Devin Company computes the following bond interest amortization table for bonds issued onJanuary 1, 2021. Use the information on this table to answer the questions below.InterestCashPaymentPaymentInterestDecrease inВookDateAmountExpenseDiscountDiscountValueJune 30, 2021$360,000$360,000$360,000$360,000$360,000$360,000$360,000$360,000$441,068$444,310$447,683$81,068$84,310$87,683$91,190$94,838$98,631$892,240$807,929$720,247$629,056$534,219$435,587$11,107,760$11,192,071$11,279,753$11,370,944$11,465,781$11,564,413$11,666,989$11,773,669$11,884,615$12,000,000Dec 31, 2021June 30, 2022$451,190$454,838$458,631Dec 31, 2022June 30, 2023Dec 31, 2023$462,577$466,680$102,577$106,680$333,011$226,331June 30, 2024Dec 31, 2024$360,000$360,000$470,947$475,385$110,947$115,385June 30, 2025$115,385Dec 31, 2025$01. What journal entry will Devin make on June 30, 2022 to record the third interest payment?2. When the bonds mature on December 31, 2025 how muchprincipal will the company pay to investors?3. Do the bonds pay interest annually or semiannually?4. What is the bonds' ANNUAL market rate of interest?%5. How much total CASH will the company pay for interest in 2024?6. How much total INTEREST EXPENSE will the company report on itsIncome Statement in 2024?%24

A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below. Interest Cash Payment Payment Interest Decrease in Book Date Amount Expense Discount Discount Value June 30, 2021 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $441,068 $444,310 $447,683 $451,190 $454,838 $458,631 $462,577 $81,068 $84,310 $87,683 $91,190 $94,838 $98,631 $102,577 $892,240 $807,929 $720,247 $629,056 $534,219 $435,587 $333,011 $226,331 $115,385 $11,107,760 $11,192,071 Dec 31, 2021 June 30, 2022 $11,279,753 $11,370,944 $11,465,781 $11,564,413 $11,666,989 $11,773,669 $11,884,615 $12,000,000 Dec 31, 2022 June 30, 2023 Dec 31, 2023 $360,000 $360,000 $360,000 $360,000 June 30, 2024 $466,680 $470,947 $106,680 $110,947 $115,385 Dec 31, 2024 June 30, 2025 Dec 31, 2025 $475,385 $0 1. What journal entry will Devin make on June 30, 2022 to record the third interest payment? 2. When the bonds mature on December 31, 2025 how much principal will the company pay to investors? 3. Do the bonds pay interest annually or semiannually?

Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below. Interest Cash Payment Payment Interest Decrease in Book Date Amount Expense Discount Discount Value June 30, 2021 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $441,068 $444,310 $447,683 $451,190 $454,838 $458,631 $462,577 $81,068 $84,310 $87,683 $91,190 $94,838 $98,631 $102,577 $892,240 $807,929 $720,247 $629,056 $534,219 $435,587 $333,011 $226,331 $115,385 $11,107,760 $11,192,071 Dec 31, 2021 June 30, 2022 $11,279,753 $11,370,944 $11,465,781 $11,564,413 $11,666,989 $11,773,669 $11,884,615 $12,000,000 Dec 31, 2022 June 30, 2023 Dec 31, 2023 $360,000 $360,000 $360,000 $360,000 June 30, 2024 $466,680 $470,947 $106,680 $110,947 $115,385 Dec 31, 2024 June 30, 2025 Dec 31, 2025 $475,385 $0 1. What journal entry will Devin make on June 30, 2022 to record the third interest payment? 2. When the bonds mature on December 31, 2025 how much principal will the company pay to investors? 3. Do the bonds pay interest annually or semiannually?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 95PSB

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