Duval Co. issues four-year bonds with a $108,000 par value on January 1, 2019, at a price of $103,920. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.)
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Duval Co. issues four-year bonds with a $108,000 par value on January 1, 2019, at a price of $103,920. The annual contract rate is 6%, and interest is paid semiannually on June 30 and December 31.
Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.)
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- Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium
- Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premiumDixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discountDuval Co. issues four-year bonds with a $100,000 par value on January 1, 2019, at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31. 1. Prepare a straight-line amortization table like Exhibit 14.7 for these bonds. 2. Prepare journal entries to record the first two interest payments. 3. Prepare the journal entry for maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
- Duval Co. issues four-year bonds with a $109,000 par value on January 1, 2019, at a price of $104,910. The annual contract rate is 5%, and interest is paid semiannually on June 30 and December 31. Prepare the journal entry for maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).A company issues 8%, two-year bonds on December 31, 2019, with a par value of $7,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%, which implies a selling price of 103.71 or $7,260. (a) Prepare an amortization table like Exhibit 14.11 for these bonds; use the straightline method to amortize the premium. Then prepare journal entries to record (b) the issuance of bonds on December 31, 2019; (c) the first through fourth interest payments on each June 30 and December 31; and (d) the maturity of the bonds on December 31, 2021.On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the bonds issued at $644,632.Required:1. Using an amortization schedule, show that the bonds have a carrying value of $633,887 on December 31, 2026.2. If the market interest rate increases to 8% on December 31, 2026, it will cost $568,311 to retire the bonds. Record the retirement of the bonds on December 31, 2026.
- A Company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of $109,870. The annual contract rate is 5%, and interest is paid semiannually on June 30 and December 31. Prepare journal entries to record the first two interest payments. (Round your answers to the nearest dollar amount.) Record the interest payment and discount amortization on June 30, 2021. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2021Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual contract rate is 10%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 8%, and the bonds are sold for $757,732. 1. What is the amount of the premium on these bonds at issuance?2. How much total bond interest expense will be recognized over the life of these bonds?3. Prepare a straight-line amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 What is the amount of the premium on these bonds at issuance? Premium Complete this question by entering your answers in the tabs below. Required 2 How much total bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid: payments…On January 1, 2021, White Water issues $440,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year. Required: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $440,000. Record the bond issue on January 1, 2021, and the first two interest payments on December 31, 2021, and December 31, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list es Journal entry worksheet 1 Record the issuance of the bond. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021