Question
In: Accounting
on January 1, 2016 North Company issued $2000000 of bonds with a stated rate of 10%...
on
January 1, 2016 North Company issued $2000000 of bonds with a
stated rate of 10% that are due to mature December 31, 2025, and
pay interest semiannually. The market rate of interest was 9% at
the date of issuance. Prepare the journal entry for the sale of the
bonds on January 1, 2016. Prepare a Amortization
schedule.
Solutions
ekkarill92 answered 7 months agoRelated Solutions
On january 1, 2017, A company issued 12% stated rate bonds with a face amount of...
On january 1, 2017, A company issued 12% stated rate bonds with a face amount of $200 million. The bonds mature on january 1, 2027 and market rate was 14%.
Please answer the following:
1.n=
2.i=
3.Total present value of interest payment=
4.Total present value of principal=
5.Total price of bonds=
On January 1, 20D, Janus Company issued $5 million of 10-year bonds at a 10% stated...
On January 1, 20D, Janus Company issued $5 million of 10-year
bonds at a 10% stated interest rate to be paid semiannually. Assume
straight-line amortization.
15. If Janus issued the bonds at a price of 106.5, the amount of
interest expense on June 20, 20D equals:
(a) $467,500
(b) $440,875
(c) $233,750
(d) $222,044
16. If Janus issued the bonds at a price of 106.5, what is the
book value of Janus' bonds on July 1, 20D after the interest...
On January 1, 2014, Partridge Advertising Company issued $50,000 of 6-year bonds with a stated rate...
On January 1, 2014, Partridge Advertising Company issued $50,000
of 6-year bonds with a stated rate of 3%. The market rate at time
of issue was 4%, so the bonds were discounted and sold for $47,356.
Partridge uses the effective-interest method of amortization for
bond discount. Semiannual interest payments are made on June 30 and
December 31 of each year. Prepare the amortization table for the
first four interest payments. (Round your answers to nearest dollar
number.)
Eureka Company issued $290,000 in bonds payable on January 1, 2016. The bonds were issued at...
Eureka Company issued $290,000 in bonds payable on January 1,
2016. The bonds were issued at face value and carried 4-year term
to maturity. They had a 5% stated rate of interest that was payable
in cash on January 1st of each year beginning January 1, 2017.
Based on this information, the amount of total liabilities
appearing on the December 31, 2016 balance sheet would be:
$290,000. $288,550. $304,500. $14,500.
XYZ Corporation issued bonds on January 1, 2020 with a face value of $1,000, 10% stated...
XYZ Corporation issued bonds on January 1, 2020 with a face
value of $1,000, 10% stated interest rate, with semi-annual
payments, and a maturity date of December 31, 2024 (4 years). The
market interest rate is 8%.
Required: (Answers may be rounded to the nearest dollar)
1. Compute the market price of the bonds and the journal entry
to record issuance of the bonds on January 1, 2020. 2. Record the
journal entry for the first semi-annual interest payment on...
Sparks Company received proceeds of $634,500 on 10-year, 8% bonds issued on January 1, 2016. The...
Sparks Company received proceeds of $634,500 on 10-year, 8%
bonds issued on January 1, 2016. The bonds had a face value of
$600,000, pay interest annually on December 31st, and have a call
price of 102. Sparks uses the straight-line method of amortization.
Sparks Company decided to redeem the bonds on January 1, 2018. What
amount of gain or loss would Sparks report on their 2018 income
statement?
$27,600 gain
$15,600 gain
$15,600 loss
$27,600 loss
1. On January 1, 2011, Michael’s Incorporated issued $8,000,000 of 10-year bonds at a 11% stated...
1. On January 1, 2011, Michael’s Incorporated issued $8,000,000
of 10-year bonds at a 11% stated
interest rate to be paid annually. Calculate the issuance price
if the market rate of interest is 9%
(Choose the best answer).
(F) $8,000,000
(G) $9,023,840
(H) $8,923,840
(I) $11,376,000
(J) $9,975,023
2.
On November 1, 2016, O&R Ltd. sold 300, $1,000, ten-year, 7%
bonds at 96. The bonds were dated
November 1, 2016, and interest is payable each November 1 and
May 1....
On January 1, Year 1, Victor Company issued bonds with a $650,000 face value, a stated...
On January 1, Year 1, Victor Company issued bonds with a
$650,000 face value, a stated rate of interest of 6%, and a 5-year
term to maturity. The bonds sold at 95. Interest is payable in cash
on December 31 of each year. Victor uses the straight-line method
to amortize bond discounts and premiums. What is the carrying value
of the bond liability at December 31, Year 3?
On January 1, Year 1, Victor Company issued bonds with a $750,000 face value, a stated...
On January 1, Year 1, Victor Company issued bonds with a
$750,000 face value, a stated rate of interest of 5%, and a 5-year
term to maturity. The bonds sold at 96. Interest is payable in cash
on December 31 of each year. Victor uses the straight-line method
to amortize bond discounts and premiums. What is the carrying value
of the bond liability at December 31, Year 3?
On January 1, Year 1, Victor Company issued bonds with a $750,000 face value, a stated...
On January 1, Year 1, Victor Company issued bonds with a
$750,000 face value, a stated rate of interest of 5%, and a 5-year
term to maturity. The bonds sold at 96. Interest is payable in cash
on December 31 of each year. Victor uses the straight-line method
to amortize bond discounts and premiums. What is the amount of
interest expense appearing on the income statement for the year
ending December 31, Year 3?
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