On January 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest annually every December 31. The total issue price of the bonds is $173,160. The company uses the effective-interest amortization method. Prepare all journal entries under this bond arrangement for the first year. In the journal entries, put bond discounts in separate accounts.

The Merchant Company issued 10-year bonds on January 1. The 9% bonds have a face value of $93,000 and pay interest every January 1 and July 1. The bonds were sold for $112,168 based on the market interest rate of 7%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dollar) of $3,926 $5,048 $3,255 $4,185

On January 1 of this year, Kona Corporation sold bonds with a face value of $1,520,000 and a coupon rate of 10 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Kona uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 8 percent.   Required: 1.&2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. 3. What bonds payable amount will Kona report on its June 30 balance sheet? \

On January 1, Crane Company issued $5400000, 9% bonds for $5095000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Crane uses the effective-interest method of amortizing bond discount. At the end of the first year, Crane should report unamortized bond discount of $270500. $251000. $254050. $281500.

On January 1, Applied Technologies Corporation (ATC) issued $590,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 11 percent. When the bonds were issued, the market interest rate was 11 percent. The bonds pay interest once per year on December 31. Required: 1. Determine the price at which the bonds were issued and the amount that ATC received at issuance. 2. & 3. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31 assuming no interest has been accrued earlier in the year.

On January 1, Innovative Solutions, Inc., issued $200,000 in bonds at face value. The bonds havea stated interest rate of 6 percent. The bonds mature in 10 years and pay interest once per year onDecember 31.Required:1. Prepare the journal entry to record the bond issuance.2. Prepare the journal entry to record the first interest payment on December 31. Assume nointerest has been accrued earlier in the year.3. Assume the bonds were retired immediately after the first interest payment at a quoted priceof 101. Prepare the journal entry to record the early retirement of the bonds.

On January 1 of the current year, the Queen Corporation issued 12% bonds with a face value of $83,000. The bonds are sold for $80,510. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, five years from now. Queen records straight-line amortization of the bond discount. Determine the bond interest expense for the year ended December 31. Select the correct answer. a-$830 b-$10,458 c-$2,490 d-$9,960

NoleCo issues bonds on January 1, 20X2. The bonds mature ten years from this date and pay interest semi-annually on June 30 and December 31 each year. The face value of the bonds is $500,000 and the coupon/stated rate is 8%. The market rate on the issue date is 7%. The bonds were issued for $535,531. Required: Complete the three parts below. Part A: The interest expense that NoleCo should recognize on June 30, 20X2 is: $20,000 $17,500 $18,744 $18,826 $21,421   Part B: The interest expense that NoleCo should recognize on December 31, 20X2 is: $18,686 $20,000 $18,788 $18,700 $17,500   Part C: The carrying value of these bonds on December 31, 20X2 (after the interest payment on that date) is: $533,248 $502,556 $500,000 $538,087 $532,975

On April 30, Year 6, Tuesday Ltd. issued $1,000,000 of 20-year bonds paying interest twice a year on October 31 and April 30. The coupon rate is 5%, and the market rate was 7%. The bonds were issued at 78.6449. Required a. Calculate the issue price. Round your numbers to the nearest dollar. b. Prepare a bond amortization table for the initial issue of the bonds and the first four interest periods. c. Using the net method, prepare journal entries for the issue of the bonds and the following: • Interest payment on October 31, Year 6⚫ Interest accrual, rounded to 2 months, on December 31, Year 6 ⚫ Interest payment on April 30, Year 7⚫ Interest payment on October 31, Year 7 • Interest accrual on December 31, Year 7

On Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,080 for $132,600. The bonds had a stated rate of 8% and paid interest semi-annually. What is the journal entry to record the issuance of the bonds? If an amount box does not require an entry, leave it blank. Jan. 1