Company issues $1,000,000 face bonds, 5% coupon rate, 10 years term. Issues on March 1, 2013, interest pay on Sep 1, and Mar 1. Market rate is 4% and 6%. Compute the proceed and the amortization table for each period.
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Company issues $1,000,000 face bonds, 5% coupon rate, 10 years term. Issues on March 1, 2013, interest pay on Sep 1, and Mar 1. Market rate is 4% and 6%. Compute the proceed and the amortization table for each period.
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- Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments.On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000On January 1, Year 1, a company issues $570,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $531,269. Exercise 9-11B Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Interest Increase in Date Cash Paid Carrying Value Expense Carrying Value 01/01/Year 1 06/30/Year 1 12/31/Year 1
- Starlight Drive-Ins Ltd. borrowed money by issuing$5,000,000 of 7% bonds payable at 95.5 on July 1, 2018. The bonds are 10-year bonds and payinterest each January 1 and July 1. How much interest expense will Starlight report each six months? Use the straight-lineamortization method. Journalize the entries for the accrual of interest and amortization ofdiscount on December 31, 2018, and the payment of interest on January 1, 2019.On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated interest rate of 8% and a yield of 10%. Maturity of the bonds is 10 I. years and payment of interest is annually, on May 31 of each year. Required: a. Construct a bond amortization table for the first four years. b. Prepare the adjusting entry to be recorded on December 31, 2020. muisOn 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…
- I. On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated interest rate of 8% and a yield of 10%. Maturity of the bonds is 10 www m years and payment of interest is annually, on May 31 of each year. Required: a. Construct a bond amortization table for the first four years. b. Prepare the adjusting entry to be recorded on December 31, 2020.On January 1, 2016, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective-interest method of amortization is used. Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2016? Select one: A. $20,658. B. $24,000. O C. $24,789. O D. $20,000.Ellis company issues a 6.5%, five year bonds dated January 1, 2019, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issues at a price of $255,333. The annual market rate is 6% on the issue date. (these are annual dates) i. Determine the proceeds using the PV function in excel. (please show work/ formulas) ii. Create and report the 10-period amortization table(show work/formulas) iii. Make the journal entry for the proceeds, plus the first two interest payments. Report the effects of all entries..
- 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.A company issues 15,000,000, 7.8% 20 year bond to yield 9% on Jan.1,20. Interest is paid on June 30 and December 31. The processes from the bonds are 14,233,448. Using the effective-interest method amortization, 1. Do a amortization chart for the first 2 yearsClan Company issued 3 year 12% bonds with face amount of P2,000,000. Interest is payable semiannually April 1 and October 1. The bonds were issued on April 1, 2020 for P2,101,520 which represents an effective interest cost of 10% per year. Required: Prepare an amortization table using the effective interest method. Prepare journal entries for 2020 and 2021.
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