Q6. ABC Corporation borrowed SAR 150,000 at 10% interest from NCB Bank on Jan. 1, 2020, for specific purposes of constructing special-purpose equipment to be used in its operations. Construction on the equipment began on Jan. 1, 2020, and other general debt existing on Jan. 1, 2020 was: SAR 200,000, 12%, 10-year bonds payable SAR 100,000, 11%, 5-year note payable The weighted-average accumulated expenditures was SAR 250,000. Compute the Actual and Avoidable Interest and Pass journal entry for the appropriate interest to be capitalized.

Deere & Company’s 2018 10-K reports the following footnote relating to long-term debt for its equipment operations subsidiary. Deere’s borrowings include $300 million, 7.125% notes, due in 2031

Hh1.

Qw. 27. On January 1, 2022, Pipestone Corporation issued a four-year, $40,000, 7% bond. The interest is payable annually each December 31. The issue price was $38,672 based on an 8% effective interest rate. Pipestone uses the effective-interest amortization method. The 2023 interest expense is closest to .

Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the company’s general borrowings for the year:     £m 10% loan repayable 20X9 250  8% loan repayable 20Y2 750   Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £45 million on that date to fund construction. On 1 September 20X8 an additional £60 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8. Select one: a. £5,000,000 b. £4,250,000 c. £5,418,750 d. £850,000 e. £8,925,000 f. £3,056,250

D4.   As of december 31, 2019, Sandy Beach had $9,500,000 in 4.5 percent serial bonds outstanding. Cash of $509,000 is the debt service fund’s only asset as of December 31, 2019, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments.

To get cash to purchase operating assets, Ballard Company, with a December 31 fiscal year-end, issued bonds with the following characteristics: (i) (ii) (iii) (iv) C. Date of bonds: January 1, 2011 Maturity amount and date: $100,000 due in 10 years (December 31, 2020). Interest: 11% per year payable each December 31. Date issued: January 1, 2011. Required: a. Construct the amortization table for the first 2 years for each bond. See (b). b. Give the journal entries to record the issuance and the first 2 interest payments under each of 3 different independent cases: Case A - The bonds sold at par. Case B - The bonds sold to yield 12%. Case C - The bonds sold to yield 10% Provide the following amounts to be reported on the 2011 financial statements: a., Interest expense b., Bonds payable c., Unamortized premium or discount d., Net Liability e., Stated rate of interest (coupon rate) f., Cash paid for interest Case A $ Case B $ Case C $

On January 1, $834,000, 5-year, 10% bonds, were issued for $808,980. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, what is the semiannual amortization amount? Select the correct answer. $5,004 $2,502 $41,700 O $25,020

Warren Company issued $850,000 of 6%, 5-year bonds dated on January 1, 2020, for $890,800. Interest is paid semi-annually. What is the total amount of interest expense for the bonds for the year 2020, assuming straight-line amortization? Multiple Choice о O $59,160 $51,000 $50,660 $42.840