Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $493,608 when the market rate is 10%. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be recognized over the bonds’ life. 3. Prepare an effective interest amortization table like the one in Exhibit 14B.2 for the bonds’ first two years. 4. Prepare the journal entries to record the first two interest payments. Analysis Component 5. Assume that the market rate at issuance is 14% instead of 10%. Without presenting numbers, describe how this change affects the amounts reported on Valdez’s financial statements.

On January 1, 2019, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity. Required:   Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the:   1. straight-line method of amortization 2. effective interest method of amortization

On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9,472,126. The bonds pay 30. Score Ltd, amortizes bond premium by the effective-interest method. Required 1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method. 2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 3 Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) B: Interest Expense (4.5% of Preceding Bond Carrying Amount) A: Interest Payment Semi-annual Interest (5.5% of Maturity Period Values) Issue date. March 31, 2024 September 30, 2024 March 31, 2025 September 30, 2025 440,000 440,000 440,000 440,000 426,245 C: Premium Amortization (A-B) 13,755 D: Unamortized Premium…

Sheridan Inc. issues $5,000,000, 5-year, 10% bonds at 101, with interest payable annually on January 1. The straight-line method is used to amortize bond premium. a) Prepare the journal entry to record the sale of these bonds on January 1, 2022 b)

On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is paid annually on December 31. The market (effective) rate of interest is 4%. If the bond sells as 88.2, what the amount of interest expense reported on the Income Statement for 2019 (hint: prepare an amortization schedule)

Haley Inc. issued $350,000, 8% bonds on August 1, 2021.  Interest is payable semi-annually on February 1 and August 1.  The bonds mature on August 1, 2025.  At the time of issuance, similar bonds were trading at 9%.  Haley Inc. has a year-end of December 31. Required: Create a bond amortization schedule for the term of the bond.  Round amounts to the nearest dollar. Prepare all required journal entries for 2021 and 2022 (including the issuance of the bonds).  Round all amounts to the nearest dollar.

Stinson Corporation issued $520,000 of 5​%, 10​-year bonds payable on March​ 31, 2019. The market interest rate at the date of issuance was 9​%, and the bonds pay interest semiannually. Stinson ​Corporation's year-end is March 31. Review the following amortization table for Stinson​'s ​bonds: Using the amortization table for Stinson​'s ​bonds, answer the questions​below:   Semiannual      Interest       Interest    Discount        Discount  Bond          Interest Date   Payment      Expense   Amortization  Balance  Carying Amt Mar 31, 2019                                                          $ 135,283    384,717 Sep 30, 2019 $     13,000  $  17,312  $       4,312       130,971    389,029 Mar 31, 2020        13,000      17,506           4,506        126,465  393,535 Sep 30, 2020        13, 000    17,709           4,709       121,756     398,244 1 How much cash did Stinson Corporation borrow on March​ 31, 2019​?How much cash will the company pay back at maturity on March​ 31,…

Lennar Inc. issued $100,000 of 10% bonds dated May 1, 2021 for $239,588. The bonds mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on October 31 and April 30. Lennar's fiscal year is the calendar year. Lennar uses the effective interest method of amortization. Required: 1. Prepare the journal entry to record the bond issuance on May 1, 2021. 2. Prepare the necessary journal entry on October 31, 2021 (1st payment). 3. Prepare the adjusting entry for the accrued interest (for 2 months) on December 31, 2021

X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity:   Date Cash Paid InterestExpense Decrease inCarrying Value CarryingValue   01/01/2021       124,380   12/31/2021 15,000 14,304 696 123,684   12/31/2022 15,000 14,224 776 122,907   12/31/2023 15,000 14,134 866 122,042   12/31/2024 15,000 14,035 965 121,076   12/31/2025 15,000 13,924 1,076 120,000     What is the annual market interest rate on the bonds?   Multiple Choice   5.8%.   6.3%.   11.5%.   12.5%.

On January 1, 2019, Rodgers Company purchased $200,000 face value, 10%, 3-year bonds for $190,165.35, a price that yields a 12% effective annual interest rate. The bonds pay interest semiannually on June 30 and December 31. Required: 1. Record the purchase of the bonds. 2. Prepare an investment interest income and discount amortization schedule using the effective interest method. 3. Record the receipts of interest on June 30, 2019, and June 30, 2021.