Question
In: Accounting
Hunter Corp. issued 8% fifteen-year bonds payable with a face amount of $ 100 comma 000...
Hunter Corp. issued 8% fifteen-year bonds payable with a face amount of $ 100 comma 000 when the market interest rate was 8%. Hunter's fiscal year-end on December 31. The bonds pay interest on January 1 and July 1. Read the requirement LOADING.... a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Date Accounts and Explanations Debit Credit 2018 Jul 1 b. Accrual of interest expense on December 31, 2018 Journal Entry Date Accounts and Explanations Debit Credit 2018 Dec 31 c. Payment of cash interest on January 1, 2019 Journal Entry Date Accounts and Explanations Debit Credit 2019 Jan 1 d. Payment of the bonds payable at maturity (give the date) Journal Entry Date Accounts and Explanations Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Derp Corp issued 15 year bonds payable with a face amount of 70,000 when the market...
Derp Corp issued 15 year bonds payable with a face amount of
70,000 when the market interest rate was 6.5%. The bonds were
issued at par. Assume that the accounting year of Derp ends on Dec
31. Journalize the following transactions for Derp.
a. Issuance of the bonds payable at par on July 1, 20x0.
b. Accrual of interest expense on Dec 31, 20x0.
c. Payment of cash interest on January 1, 20x1.
d. Payment of the bonds payable at...
att Winne issued $ 600 comma 000$600,000 of 1717?%, 1010?-year bonds payable on January? 1, 20162016....
att Winne
issued
$ 600 comma 000$600,000
of
1717?%,
1010?-year
bonds payable on January? 1,
20162016.
The market interest rate at the date of issuance was
1414?%,
and the bonds pay interest semiannually.
LOADING...
?(Click the icon to view the Present Value of? $1 table.)
LOADING...
?( Click the icon to view thePresent Value of Annuity of? $1
table.)
LOADING...
?(Click the icon to view the Future Value of? $1 table.)
LOADING...
?(Click the icon to view the Future...
The Bradford Company issued 8% bonds, dated January 1, with a face amount of $100 million...
The Bradford Company issued 8% bonds, dated January 1, with a
face amount of $100 million on January 1, 2018 to Saxton-Bose
Corporation. The bonds mature on December 31, 2037 (20 years). For
bonds of similar risk and maturity, the market yield is 10%.
Interest is paid semiannually on June 30 and December 31. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.):...
On February 28,2018, Marlin Corp. issues 8%, 10-year bonds payable with a face value of $600,000....
On February 28,2018, Marlin Corp. issues 8%, 10-year bonds
payable with a face value of $600,000. The bonds pay interest on
February 28 and August 31. The company amortizes bond discount
using the straight line method.
Requirement 1. If the market interest rate is 7% when Marlin
corp issues its bonds, will the bonds be priced at par, at a
premium, or at a discount? explain.
The 8% bonds issued when the market interest rate is 7% will be
priced...
Seaside Corp. issued 10%, 5-year bonds with a face amount of $50,000 on January 1, 2020....
Seaside Corp. issued 10%, 5-year bonds with a face amount of
$50,000 on January 1, 2020. The market interest rate for bonds of
similar risk and maturity is 12%. Interest is paid semiannually on
June 30 and December 31. Seaside uses the effective interest method
to account for these bonds. What is the issue price of these bonds
on January 1, 2020?
Group of answer choices
$50,000
$83,920
$53,605
$46,320
Bonds payable, 8% (issued at face amount) $10,000,000 Preferred $5,$10 par 10,000.000 Common stock, $20 par...
Bonds payable, 8% (issued at face amount) $10,000,000
Preferred $5,$10 par 10,000.000
Common stock, $20 par 10,000,000
Income tax is estimated at 40% of income.
Determine the earnings per share of common stock
a.) 10,500,000
b.) 11,000,000
C.) 13,000,000
Winner Ltd. is authorized to issue $ 2 comma 000 comma 000 of 3%, 10-year bonds...
Winner Ltd. is authorized to issue $ 2 comma 000 comma 000 of
3%, 10-year bonds payable. On December 31, 2018, when the
market interest rate is 5%, the company issues $ 1 comma 600 comma
000 of the bonds. Winner amortizes bond discount using the
effective-interest method. The semiannual interest dates are June
30 and December 31.
1.Use the PV function in Excel Superscript ® to calculate the
issue price of the bonds.
2.Prepare a bond amortization table for...
Mo’s Motor Corp. issued $230,000 of 8%, 5-year bonds on April 1, 2021. Interest is payable...
Mo’s Motor Corp. issued $230,000 of 8%, 5-year bonds on April 1,
2021. Interest is payable semi-annually on April 1 and October 1.
On April 1, 2023, immediately after making and recording the
semi-annual interest payment, Mo’s redeemed the bonds. Below is a
partial amortization schedule for the first few years of the bond
issue.
Mo's Motor
Corp.
Bond Discount Amortization Schedule
Interest
Period
Interest
Payment
Interest
Expense
Amortization
Bond
Amortized
Cost
01-Apr.
2021
$220,900.37
01-Oct.
2021
$9,200.00
$9,940.52
$740.52...
PROBLEM 5: ON JANUARY 1, 2016 SMITH COMPANY ISSUED 8%, 20-YEAR BONDS PAYABLE WITH FACE VALUE...
PROBLEM 5:
ON JANUARY 1, 2016 SMITH COMPANY ISSUED 8%, 20-YEAR BONDS
PAYABLE WITH FACE VALUE OF $300,000. THE BONDS PAY INTEREST ON JUNE
30 AND DECEMBER 31. THE ISSUE PRICE OF THE BONDS IS 98.
INSTRUCTIONS:
JOURNALIZE THE FOLLOWING BOND TRANSACTIONS:
A) ISSUANCE OF THE BONDS ON JANUARY 1, 2016
B) PAYMENT OF INTEREST AND AMORTIZATION ON JUNE 30, 2016
On December 31, 2015, Jenna Corp issued $1,000,000, 8%, 5-year bonds. Interest is payable semi-annually on...
On December 31, 2015, Jenna Corp issued $1,000,000, 8%, 5-year
bonds. Interest is payable semi-annually on June 30 and December
31. The corporation uses the effective interest method of
amortizing bond premium or discount.
Required
a. Using the present value tables, estimate the issue price of
the bonds under the following three assumptions:
i. Market Rate is 8%
ii. Market Rate is 6%
iii. Market Rate is 10%
b. Prepare the journal entries for each of the assumptions
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