In: Accounting
Question 13:
On January 1, 2018, White Water issues $510,000 of 7% bonds, due
in 10 years, with interest payable annually on December 31 each
year.
Assuming the market interest rate on the issue date is 6%, the
bonds will issue at $547,534.
Required;
1. Complete the first three rows of an amortization
table.
|
Question 14:
On January 1, 2018, White Water issues $510,000 of 7% bonds, due
in 10 years, with interest payable annually on December 31 each
year.
Assuming the market interest rate on the issue date is 6%, the
bonds will issue at $547,534.
2. Record the bond issue on January 1, 2018, and the first two interest payments on December 31, 2018, and December 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Question 15:
Christmas Anytime issues $850,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:
Required:
1. The market interest rate is 6% and the bonds issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)
Christmas Anytime issues $850,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:
Required:
1. The market interest rate is 6% and the bonds
issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of
$1) (Use appropriate factor(s) from the tables
provided. Do not round interest rate
factors.)
Issue Price=
Date | Cash Paid | Interest Expense |
Increase in Carrying value |
Carrying Value |
01/01/18 | ||||
06/30/18 | ||||
12/31/18 |
Question 16:
Christmas Anytime issues $850,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:
2.The market interest rate is 7% and the bonds issue at a discount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)
Issue Price=
Date | Cash paid | interest expense |
increase in carrying value |
carrying value |
01/01/18 | ||||
06/30/18 | ||||
13/31/18 |
Question 17:
Christmas Anytime issues $850,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:
3. The market interest rate is 5% and the bonds issue at a premium. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)
Issue Price=
Date | cash paid | interest expense |
decrease in carrying value |
carrying value |
01/01/18 | ||||
06/30/18 | ||||
12/31/18 |