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Find Solutions For Your Homework businessaccountingaccounting questions and answersRequired Information Problem 10-4A Straight-Line: Amortization Of Bond...
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Information Problem 10-4A Straight-Line: Amortization Of Bond
Discount LO P2 The Following ...
Question: Required Information Problem 10-4A Straight-Line:
Amortization Of Bond Discount LO P2 The Following Information
Applies To The Questions Displayed Below.) Legacy Issues $560,000
Of 9.0%, Four-year Bonds Dated January 1, 2019, That Pay Interest
Semiannually On June 30 And December 31. They Are Issued At
$507,831 When The Market Rate Is 12% Problem 10-4A ...
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Required information Problem 10-4A Straight-Line: Amortization
of bond discount LO P2 The following information applies to
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Required information Problem 10-4A Straight-Line: Amortization
of bond discount LO P2 [The following information applies to
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Required information Problem 10-4A Straight-Line: Amortization
of bond discount LO P2 [The following information applies to
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Required information Problem 10-4A Straight-Line: Amortization
of bond discount LO P2 The following information applies to the
questions displayed below.) Legacy issues $560,000 of 9.0%,
four-year bonds dated January 1, 2019, that pay interest
semiannually on June 30 and December 31. They are issued at
$507,831 when the market rate is 12% Problem 10-4A Part 2 2.
Determine the total bond interest expense to be recognized over the
bonds' life Total bond interest expense over life of bonds: Amount
repaid payments of $ 19,380,000 Par value at maturity Total repaid
Less amount borrowed Total bond interest expense 57.000.000
57,000,000 50.805.000 6.195.000 $ Required information Problem
10-4A Straight-Line: Amortization of bond discount LO P2 [The
following information applies to the questions displayed below)
Legacy issues $560,000 of 9.0%, four-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
They are issued at $507,831 when the market rate is 12% Problem
10-4A Part 3 3. Prepare a straight-line amortization table for the
bonds' first two years. Unamortized Discount Carrying Value
Semiannual Period End 01/01/2019 06/30/2019 12/31/2019 06/30/2020
12/31/2020 Required information Problem 10-4A Straight-Line:
Amortization of bond discount LO P2 [The following information
applies to the questions displayed below) Legacy issues $560,000 of
9.0%, four-year bonds dated January 1 2019, that pay interest
semiannually on June 30 and December 31. They are issued at
$507,831 when the market rate is 12% Problem 10-4A Part 4 4.
Prepare the journal entries to record the first two interest
Solutions
Expert Solution
| Interest semi annual | 6% | |||||||||||||||||||
| Face value | 560000 | |||||||||||||||||||
| Coupon Payment | 25200 | |||||||||||||||||||
| number of payments | Date | Carrying value at beginning | Coupon Payment(a) | Interest Expense(b) | Discount Amortization(b-c) | closing carrying value | ||||||||||||||
| 0 | 13-Dec-19 | 507831 | - | - | - | 507831 | ||||||||||||||
| 1 | 30-Jun-20 | 507831 | 25200 | 30470 | 5270 | 513101 | ||||||||||||||
| 2 | 31-Dec-20 | 513101 | 25200 | 30786 | 5586 | 518687 | ||||||||||||||
| 3 | 30-Jun-21 | 518687 | 25200 | 31121 | 5921 | 524608 | ||||||||||||||
| 4 | 31-Dec-21 | 524608 | 25200 | 31476 | 6276 | 530885 | ||||||||||||||
| 5 | 30-Jun-22 | 530885 | 25200 | 31853 | 6653 | 537538 | ||||||||||||||
| 6 | 31-Dec-22 | 537538 | 25200 | 32252 | 7052 | 544590 | ||||||||||||||
| 7 | 30-Jun-23 | 544590 | 25200 | 32675 | 7475 | 552065 | ||||||||||||||
| 8 | 31-Dec-23 | 552065 | 25200 | 33124 | 7924 | 559989 | ||||||||||||||
| Notes | ||||||||||||||||||||
| interest expense = 6% x carrying value at beginning | ||||||||||||||||||||
| closing carrying value = closing value at beginning +discount amortization | ||||||||||||||||||||
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Exercise 10-15 Straight-Line: Amortization and accrued bond
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[The following information applies to the questions
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[The following information applies to the questions
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Legacy issues $660,000 of 5.5%, four-year bonds dated January 1,
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[The following information applies to the questions
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[The following
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below.]
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