Question

In: Accounting

On January 1, 2012, Davie Services issued $20,000 of 8% bonds that mature in five years.  They...

On January 1, 2012, Davie Services issued $20,000 of 8% bonds that mature in five years.  They were sold at a premium, for a total of $20,750. Interest paid semi annually at each June 30 and Dec 31.

Journalize transactions on Jan 1 2012, June 30 2012 and Dec 31 2012 . Show calculations.

Solutions

Expert Solution


Related Solutions

On January 1, 2014, Cron Corporation issued $740,000 in bonds that mature in ten years. The...
On January 1, 2014, Cron Corporation issued $740,000 in bonds that mature in ten years. The bonds have a stated interest rate of 12 percent and pay interest on June 30 and December 31 each year. When the bonds were sold, the market rate of interest was 10 percent. The company uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required: 1. What...
Waveland Corporation issued a $1,200,000 in bonds which mature in 8 years. The bonds pay an...
Waveland Corporation issued a $1,200,000 in bonds which mature in 8 years. The bonds pay an annual coupon rate of 12%. Interest payments are made semi-annually. The current market rate for similar bonds is 10%. The bonds sell for $1,330,053. Create a table showing the amortized or discount for the first two years of the bonds.
Waveland Corporation issued a $1,200,000 in bonds which mature in 8 years. The bonds pay an...
Waveland Corporation issued a $1,200,000 in bonds which mature in 8 years. The bonds pay an annual coupon rate of 12%. Interest payments are made semi-annually. The current market rate for similar bonds is 10%. The bonds sell for $1,330,053. a. Show the journal entries for the bond issuance, first interest payment, and bond retirement at maturity Waveland Corporation issued a $1,200,000 in bonds which mature in 8 years. The bonds pay an annual coupon rate of 12%. Interest payments...
BankMart Inc. recently issued bonds that mature in 8 years. They have a par value of...
BankMart Inc. recently issued bonds that mature in 8 years. They have a par value of $1,000 and an annual coupon of 4%. Your required rate of return is 10%. Hint: This bond pays a fixed amount of coupon at the end of each period and pays the par value when it matures. annual coupon payment = par value * annual coupon rate. What is the maximum price you want to pay for the bond?
On January 1, 2012, Corporation A issued $18,000,000 of 10% ten-year bonds at 103. The bonds...
On January 1, 2012, Corporation A issued $18,000,000 of 10% ten-year bonds at 103. The bonds are callable at the option of Corporation A at 105. Corporation A has recorded amortization of the bond premium on the straight line method. On December 31, 2018, when the fair value of the bonds was 96, Corporation A repurchased $4,000,000 if the bonds in the open market at 96. Corporation A has recorded interest and amortization for 2018. What amount of gain/loss(ignoring income...
P&P Corporation has issued 10,000 units of face value bonds that mature in 8 years and...
P&P Corporation has issued 10,000 units of face value bonds that mature in 8 years and pay a coupon rate of 6% paid annually. Calculate the yield if each bond unit is selling at $980.
CASIO Corp. issued P500,000 face value bonds on January 1, 20x8. The bonds, which will mature...
CASIO Corp. issued P500,000 face value bonds on January 1, 20x8. The bonds, which will mature on January 1, 20x11 pay interest of 12% every December 31. The bonds are issued to yield 10% interest. What is the carrying value of the bonds on December 31, 20x9?
7. On July 1, 2018, Mason & Beech Services issued $31,000 of 10% bonds that mature...
7. On July 1, 2018, Mason & Beech Services issued $31,000 of 10% bonds that mature in five years. They were issued at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2018, what is the total amount paid to bondholders? On January 1, 2019, First Street Sales issued $18,000 in bonds for $16,700. These are six−year bonds with a stated interest rate of 12% that pay semiannual interest. First...
Churchill Corporation just issued bonds that will mature in 10 years.  George Corporation just issued bonds that...
Churchill Corporation just issued bonds that will mature in 10 years.  George Corporation just issued bonds that will mature in 12 years.  Both bonds are standard coupon bonds and cannot be retired early.  The two bonds are equally liquid.  Which of the following statements is correct? If the yield curve for Treasury securities is flat, Churchill's bond will have the same yield as George's bonds. If the yield curve for Treasury securities is upward sloping, George's bonds will have a higher yield than Churchill's...
On January 1, 2016, Sayers Company issued $181,000 of five-year, 8 percent bonds at 104. Interest...
On January 1, 2016, Sayers Company issued $181,000 of five-year, 8 percent bonds at 104. Interest is payable semiannually on June 30 and December 31. The premium is amortized using the straight-line method.    No Date General Journal Debit Credit 1 Jan 01, 2016 Cash 188,240 Premium on bonds payable 7,240 Bonds payable 181,000 2 Jun 30, 2016 Interest expense Premium on bonds payable 724 Cash 3 Dec 31, 2016 Interest expense Premium on bonds payable 724 Cash 4 Jun...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT