On January 1, 2021, your company sold $400,000 of 5%, 10 year bonds when the market rate was 6%. These bonds pay interest annually on December 31 each year. Your company uses the interest method of amortization. А. Calculate the selling price of the bonds. Show the time value of money factors you entered into your calculator. Prepare journal entries from January 1, 2021 through December 31, 2022 (TWO full years but no adjusting and reversing entries will be needed since you are making payments on the last day of the year), assuming your company's year ends on December 31. Put the appropriate date beside each journal entry. С. What is the carrying value of these bonds on; 1. December 31, 2021? 2. December 31 2022? B.

On January 1, 2021, your company sold $400,000 of 5%, 10 year bonds when the market rate was 6%. These bonds pay interest annually on December 31 each year. Your company uses the interest method of amortization. А. Calculate the selling price of the bonds. Show the time value of money factors you entered into your calculator. Prepare journal entries from January 1, 2021 through December 31, 2022 (TWO full years but no adjusting and reversing entries will be needed since you are making payments on the last day of the year), assuming your company's year ends on December 31. Put the appropriate date beside each journal entry. С. What is the carrying value of these bonds on; 1. December 31, 2021? 2. December 31 2022? B.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 7C

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