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K On January 1, 2022, the Jackson Capital Partners issued $900,000 par value, 12%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2022. The market rate of interest on the date of the bond issue was 8%. Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Read the requirements Requirement a. Determine the issue price of the debt. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest whole dollar.) The issue price of the debt = Requirement b. Prepare the amortization table for the bond issue through January 1, 2025, assuming that Jackson uses the effective interest rate method of amortization. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.) Date January 1, 2022 Cash Interest July 1, 2022 January 1, 2023 July 1, 2023 Effective Interest Discount/Premium Amortization Carrying Value January 1, 2024 July 1, 2024 January 1, 2025 Requirement c. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds at maturity. Assume that the company uses a premium or discount account, if needed. (Record debits first, then credits. Exclude explanations from any journal entries. Use the rounded values from previous calculations.) Begin by recording the issuance of the bonds payable, Account January 1, 2022

K On January 1, 2022, the Jackson Capital Partners issued $900,000 par value, 12%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2022. The market rate of interest on the date of the bond issue was 8%. Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Read the requirements Requirement a. Determine the issue price of the debt. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest whole dollar.) The issue price of the debt = Requirement b. Prepare the amortization table for the bond issue through January 1, 2025, assuming that Jackson uses the effective interest rate method of amortization. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.) Date January 1, 2022 Cash Interest July 1, 2022 January 1, 2023 July 1, 2023 Effective Interest Discount/Premium Amortization Carrying Value January 1, 2024 July 1, 2024 January 1, 2025 Requirement c. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds at maturity. Assume that the company uses a premium or discount account, if needed. (Record debits first, then credits. Exclude explanations from any journal entries. Use the rounded values from previous calculations.) Begin by recording the issuance of the bonds payable, Account January 1, 2022

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.1AP
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K On January 1, 2022, the Jackson Capital Partners issued $900,000 par value, 12%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2022. The market rate of interest on the date of the bond issue was 8%. Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Read the requirements Requirement a. Determine the issue price of the debt. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest whole dollar.) The issue price of the debt = Requirement b. Prepare the amortization table for the bond issue through January 1, 2025, assuming that Jackson uses the effective interest rate method of amortization. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.) Date January 1, 2022 Cash Interest July 1, 2022 January 1, 2023 July 1, 2023 Effective Interest Discount/Premium Amortization Carrying Value January 1, 2024 July 1, 2024 January 1, 2025 Requirement c. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds at maturity. Assume that the company uses a premium or discount account, if needed. (Record debits first, then credits. Exclude explanations from any journal entries. Use the rounded values from previous calculations.) Begin by recording the issuance of the bonds payable, Account January 1, 2022
Transcribed Image Text:K On January 1, 2022, the Jackson Capital Partners issued $900,000 par value, 12%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2022. The market rate of interest on the date of the bond issue was 8%. Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Read the requirements Requirement a. Determine the issue price of the debt. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest whole dollar.) The issue price of the debt = Requirement b. Prepare the amortization table for the bond issue through January 1, 2025, assuming that Jackson uses the effective interest rate method of amortization. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.) Date January 1, 2022 Cash Interest July 1, 2022 January 1, 2023 July 1, 2023 Effective Interest Discount/Premium Amortization Carrying Value January 1, 2024 July 1, 2024 January 1, 2025 Requirement c. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds at maturity. Assume that the company uses a premium or discount account, if needed. (Record debits first, then credits. Exclude explanations from any journal entries. Use the rounded values from previous calculations.) Begin by recording the issuance of the bonds payable, Account January 1, 2022
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