Homework Answers
Journal entry
| Event | General Journal | Debit | Credit |
| 1 | Interest expense | 239417 | |
| Discount on bonds payable (65000/12) | 5417 | ||
| Cash (2600000*18%*6/12) | 234000 | ||
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On January 1, 2019, Drennen Inc. issued $2.6 million face amount of 6-year, 18% stated rate...
On January 1, 2019, Drennen Inc. issued $4.6 million face amount of 6-year, 14% stated rate...
On January 1, 2019, Drennen Inc. issued $4.6 million face amount of 6-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2024. b-2. Assume instead that the proceeds were $4,820,000. Record the journal entry to show the payment of semiannual interest and the related discount amortization on June 30, 2019, assuming that the discount of $180,000 is amortized on a straight-line basis.
On January 1, 2016, Drennen, Inc., issued $4.6 million face amount of 11-year, 10% stated rate...
On January 1, 2016, Drennen, Inc., issued $4.6 million face amount of 11-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2026. Table 6-4, Table 6-5 a. Calculate the proceeds (issue price) of Drennen, Inc.'s, bonds on January 1, 2016, assuming that the bonds were sold to provide a market rate of return to the investor. (Round PV factor to 4 decimal...
Required information (The following information applies to the questions displayed below. On January 1, 2019, Drennen...
Required information (The following information applies to the questions displayed below. On January 1, 2019, Drennen Inc. issued $2.6 million face amount of 7-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2025. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) b-2. Assume instead that the proceeds were $2,534,000. Record the journal entry to show the payment of semiannual...
Struggling with this problem, can someone help? On January 1, 2019, Drennen Inc. issue $4.1 million...
Struggling with this problem, can someone help? On January 1, 2019, Drennen Inc. issue $4.1 million face amount of 9 yr, 18% stated rate bonds when market interest rates were 16%. The bonds pay semiannual interest each June 30th and December 31st and mature on December 31, 2027. (Table 6-4, 6-5) a. Calculate the proceeds (issue price) of Drennen Inc.'s bonds on January 1, 2019, assuming that the bonds were sold to provide a market rate of return to the...
On January 1, 2017, Learned Inc, issued $16 million face amount of 20-year, 18% stated rate...
On January 1, 2017, Learned Inc, issued $16 million face amount of 20-year, 18% stated rate bonds when market interest rates were 20%. The bonds pay interest semiannually each June 30 and December 31 and mature on December 31, 2036. Calculate the proceeds (issue price) of Learned Inc.’s, bonds on January 1, 2017, if the bonds were sold to provide a market rate of return to the investor. Assume instead that the proceeds were $16,411,000. Record the journal entry to...
Duval Co. issues four-year bonds with a $118,000 par value on January 1, 2019. at a...
Duval Co. issues four-year bonds with a $118,000 par value on January 1, 2019. at a price of $113,864. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. Exercise 10-7 Part 1 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Semiannual Period End Unmortired D iscount Carrying Value 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022 2. Prepare journal entries to record...
Duval Co. issues four-year bonds with a $107,000 par value on January 1, 2019, at a...
Duval Co. issues four-year bonds with a $107,000 par value on January 1, 2019, at a price of $102,920. The annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. Exercise 10-7 Part 1 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Unamortized Discount Carrying Value Semiannual Period-End 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022 2. Prepare journal entries to record the first...
When Patey Pontoons issued 4% bonds on January 1, 2021, with a face amount of $820,000,...
When Patey Pontoons issued 4% bonds on January 1, 2021, with a face amount of $820,000, the market yield for bonds of similar risk and maturity was 5%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds...
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $600,000 on...
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $600,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10% Interest is paid semiannually on June 30 and December 31 (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the...
When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $560,000,...
When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $560,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds...
Required information (The following information applies to the questions displayed below. On January 1, 2019, Drennen Inc. issued $2.6 million face amount of 7-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2025. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) b-2. Assume instead that the proceeds were $2,534,000. Record the journal entry to show the payment of semiannual...
Duval Co. issues four-year bonds with a $118,000 par value on January 1, 2019. at a price of $113,864. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. Exercise 10-7 Part 1 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Semiannual Period End Unmortired D iscount Carrying Value 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022 2. Prepare journal entries to record...
Duval Co. issues four-year bonds with a $107,000 par value on January 1, 2019, at a price of $102,920. The annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. Exercise 10-7 Part 1 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Unamortized Discount Carrying Value Semiannual Period-End 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022 2. Prepare journal entries to record the first...
When Patey Pontoons issued 4% bonds on January 1, 2021, with a face amount of $820,000, the market yield for bonds of similar risk and maturity was 5%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds...
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $600,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10% Interest is paid semiannually on June 30 and December 31 (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the...
When Patey Pontoons issued 10% bonds on January 1, 2021, with a face amount of $560,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2024 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds...
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