Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Using the effective-interest amortization method On December 31, 2018, when the market interest rate is 8%, Biggs Realty issues $450,000 of 5.25%, 10-year bonds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $365,732. Requirements Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments.

Required information [The following information applies to the questions displayed below.] Super Splash issues $950,000, 9% bonds on January 1, 2024, that mature in 10 years. The market interest rate for bonds of similar risk and maturity is 8%, and the bonds issue for $1,014,554. Interest is paid semiannually on June 30 and December 31. Required: 1. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Date 1/1/2024 6/30/2024 12/31/2024 Cash Paid Interest Expense Change in Carrying Value Carrying Value

Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Retiring bonds payable before maturity CoastalView Magazine issued $600,000 of 15-year, 5% callable bonds payable on July 31, 2018, at 94. On July 31, 2021, CoastalView called the bonds at 101. Assume annual interest payments. Requirements Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2021. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2021. No explanation is required.

Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid InterestExpense Increase inCarrying Value CarryingValue 01/01/2021       331,652 06/30/2021 10,500 13,266 2,766 334,418 12/31/2021 10,500 13,377 2,877 337,295 06/30/2022 10,500 13,492 2,992 340,287 12/31/2022 10,500 13,611 3,111 343,398 06/30/2023 10,500 13,736 3,236 346,634 12/31/2023 10,500 13,866 3,366 350,000   What is the annual market interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.)   Multiple Choice   6%.   3%.   7%.   8%.

On 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, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of interest was 7% and interest is paid annually on December 31. Required: Prepare the amortization table for Ironman Steel's bonds. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0"

Crane Company issued $310,000,6%,10-year bonds on January 1, 2022, for $333,936. This price resulted in an effective-interest rate of 5% on the bonds. Interest is payable annually on January 1. Crane uses the effective-interest method to amortize bond premium or discount. Prepare the journal entry to record accrual of interest and the premium amortization on December 31, 2022.

Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is 6% on the issue date. Required: 1. Calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the total bond interest expense over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense $ 0 0

On June 1, 2019, Bramble Company sold $3,120,000 in long-term bonds for $2,736,600. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31.

On July 1, 2018, Volunteer Inc. issued bonds with a $500,000 face value at 108.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 8%. Interest is payable annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions.