Amortize Premium by Interest Method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,433,150. Interest is payable semlannually. Shunda's fiscal year begins on January 1. The company uses the Interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an armount box does not require an entry, leave it blank. 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. b. Determine the bond interest expense for the first year. Round to the nearest dollar. Annual interest paid Less premium amortized Previous

Amortize Premium by Interest Method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,433,150. Interest is payable semlannually. Shunda's fiscal year begins on January 1. The company uses the Interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an armount box does not require an entry, leave it blank. 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. b. Determine the bond interest expense for the first year. Round to the nearest dollar. Annual interest paid Less premium amortized Previous

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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me * CengageNowv2 | Online teach x keAssignment/takeAssignmentMain.do?invoker-D&takeAssignmentSessionLocator=&inprogress%-false Updar Discount Amortization On the first day of the fiscal year, a company issues a $1,700,000, 9%, 10-year bond that pays semiannual interest of $76,500 ($1,700,000 x 9% x ½), receiving cash of $1,407,515. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense 1,407,515 Discount on Bonds Payable Cash
2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator=&inprogress3false eBook Show Me How Calculator Print Item Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $18,200,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $16,828,145. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Round your…
now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false < 3. eBook If an amount box does not require an entry, leave it blank. 1. 2. Show Me How On the first day of its fiscal year, Chin Company issued $26,800,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $24,873,499. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Check My Work A 000 000 000 000 000 000 b. Determine the amount of the bond interest expense for the first…
ASsignmentiMain.do?invoker=& takeAssignmentSessionLocator%3D&inprogress%-false rk eBook Calculator Print Item Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $90,000,000 of five-year, 12% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar. b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. C. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. d. The amount of the bond interest expense for the first year. Round to the nearest dollar. SHEET.A... SHEET KSHEET.A...…
ome * CengageNOWv2 | Online teach x G On the first day of the fiscal ye x akeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator=&inprogress-false Update Entries for Issulng Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $270,000 of 20-year, 7% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months. Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank. May 1 Nov. 1 Dec. 31 Previous Next
MSI Inc -(ALL ENTRIES FOR MSI ONLY) KEY for Accounting Component Assets = A Liabilities = L Stockholders' Equity = SE Accounting Component On July 1st 2019, MSI Inc issued $800,000, 3%, 10 year bonds at 103. The bonds pay interest annually. Prepare the Debit (DR) Credit (CR) Account 3 journal entry to record the issuance of the bonds. What is the total cost of borrowing? TOTAL COST OF BORROWING = On January 1st 2020, MSI Inc issues $500,000 4%, 6 year bonds at face value. Prepare the entry to record the issuance of the bonds. On December 31st 2020, MSI Inc does an adjusting entry to record the accrual of interest for #4 above. On January 1st, 2020, MSI pays the accrued bond interest and calls the bonds at 101 (refer to #4 above). Record the payment of interest and redemption of the bonds.
Music Test >> gageNOW X . d21 mnsu - Bin X File Home Inser https://v2.cen.. Paste Font The Kaplan Group sold $200,000 of 10-year bonds for $190,000. lipboard The face rate on the bonds was Navigation 8% and interest is paid annually on December 31. What entry rock op would be made on December 31 when the interest is paid? 1 result (Numbers are omitted.) Headings Pages Oa. Interest Expense Bonds Payable Cash First of Rock Operas Ob. Interest Expense important double alb Cash Oc. Interest Expense Discount on Bonds Payable Cash Od. Interest Expense Discount on Bonds Payable Cash (田

On the first day of the fiscal year, a company issues a $2,400, 000, 6%, 6-year bond that pays semiannual interest of $72,000, receiving cash of 2, 523,092. Use straight line amortization, journalize thebfirst interest oayment snd the amortization of the related bind premium. Riund to the nearest dollar. If an amohnt box does not require an entry, leave it blank.
Refer to Question 7. How much interest revenue would Tasty Foods record at the time it receives the first semiannual payment on June 30? (LO D-5) a. $4,341. b. $8,000. c. $6,512. d. $3,256. REF PRB: On January 1, Eco-Safe Packaging issues $100,000 of 8%, 5-year bonds with interest payable semiannually on June 30 and December 31. The market interest rate for bonds of similar risk and maturity is 6%. Tasty Foods purchases all of the bonds for $108,530. Which of the following would correctly record Tasty Foods' investment in bonds on January 1? a. Cash 108,530 Investments 108,530 b. Investments 108,530 Cash 108,530 c. Cash 100,000 Investments 100,000 d. Investments Cash 100,000 100,000
ngageNOWv2 | Online teach X Institution Page ✓ Discount on Bonds Payable takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false Cash Active Learning Monopoly - Yo Feedback Discount Amortization On the first day of the fiscal year, a company issues a $4,200,000, 10% , five-year bond that pays semiannual interest of $210,000 ($4,200,000 x 10 % *%), receiving cash of $4,041,710. Journalize the first interest payment and the amortization of the related bond discount. If an amount box does not require an entry, leave it blank. Interest Expense Check My Work X ✓ MindTap-Cengage Learning M X Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. ASUS + ES Previous 2 Next Oct 8 ☐ 7:56 A
m/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false eBook Premium Amortization Show Me How Cen New Û ✰ O Check My Work + of $1,267,404. On the first day of the fiscal year, a company issues a $1,200,000, 10%, 8-year bond that pays semiannual interest of $60,000 ($1,200,000 x 10% x 2), receiving cash Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Previous Update Next
I need help on part B. Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $4,100,000 of 8-year, 11% bonds at a market (effective) interest rate of 8%, receiving cash of $4,816,617. Interest is payable semiannually on April 1 and October 1 B. Journalize the entry to record the first interest payment on October 1, 20Y1, and ammortization of bond premium for six months, using the straight-line method. Round to the nearest dollar