owv21 Online teachinXsignment/takeAssignmentMain.do?invoker &takeAssignmentSessionLocator-assignment-take&inprogress-falseеBookCalculatorPrint ItemPresent Value of Bonds Payable; PremiumMoss Co. issued $105,000 of five-year, 12 % bonds, with interest payable semiannually, at a market (effective) interest rate of 11%.Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7.Note: Round final answer to the nearest dollar.6,300oeqpaayRemember, the selling price of a bond is the sum of the present values of: the face amount of the bonds due at the maturity dateinterest to be paid on the bonds.The market rate of interest is used to compute the present value of both the face amount and the periodic interest.PreCheck imWorkdeUp

Present value: This is the amount of future value reduced or discounted at a rate of interest till…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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* CengageNOWv2 | Online teach x signment/takeASsignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false Issuing bonds at a premium Instructions Chart of Accounts Journal Instructions On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual interest of $175,000 ($5,000,000 x 7% x %), receiving cash of $5,400,000. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles.
Q. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.) A.debit-Premium on bonds payable credit-interest expense (I don't know how to calculate it) Refer to- On January 1, 20X1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for $10,389. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond
ASsignmentiMain.do?invoker=& takeAssignmentSessionLocator%3D&inprogress%-false rk eBook Calculator Print Item Compute Bond Proceeds, Amortizing Premium by Interest Method, and Interest Expense Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware Co. issued $90,000,000 of five-year, 12% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar. b. The amount of premium to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. C. The amount of premium to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. d. The amount of the bond interest expense for the first year. Round to the nearest dollar. SHEET.A... SHEET KSHEET.A...…
v2.cengagenow.com 403114 Discount Amortization On the first day of the fiscal year, a company issues a $1,100,000, 7%, 7-year bond that pays semiannual interest of $38,500 ($1,100,000 x 7% x 1/2), receiving cash of $1,041,903. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
akeAssignment/takeAssignmentMaln.do?IhvoRer=alaReASsIU On the first day of the fiscal year, a company issues a $910,000, 9%, 5-year bond that pays semiannual interest of $40,950 ($910,000 x 9% x 1/2 receiving cash of $884,179. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.
PB6. 13.3 Edward 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 semiannually. The discount is amortized using the straightline 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 discount
Issuance of Long-Term Debt Anne Corp. issued $366,000, 5% bonds. Required: Provide the necessary journal entry to record the issuance of these bonds assuming: Hide a. The bonds were issued at par. Record issuance of bond at par Hide b. The bonds were issued at 102. If an amount box does not require an entry, leave it blank. Record issuance of bond at premium Hide c. The bonds were issued at 92. If an amount box does not require an entry, leave it blank.…
akeAssignment/take AssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false Issuing Bonds at a Premium 000 D On the first day of the fiscal year, a company issues a $3,200,000, 7%, 4-year bond that pays semiannual interest of $112,000 ($3,200,000 x 7% x 2), receiving cash of $3,312,316. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. 000 Previous Next Upda >
Present entries to record the selected transactions described below: Required: a. Issued $2,750,000 of 10-year, 8% bonds at 97.* b. Amortized bond discount for a full year, using the straight-line method.* c. Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of the redemption.* *Refer to the Chart of Accounts for exact wording of account titles. General Journal a. Issued $2,750,000 of 10-year, 8% bonds at 97 on January 1. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 b. Amortized bond discount for a full year, using the straight-line method, on December 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL…
Bond (Held-to-Maturity)Investment Journalize the entries to record the following selected bond investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. a. Purchased for cash $108,000 of Hotline Inc. 6% bonds at 100 plus accrued interest of $1,080. Investments-Hotline Inc. Bonds 108,000 Interest Receivable 1,080 Interest Receivable 1109.080 b. Received first semiannual interest payment. Cash 3,240 Interest Receivable 1,080
The first day of the fiscal year, a company issues a $700,000, 6%, 10-year bond that pays semiannual interest of $21,000 ($700,000 × 6% × ½ year), receiving cash of $700,000. Question Content Area a. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. Cash Cash Bonds Payable Bonds Payable Feedback Area Feedback Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. Question Content Area b. Journalize the entry to record the first interest payment. If an amount box does not require an entry, leave it blank. Interest Expense Interest Expense Cash Cash Feedback Area Feedback The interest payment is calculated using the following formula: Principle x Interest Rate x Time. Question Content Area c. Journalize the entry to record the payment of…
Entries for issuing bonds and amortizing premium by straight-line method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $6, 100,000 of 8-year, 7% bonds at a market (effective) interest rate of 4%, receiving cash of $7, 342, 360. Interest is payable semiannually on April 1 and October 1. Question Content Area a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. blankAccountDebitCredit blank Question Content Area b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for 6 months, using the straight-line method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. blankAccount DebitCredit blank Question Content Area c. Why was the company able to issue the bonds for $7, 342, 360 rather than for the face amount of $6, 100,000? The market rate of interest is…

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