On December 31, Caper, Inc., issued $500,000 of 8%, 9-year bonds for $440,000, yielding an effective interest rate of 10%. Semiannual interest is payable on June 30 and December 31 each year. The firm uses the effective interest method to amortize the discount. Required a. Prepare an amortization schedule showing the necessary information for the first two interest periods. Round amounts to the nearest dollar. D. Prepare the journal entry for the bond issuance on December 31. Prepare the journal entry to record the bond interest payment and discount amortization at June 30 of the following year. d. Prepare the journal entry to record the bond interest payment and discount amortization at December 31 of the following year. 3. Interest Interest Year Period Paid at issue 1 Date b. Dec.31 Cash C. Jun.30 d 1 2 $ 0 $ 0 0 Interest Expense Balance Periodic of Unamortized Amortization Discount To record issuance of bonds. 0 $ 0 0 General Journal Description 0 $ 0 0 + ◆ + + Cash To record semiannual interest paymentand discount amortization. Book Value of Bonds End of Period 0 $ 0 0 Debit 0 0 0 0 0 0 0 0 0 Credit 0 0 0 0 0 0

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.   Exercise 10-7 Part 2 2. Prepare journal entries to record the first two interest payments. (Round your answers to the nearest dollar amount.)

On January 1, 2021, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.Assuming the market interest rate on the issue date is 9%, the bonds will issue at $367,422.   Exercise 9-8A Part 1     1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.)

2-Record the interest payment and amortization on June 30. 3-Record the interest payment and amortization on December 31.

Alvarez Corporation issued $130,000 par value, 8%, 4-year bonds (i.e., there were 130 of $1,000 par value bonds in the issue). 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. Determine the issue price of the bonds if the market rate of interest is 6%. 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 Determine the issue price of the bonds. (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 answers to the nearest whole dollar.) The issue price of the bonds =

On the first day of the fiscal year, a company issues a $674,000, 7%, 10-year bond that pays semiannual interest of $23,590 ($674,000 x 7% x 1/2), receiving cash of $707,700. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank.

Andrews Inc. issues a $497,000, 10% 3-year mortgage note on January 1. The note will be paid in three annual installments of $200,000, each payable at the end of the year. What is the amount of interest expense that should be recognized by Andrews Inc. in the second year?

On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays semiannual interest of $33,495 ($957,000 x 7% x 1/2), receiving cash of $1,004,900. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank

On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays semiannual interest of $58,200 ($970,000 x 12% x 1/2), receiving cash of $1,018,500. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank.     - Select - - Select -     - Select - - Select -     - Select - - Select -

On January 1, 20X1, MWB, Inc. borrowed cash by issuing a $600,000, 6-year note that specified 6% interest to be paid on December 31 of each year and the $600,000 to be paid at maturity.  If the note had instead been an installment note to be paid in six equal payments at the end of each year beginning December 31, 20X1, which of the following would be true? Select one: a. The first year's interest expense would have been higher b. The annual cash payment would have been less c. The second year's interest expense would have been less than in year three d. The second year's interest expense would have been less than in year one e. The effective interest rate would have been higher.