Question
In: Accounting
On July 1, Year 1, Danzer Industries Inc. issued $1,900,000 of 10-year, 9% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $1,900,000 of 10-year, 9% bonds at a market (effective) interest rate of 10%, receiving cash of $1,781,610. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. If an amount box does not require an entry, leave it blank.
2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank.
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar.)
b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar.)
3. Determine the total interest expense for Year 1. Round to the nearest dollar.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On July 1, Year 1, Danzer Industries Inc. issued $1,300,000 of 9-year, 10% bonds at a...
On July 1, Year 1,
Danzer Industries Inc. issued $1,300,000 of 9-year, 10% bonds at a
market (effective) interest rate of 11%, receiving cash of
$1,226,906. Interest on the bonds is payable semiannually on
December 31 and June 30. The fiscal year of the company is the
calendar year.
Required:
1.
Journalize the entry to record the amount of cash proceeds from the
issuance of the bonds on July 1, Year 1. If an amount box does not
require an...
On July 1, Year 1, Danzer Industries Inc. issued $48,800,000 of 10-year, 9% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $48,800,000 of
10-year, 9% bonds at a market (effective) interest rate of 11%,
receiving cash of $42,968,258. Interest on the bonds is payable
semiannually on December 31 and June 30. The fiscal year of the
company is the calendar year. Required: 1. Journalize the entry to
record the amount of cash proceeds from the issuance of the bonds
on July 1, Year 1.* 2. Journalize the entries to record the
following:*...
On July 1, Year 1, Danzer Industries Inc. issued $30,000,000 of 10-year, 9% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $30,000,000 of
10-year, 9% bonds at a market (effective) interest rate of 10%,
receiving cash of $28,130,684. Interest on the bonds is payable
semiannually on December 31 and June 30. The fiscal year of the
company is the calendar year. Required: 1. Journalize the entry to
record the amount of cash proceeds from the issuance of the bonds.*
2. Journalize the entries to record the following:* a. The first
semiannual interest...
On July 1, Year 1, Danzer Industries Inc. issued $26,600,000 of 10-year, 10% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $26,600,000 of
10-year, 10% bonds at a market (effective) interest rate of 11%,
receiving cash of $25,010,623. Interest on the bonds is payable
semiannually on December 31 and June 30. The fiscal year of the
company is the calendar year.
Required:
1.
Journalize the entry to record
the amount of cash proceeds from the issuance of the bonds on July
1, Year 1.*
2.
Journalize the entries to
record the following:*...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of
10-year, 7% bonds at a market (effective) interest rate of 8%,
receiving cash of $37,282,062. Interest on the bonds is payable
semiannually on December 31 and June 30. The fiscal year of the
company is the calendar year.
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of
10-year, 7% bonds at a market (effective) interest rate of 8%,
receiving cash of $37,282,062. Interest on the bonds is payable
semiannually on December 31 and June 30. The fiscal year of the
company is the calendar year. Required: 1. Journalize the entry to
record the amount of cash proceeds from the issuance of the bonds
on July 1, Year 1. 2. Journalize the entries to record the
following:*...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of
10-year, 7% bonds at a market (effective) interest rate of 8%,
receiving cash of $37,282,062. Interest on the bonds is payable
semiannually on December 31 and June 30. The fiscal year of the
company is the calendar year.
Required:
1.
Journalize the entry to record
the amount of cash proceeds from the issuance of the bonds on July
1, Year 1.
2.
Journalize the entries to
record the following:*...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of
10-year, 7% bonds at a market (effective) interest rate of 8%,
receiving cash of $37,282,062. Interest on the bonds is payable
semiannually on December 31 and June 30. The fiscal year of the
company is the calendar year.
Instructions
1. Journalize the entry to record the amount of cash proceeds
from the issuance of the bonds on July 1, Year 1.
2. Journalize the entries to record the following:...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of
10-year, 7% bonds at a market (effective) interest rate of 8%,
receiving cash of $37,282,062. Interest on the bonds is payable
semiannually on December 31 and June 30. The fiscal year of the
company is the calendar year.
Required:
1. Journalize the entry to record the amount of cash proceeds
from the issuance of the bonds on July 1, Year 1.*
2. Journalize the entries to record the following:*...
On July 1, 20Y1, Danzer Industries Inc. issued $37,400,000 of 10-year, 8% bonds at a market...
On July 1, 20Y1, Danzer Industries Inc. issued $37,400,000 of
10-year, 8% bonds at a market (effective) interest rate of 10%,
receiving cash of $32,739,152. Interest on the bonds is payable
semiannually on December 31 and June 30. The fiscal year of the
company is the calendar year.
Required:
1.
Journalize the entry to record the amount of cash proceeds from
the issuance of the bonds on July 1, 20Y1.*
2.
Journalize the entries to record the following:*
a.
The...
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