an effective interest rate of 7%. Using the effective interest method, Ivanhoe Company decreased the Available-for-Sale Debt Securities account for the Carlin, Inc. bonds on July 1, 2018 and December 31, 2018 by the amortized premiums of $3248 and $3392, respectively. At February 1, 2019, Ivanhoe Company sold the Carlin...
On January 1, 2020, Addison Company purchased $3,00,000 of 5-year bonds with a stated rate of interest of 8% from Charter, Inc. Interest is payable every July 1 and January 1. The market rate for the bonds was 7% which means the bonds sold for $3,124,740. Addison Company uses the effective-interest method and classified the debt investment as Available for Sale. At December 31, 2020, the fair value of the bonds was $3,180,000. What should Addison report as other comprehensive...
On February 1, 2011, Woft Inc. issued 10% convertible bonds dated February 1, 2011, with a face amount of $200,000. The bonds sold for $239,588 and mature in 20 years. Each $1,000 bond is convertible into 60 shares of Wolf's $1 par value common stock. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization. 1....
Kieso, Intermediate Accounting, 16e Intermediate Accounting, 16e (ACC 334-335-444 Assignment Gradebook ORION Downloadable eTextbook CALCULATOR ALL SCREEN PRINTER VERSION BACK NEXT Question 10 Blossom Company purchased $1300000 of 8%, 5-year bonds from Carlin, Inc. on January 1, 2018, with interest payable on July 1 and January 1. The bonds sold for $1349896 at an effective interest rate of 7%. Using the effective interest method, Blossom Company decreased the Available for Sale Debt Securities account for the Carlin, Inc. bonds on...
On January 1, 2011, Bishop Company issued 10% bonds dated January 1, 2011, with a face amount of $20 million. The bonds mature in 2020 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2011. 2. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2011. 3. Prepare the...
On January 1, 2011, Gray Company issued $500,000 of 5-year, 3% bonds for $470,000, their interest payable semiannually every June 30 and December 31. Gray uses straight-line amortization, having judged the difference under the effective-interest method to be immaterial. Scenario #1 On April 30, 2015, Gray retired all of the bonds at 101. Prepare the bond-related journal entry(s) Gray should have made on April 30, 2015. Scenario #2 On April 30th 2015, Gray retired $100,000 of the bonds at 98....
6. Patton Company purchased S600,000 of 10% bonds of Scott Co. on Jan urchased S600,000 of 10% bonds of Scott Co. on January 1, 2018, paying S564,150. The bonds mature January 1, 2028: interest is payable each July 1 an discount of $35.850 provides an effective yield of 11%. Patton Company uses th method and plans to hold these bonds to maturity. effective yield of 11%. Patton Company uses the effective interest On July 1, 2018, Patton Company should increase...
Appling Enterprises issued 10% bonds with a face amount of $530,000 on January 1, 2021. The bonds sold for $487,478 and mature in 2040 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter...