Question
In: Accounting
Option #1: Bonds Issued at a Premium Intel Inc. is the pioneer in the manufacture of...
Option #1: Bonds Issued at a Premium Intel Inc. is the pioneer in the manufacture of microprocessor for computers. On 4/1/2016, Intel issued $800,000 of 12% face value bonds for $851,705.70. The bonds are due in 4 years, and pay interest semiannually on September 30 and March 31. Intel sold the bonds to yield 10%. Use the spreadsheet found in the link at the bottom to prepare a bond interest expense and premium amortization schedule using the straight-line method. Use the attached spreadsheet to prepare a bond interest expense and premium amortization schedule using the effective interest method. Prepare any adjusting entries for the end of the fiscal year, December 31, 2016, using the: straight-line method of amortization effective interest method of amortization Assume the company retires the bonds on June 30, 2017, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: straight-line method of amortization effective interest method of amortization
Attatched Table
| Date | Cash Paid | Interest expense | Premium Amortization | Carrying Amount of Bonds | ||||
| 4/1/2018 | ||||||||
| 4/1/2019 | ||||||||
| 4/1/2020 | ||||||||
| 4/1/2021 | ||||||||
| 4/1/2022 | ||||||||
| 4/1/2023 | ||||||||
| 4/1/2024 | ||||||||
| 4/1/2025 | ||||||||
| 4/1/2026 | ||||||||
| 4/1/2027 |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Bonds Issued at a Premium
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Date of issue and sale:
April 1, 20-1
Principal amount:
$430,000
Sale price of bonds:
104
Denomination of bonds:
$1,000
Life of bonds:
20 years
Stated rate:
10%, payable semiannually on September 30 and March 31
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