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Problem 14-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 [The following information...
Problem 14-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3
[The following information applies to the questions
displayed below.]
Legacy issues $620,000 of 9.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $571,867 and their market rate is 12% at the issue date.
Problem 14-5A Part 3
3. Prepare a straight-line amortization table
for the bonds' first two years.
Solutions
Expert Solution
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Problem 14-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 [The following information...
Problem 14-5A Straight-Line: Amortization of bond premium and
discount LO P1, P2, P3
[The following information applies to the questions
displayed below.]
Legacy issues $660,000 of 5.5%, four-year bonds dated January 1,
2017, that pay interest semiannually on June 30 and December 31.
They are issued at $648,412 and their market rate is 6% at the
issue date.
Problem 14-5A Part 4
4. Prepare the journal entries to record the
first two interest payments.
Problem 14-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 [The following information...
Problem 14-5A Straight-Line: Amortization of bond premium and
discount LO P1, P2, P3
[The following
information applies to the questions displayed
below.]
Legacy issues $710,000
of 8.0%, four-year bonds dated January 1, 2017, that pay interest
semiannually on June 30 and December 31. They are issued at
$621,812 and their market rate is 12% at the issue date.
1. Prepare the January 1, 2017, journal entry
to record the bonds' issuance.
2. Determine the total bond interest expense to
be...
Problem 14-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $2,900,000 of 9%, 15-year...
Problem 14-2A Straight-Line: Amortization of bond discount LO
P1, P2
Hillside issues $2,900,000 of 9%, 15-year bonds dated January 1,
2017, that pay interest semiannually on June 30 and December 31.
The bonds are issued at a price of $2,505,923.
Required:
1. Prepare the January 1, 2017, journal entry
to record the bonds’ issuance.
2(a) For each semiannual period, complete the
table below to calculate the cash payment.
2(b) For each semiannual period, complete the
table below to calculate the...
Problem 10-3A Straight-Line: Amortization of bond premium LO P1, P3 Hillside issues $3,000,000 of 6%, 15-year...
Problem 10-3A Straight-Line: Amortization of bond premium LO P1,
P3 Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1,
2018, that pay interest semiannually on June 30 and December 31.
The bonds are issued at a price of $3,671,990. Required: 1. Prepare
the January 1, 2018, journal entry to record the bonds’ issuance.
2(a) For each semiannual period, complete the table below to
calculate the cash payment. 2(b) For each semiannual period,
complete the table below to calculate the...
Problem 10-2A Straight-Line: Amortization of bond discount LO P1, P2 Hillside issues $1,900,000 of 5%, 15-year...
Problem 10-2A Straight-Line: Amortization of bond discount LO
P1, P2 Hillside issues $1,900,000 of 5%, 15-year bonds dated
January 1, 2018, that pay interest semiannually on June 30 and
December 31. The bonds are issued at a price of $1,641,812.
Required: 1. Prepare the January 1, 2018, journal entry to record
the bonds’ issuance. 2(a) For each semiannual period, complete the
table below to calculate the cash payment. 2(b) For each semiannual
period, complete the table below to calculate the...
Exercise 10-2 Straight-Line: Amortization of bond discount LO P2 Tano issues bonds with a par value...
Exercise 10-2 Straight-Line: Amortization of bond discount LO
P2
Tano issues bonds with a par value of $98,000 on January 1,
2017. The bonds’ annual contract rate is 7%, and interest is paid
semiannually on June 30 and December 31. The bonds mature in three
years. The annual market rate at the date of issuance is 10%, and
the bonds are sold for $90,537.
1. What is the amount of the discount on these
bonds at issuance?
2. How...
Required information Exercise 10-15 Straight-Line: Amortization and accrued bond interest expense LO P2 [The following information...
Required information
Exercise 10-15 Straight-Line: Amortization and accrued bond
interest expense LO P2
[The following information applies to the questions
displayed below.]
Duval Co. issues four-year bonds with a $117,000 par value on
January 1, 2017, at a price of $112,870. The annual contract rate
is 9%, and interest is paid semiannually on June 30 and December
31.
Exercise 10-15 Part 1
1. Prepare an amortization table for these
bonds. Use the straight-line method of interest amortization.
(Round your answers...
QS 14-7 Recording bond issuance and discount amortization LO P1, P2 Sylvestor Company issues 10%, five-year...
QS 14-7 Recording bond issuance and discount amortization LO P1,
P2
Sylvestor Company issues 10%, five-year bonds, on December 31,
2016, with a par value of $110,000 and semiannual interest
payments.
Semiannual Period-End
Unamortized Discount
Carrying Value
(0)
12/31/2016
$
8,200
$
101,800
(1)
6/30/2017
7,380
102,620
(2)
12/31/2017
6,560
103,440
Use the above bond amortization table and prepare journal entries
to record
(a) the issuance of bonds on December 31, 2016
(b) the first interest payment on June 30,...
Required information Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to...
Required information
Serial Problem Business Solutions LO P1, P2, P3, P4
[The following information applies to the questions
displayed below.]
Santana Rey created Business Solutions on October 1, 2017. The
company has been successful, and its list of customers has grown.
To accommodate the growth, the accounting system is modified to set
up separate accounts for each customer. The following chart of
accounts includes the account number used for each account and any
balance as of December 31, 2017. Santana...
Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions...
Serial Problem Business Solutions LO P1, P2, P3, P4 [The
following information applies to the questions displayed below.]
Santana Rey created Business Solutions on October 1, 2015. The
company has been successful, and its list of customers has grown.
To accommodate the growth, the accounting system is modified to set
up separate accounts for each customer. The following chart of
accounts includes the account number used for each account and any
balance as of December 31, 2015. Santana Rey decided...
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