b. Give the journal entries to record the issuance and the first 2 interest payments under each of 3 different independent cases: Case A - The bonds sold at par. Case B - The bonds sold to yield 12%. Case C - The bonds sold to yield 10% C. Provide the following amounts to be reported on the 2011 financial statements:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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To get cash to purchase operating assets, Ballard Company, with a December 31 fiscal year-end, issued
bonds with the following characteristics:
(i)
(ii)
(iii)
(iv)
C.
Date of bonds: January 1, 2011
Maturity amount and date: $100,000 due in 10 years (December 31, 2020).
Interest: 11% per year payable each December 31.
Date issued: January 1, 2011.
Required:
a. Construct the amortization table for the first 2 years for each bond. See (b).
b. Give the journal entries to record the issuance and the first 2 interest payments under each of 3
different independent cases:
Case A - The bonds sold at par.
Case B - The bonds sold to yield 12%.
Case C - The bonds sold to yield 10%
Provide the following amounts to be reported on the 2011 financial statements:
a., Interest expense
b., Bonds payable
c., Unamortized premium or discount
d., Net Liability
e., Stated rate of interest (coupon rate)
f., Cash paid for interest
Case A
$
Case B
$
Case C
$
Transcribed Image Text:To get cash to purchase operating assets, Ballard Company, with a December 31 fiscal year-end, issued bonds with the following characteristics: (i) (ii) (iii) (iv) C. Date of bonds: January 1, 2011 Maturity amount and date: $100,000 due in 10 years (December 31, 2020). Interest: 11% per year payable each December 31. Date issued: January 1, 2011. Required: a. Construct the amortization table for the first 2 years for each bond. See (b). b. Give the journal entries to record the issuance and the first 2 interest payments under each of 3 different independent cases: Case A - The bonds sold at par. Case B - The bonds sold to yield 12%. Case C - The bonds sold to yield 10% Provide the following amounts to be reported on the 2011 financial statements: a., Interest expense b., Bonds payable c., Unamortized premium or discount d., Net Liability e., Stated rate of interest (coupon rate) f., Cash paid for interest Case A $ Case B $ Case C $
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