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Question 13: On January 1, 2018, White Water issues $510,000 of 7% bonds, due in 10...

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.

Date	Cash Paid	Interest Expense	Decrease in Carrying Value	Carrying Value
1/1/18
12/31/18
12/31/19

Question 14:

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.)

Record the bond issue.
Record the first annual interest payment.
Record the second annual interest payment.

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:

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

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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