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In: Accounting
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to...
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method
Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $7,800,000 of 8-year, 8% bonds at a market (effective) interest rate of 6%, receiving cash of $8,779,767. Interest is payable semiannually on April 1 and October 1.
a. Journalize the entry to record the issuance of bonds on April 1, Year 1. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to record the first interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) If an amount box does not require an entry, leave it blank.
c. Why was the company able to issue the bonds for $8,779,767 rather than for the face amount of $7,800,000? The market rate of interest is ? the contract rate of interest.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to...
Entries for Issuing Bonds and Amortizing Premium by
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receiving cash of $8,015,428. Interest is payable semiannually on
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Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to...
Entries for Issuing Bonds and Amortizing Premium by
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Smiley Corporation wholesales repair products to equipment
manufacturers. On April 1, 20Y1, Smiley issued $3,800,000 of
5-year, 6% bonds at a market (effective) interest rate of 5%,
receiving cash of $3,966,289. Interest is payable semiannually on
April 1 and October 1.
a. Journalize the entry to record the issuance
of bonds on April 1, 20Y1. If an amount box does not require an
entry, leave it blank.
fill in the...
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to...
Entries for Issuing Bonds and Amortizing Premium by
Straight-Line Method
Smiley Corporation wholesales repair products to equipment
manufacturers. On April 1, Year 1, Smiley issued $7,200,000 of
5-year, 10% bonds at a market (effective) interest rate of 9%,
receiving cash of $7,484,858. Interest is payable semiannually on
April 1 and October 1.
a. Journalize the entry to record the issuance
of bonds on April 1, Year 1. If an amount box does not require an
entry, leave it blank.
Cash...
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to...
Entries for Issuing Bonds and Amortizing Premium by
Straight-Line Method
Smiley Corporation wholesales repair products to equipment
manufacturers. On April 1, Year 1, Smiley issued $7,200,000 of
5-year, 10% bonds at a market (effective) interest rate of 9%,
receiving cash of $7,484,858. Interest is payable semiannually on
April 1 and October 1.
a. Journalize the entry to record the issuance
of bonds on April 1, Year 1. If an amount box does not require an
entry, leave it blank.
Cash...
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Daan Corporation wholesales repair products to...
Entries for Issuing Bonds and Amortizing Premium by
Straight-Line Method
Daan Corporation wholesales repair products to equipment
manufacturers. On April 1, 2016, Daan Corporation issued $3,900,000
of 8-year, 7% bonds at a market (effective) interest rate of 5%,
receiving cash of $4,409,147. Interest is payable semiannually on
April 1 and October 1.
a. Journalize the entry to record the issuance
of bonds on April 1, 2016. For a compound transaction, if an amount
box does not require an entry, leave...
14-07 14-3Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Daan Corporation wholesales repair products...
14-07 14-3Entries for Issuing Bonds and Amortizing Premium by
Straight-Line Method
Daan Corporation wholesales repair products to equipment
manufacturers. On April 1, 2016, Daan Corporation issued $1,400,000
of 8-year, 7% bonds at a market (effective) interest rate of 6%,
receiving cash of $1,487,929. Interest is payable semiannually on
April 1 and October 1.
a. Journalize the entry to record the issuance
of bonds on April 1, 2016. For a compound transaction, if an amount
box does not require an entry,...
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its...
Entries for Issuing Bonds and Amortizing Discount by
Straight-Line Method
On the first day of its fiscal year, Chin Company issued
$22,000,000 of five-year, 8% bonds to finance its operations of
producing and selling home improvement products. Interest is
payable semiannually. The bonds were issued at a market (effective)
interest rate of 10%, resulting in Chin receiving cash of
$20,301,142.
a. Journalize the entries to record the following:
Issuance of the bonds.
First semiannual interest payment. The bond discount is...
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its...
Entries for Issuing Bonds and Amortizing Discount by
Straight-Line Method
On the first day of its fiscal year, Chin Company issued
$29,800,000 of five-year, 11% bonds to finance its operations of
producing and selling home improvement products. Interest is
payable semiannually. The bonds were issued at a market (effective)
interest rate of 13%, resulting in Chin receiving cash of
$27,657,846.
a. Journalize the entries to record the
following:
Issuance of the bonds.
First semiannual interest payment. The bond discount is...
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its...
Entries for Issuing Bonds and Amortizing Discount by
Straight-Line Method
On the first day of its fiscal year, Chin Company issued
$22,800,000 of five-year, 11% bonds to finance its operations of
producing and selling home improvement products. Interest is
payable semiannually. The bonds were issued at a market (effective)
interest rate of 12%, resulting in Chin Company receiving cash of
$21,960,845.
a. Journalize the entries to record the
following:
Issuance of the bonds.
First semiannual interest payment. The bond discount...
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its...
Entries for Issuing Bonds and Amortizing Discount by
Straight-Line Method
On the first day of its fiscal year, Chin Company issued
$21,200,000 of five-year, 7% bonds to finance its operations of
producing and selling home improvement products. Interest is
payable semiannually. The bonds were issued at a market (effective)
interest rate of 9%, resulting in Chin Company receiving cash of
$19,522,554.
a. Journalize the entries to record the
following:
Issuance of the bonds.
First semiannual interest payment. The bond discount...
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