Valencia Corporation has the following liabilities at December 31, 2015: 8.9% note payable issued November 1, 2015, maturing October 31, 2016 1,150,000 7.25% note payable issued August 1, 2015, payable in twelve equal annual installments of 90,000 beginning August 1, 2016 1,080,000 Valencia's December 31, 2015 financial statements were issued on March 19, 2016. On January 23, 2016, the entire 1,150,000 balance of the 8.9% note was refinanced by issuance of a long-term obligation payable in a
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- Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267Aggies 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
- The following amortization and interest schedule reflects the issuance of 10-year bonds by Cullumber Corporation on January 1, 2014, and the subsequent interest payments and charges. The company’s year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Year Cash Interest AmountUnamortized CarryingValue 1/1/2014 $28,507 $ 113,493 2014 $15,620 $17,024 27,103 114,897 2015 15,620 17,235 25,488 116,512 2016 15,620 17,477 23,631 118,369 2017 15,620 17,755 21,496 120,504 2018 15,620 18,076 19,040 122,960 2019 15,620 18,444 16,216 125,784 2020 15,620 18,868 12,968 129,032 2021 15,620 19,355 9,233 132,767 2022 15,620 19,915 4,938 137,062 2023 15,620 20,558 142,000 (a) Indicate whether the bonds were issued at a premium or a discount.select an option…The following amortization and interest schedule reflects the issuance of 10-year bonds by Cullumber Corporation on January 1, 2014, and the subsequent interest payments and charges. The company’s year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Year Cash Interest AmountUnamortized CarryingValue 1/1/2014 $28,507 $ 113,493 2014 $15,620 $17,024 27,103 114,897 2015 15,620 17,235 25,488 116,512 2016 15,620 17,477 23,631 118,369 2017 15,620 17,755 21,496 120,504 2018 15,620 18,076 19,040 122,960 2019 15,620 18,444 16,216 125,784 2020 15,620 18,868 12,968 129,032 2021 15,620 19,355 9,233 132,767 2022 15,620 19,915 4,938 137,062 2023 15,620 20,558 142,000 (e) On the basis of the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2014.…ABC Corporation has the following liabilities at December 31, 2020: 8% note payable issued November 1, 2019, maturing October 31, 2021. 1,150,000 7% note payable dated August 1, 2020, payable in 12 equal annual installments of P90,000 beginning August 1, 2021 1,080,000 ABC Company‘s December 31, 2020, financial statements were issued on March 19, 2021. On January 23, 2021, the entire P1,150,000 balance of the 8% note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on December 29, 2020, ABC Company consummated a n on-cancelable agreement with the lender to refinance the 7% of P1,080,000 note on a long-term basis, on readily determinable terms that have not yet been implemented. On the December 31, 2020 statement of financial position, the amount of these notes payable that ABC should classify as short-term obligation is?
- Remo Company reported the following liability balances on December 31, 2022: 12% note payable issued on October 1, 2021, maturing on October 1, 2023 - P2,000,000 10% note payable issued on March 1, 2021, maturing on March 1, 2023 - P4,000,000 The 2022 financial statements were issued on March 31, 2023. Under the loan agreement for the 12% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2022. On March 1, 2023, the entire P4,000,000 balance of the 10% note payable was refinanced through the issuance of a long-term obligation payable lump sum. What amount of the notes payable should be classified as noncurrent on December 31, 2022? A) P2,000,000 B) P6,000,000 P4,000,000 POOn December 31, 2018, when the market interest rate is 10%, Willis Realty issues $1,000,000 of 11.25%, 10-year bonds payable. The bonds pay interest semiannually. Willis Realty received $1,077,988 in cash at issuance. Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) Interest Carrying Cash Paid Expense Amortized Amount 12/31/2018 06/30/2019 12/31/2019 Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. (Record debits first, then credits. Select explanations on the last line of the…On January 1, 2018, Technicians Credit Union, (TCU), issued 8%, 20-year bonds payable with a face value of $900,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 108. How do I Journalize the payment of interest and amortization on December 31, 2018?
- On December 31, 2018, Blue Devil Inc. issued $600,000 of 15-year, ten percent bonds payable for $517,411, yielding an effective interest rate of 12 percent. Interest is payable semiannually on June 30 and December 31. Prepare the following journal entries, and round answers to the nearest dollar. a. The issuance of the bonds on December 31, 2018. b. The semiannual interest payment and discount amortization (straight-line interest method) on June 30, 2019. HTML EditorKeyboard ShortcutsThe following transactions are taken from the records of the Elton Corporation. Prepare journal entries for the transactions for the following: a. Bonds payable with a par value of $800,000, carrying a stated interest rate of 9% payable semiannually on March 1 and September 1, were issued on June 1, 2014, at 102.5 plus accrued interest. The bonds are dated March 1, 2014 and mature on March 1, 2024. b. September 1 interest payment is made. (Bond premium amortization is recorded only at year end.) c. Year-end (December 31) accrued interest on bonds payable is recorded and the bond premium is amortized using the straight-line method. d. March 1 interest payment is made. e. Bonds with a par value of $350,000 are purchased at 101 plus accrued interest on August 1, 2015, and retired. (Bond premium amortization is recorded only at year end.) f. September 1 interest payment is made. g. Year-end (December 31) accrued interest on bonds payable is recorded and the bond premium is amortized using…The following amortization and interest schedule reflects the issuance of 10-year bonds by Capulet Corporation on January 1, 2014, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Year 00 Cash 00 Interest 00 AmountUnamortized 00 CarryingValue 1/1/2014 $5,65100 $94,349 2014 $11,000 $11,322 5,32900 94,671 2015 11,000 11,361 4,96800 95,032 2016 11,000 11,404 4,56400 95,436 2017 11,000 11,452 4,11200 95,888 2018 11,000 11,507 3,60500 96,395 2019 11,000 11,567 3,03800 96,962 2020 11,000 11,635 2,40300 97,597 2021 11,000 11,712 1,69100 98,309 2022 11,000 11,797 89400 99,106 2023 11,000 11,894 00 100,000 Instructions a. Indicate whether the bonds were issued at a premium or a discount and how you can determine this fact from…