A ten-year $8,000,000 bond is issued on January 1, 20xx with a 6% stated interest rated. Interest is paid semiannually on June 30 and December 31st. What is the amount that would be recorded as interest expense on June 30, 20xx (the first interest payment), assuming that no interest expense has been recorded since the bond was issued on January 1st? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123

A ten-year $8,000,000 bond is issued on January 1, 20xx with a 6% stated interest rated. Interest is paid semiannually on June 30 and December 31st. What is the amount that would be recorded as interest expense on June 30, 20xx (the first interest payment), assuming that no interest expense has been recorded since the bond was issued on January 1st? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the issuance of the bond is: Debit Cash $312,177; credit Discount on Bonds Payable $12,177; credit Bonds Payable $300,000. Debit Cash $300,000; debit Premium on Bonds Payable $12,177; credit Bonds Payable $312,177. Debit Bonds Payable $300,000; debit Interest Expense $12,177; credit Cash $312,177. Debit Cash $312,177; credit Premium on Bonds Payable $12,177; credit Bonds Payable $300,000. Debit Cash $312,177; credit Bonds Payable $312,177.
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Question 2: Part i: The following balances are taken from the books of George Anderson at the end of his first year trading on 31 December 2014. Debit Credit %24 Sales 40000 Purchases 18500 Wages and salaries 5100 Repairs and maintenance 1300 Heating and lighting 900 General expenses 1200 Insurance 800 Cash at bank 2200 Cash in hand 1300 Trade receivables 4100 Trade payables 3400 Premises 30000 Fixtures and fttings 10000 Motor vehicle 8000 Capital at 1 January 2014 52000 Drawings 12000 95400 95400 The following additional information is available: Inventory at 31 December 2014 was valued at $4500. Required: (a) Prepare income statement for the year ended 31 December 2014. (b) Prepare a balance sheet as at 31 December 2014. Part ii: The income statement is a mandatory statement that must be prepared and disclosed for the investors, owners, government and tax authorities. The objective of preparing the income statement is to calculate the net profit or loss. Consider the following income…
please fill the pictures out Quatro Company Issues bonds dated January 1, 2021, with a par value of $790.000. The bonds' annual contract rate Is 9%, and Interest Is pald semiannually on June 30 and December 31. The bonds mature In three years. The annual market rate at the date of Issuance Is 8%, and the bonds are sold for $810.694. 2 How much total bond Interest expense will be recognized over the Iife of these bonds? 3. Prepare a straight-line amortization table for these bonds.