Presented here are long term liabity tema for Marin ne. at December 31, 2017. S70,000 Bonds payable (due 2021) Notes payable (du 2010) 79,000 Discourt on bonds payable 30,000 Prepare the long term labikies section of the balance sheet for Marin in. MARIN INC. Rane Shet (Prtt
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- Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premiumSaverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000 of 10-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of 66,747,178. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Instructions 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 2016, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.) b. The interest payment on June 30, 2017, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.) 3. Determine the total interest expense for 2016.Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
- Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.Presented here are long-term liability itema for Marin Inc. at December 31, 2017. Bonds payable (due 2021) $870,000 Notes payable (due 2019) 79,000 Discount on bonds payable 30,000 Prepare the long term labikties section of the balance sheet for Marin inc. MARIN INC. Ralance Sheet (Parta)With the stated information provided by Clover Inc as at Dec 31, 2021, prepare long-term liabilities section of its balance sheet in proper format: Bonds Payable which was due on 2025 =$900,000 Notes payable which was due on 2023=$85,000 Discount on Bonds payable=$30,000
- The following section is taken from Ohlman Ltd.'s. statement of financial position at December 31, 2018. Non‐current liabilities Bonds payable, 7%, due January 1, 2024 $16,000,000 Current liabilities Interest payable 1,120,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. Prepare the entry to record the accrual of interest on December 31, 2019.Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below. Interest Cash Payment Payment Interest Decrease in Вook Date Amount Discount Value Expense $441,068 $444,310 $447,683 $451,190 $454,838 $458,631 $462,577 $466,680 $470,947 $475,385 Discount $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $81,068 $84,310 $87,683 $91,190 $94,838 $98,631 $102,577 $106,680 $110,947 $115,385 $892,240 $807,929 $720,247 $629,056 $534,219 $435,587 $333,011 $226,331 $115,385 $0 $11,107,760 $11,192,071 $11,279,753 $11,370,944 $11,465,781 $11,564,413 $11,666,989 $11,773,669 $11,884,615 $12,000,000 June 30, 2021 Dec 31, 2021 June 30, 2022 Dec 31, 2022 June 30, 2023 Dec 31, 2023 June 30, 2024 Dec 31, 2024 June 30, 2025 Dec 31, 2025Cole Inc. prepares the following effective interest amortization table for its bonds payable. Interest Payment Date Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 Dec 31, 2026 Dec 31, 2027 Dec 31, 2028 Dec 31, 2029 Dec 31, 2030 Cash Payment Amount 7% 8% 6% 5% $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 $840,000 Interest Expense Decrease in Discount Discount $911,169 $71,169 $916,151 $76,151 $921,481 $81,481 $927,185 $87,185 $933,288 $93,288 $939,818 $99,818 $106,805 $114,282 $946,805 $954,282 $840,000 $962,281 $122,281 $840,000 $970,841 $130,841 What is the bonds' annual MARKET RATE of interest? $912,133 $835,982 $754,501 $667,316 $574,028 $474,210 $367,404 $253,123 $130,841 $0 Book Value $13,087,867 $13,164,018 $13,245,499 $13,332,684 $13,425,972 $13,525,790 $13,632,596 $13,746,877 $13,869,159 $14,000,000
- Preparing a Debt Disclosure As of December 31, 2020, Dole Company’s long-term debt consisted of the following: $146,050—Unsecured note payable to bank due 2021. $517,500—Unsecured note payable to bank due 2023. $690,000—Unsecured note payable to bank due 2025. $103,500—Secured mortgage payable to bank due in equal installments 2021 through 2025. $184,000—Secured note payable to bank due in 2026. Prepare the required financial statement disclosure at December 31, 2020, indicating the amounts due in each of the next five years and thereafter. NotePayable Year 12021 Year 22022 Year 32023 Year 42024 Year 52025 Thereafter $146,050 Answer Answer Answer Answer Answer Answer 517,500 Answer Answer Answer Answer Answer Answer 690,000 Answer Answer Answer Answer Answer Answer 103,500 Answer Answer Answer Answer Answer Answer 184,000 Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer AnswerThe following section is taken from Oriole Ltd.s balance sheet at December 31, 2019. Non-current liabilities Bonds payable, 7%, due January 1, 2024 HK$ 1,585,000 Current liabilities Interest payable 110,950 Bond interest is payable annually on January 1. The bonds are callable on any interest date. Journalize the payment of the bond interest on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1 eTextbook and Media List of Accounts Debit Credit Assume that on January 1, 2020, after paying interest, Oriole calls bonds having a face value of $503,000. The call price is 103. Record the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1 eTextbook and Media List of Accounts Debit Credit Prepare the entry to record the accrual of interest on December 31, 2020. (Credit…The following section is taken from Oriole Company's balance sheet at december 31, 2021. Current liabilities, Interest payable $87, 750 Long liabilities, Bonds payable, 5% due january 1, 2024 1,755,000. Bond interest ispayable annually on January 1. The bonds are callable on any interest date. Prepare the entry to record the accrual of interest on December 31, 2022
