Question
In: Accounting
On January 1, 2021, Bradley Recreational Products issued $150,000, 9%, four-year bonds. Interest is paid semiannually...
On January 1, 2021, Bradley Recreational Products issued
$150,000, 9%, four-year bonds. Interest is paid semiannually on
June 30 and December 31. The bonds were issued at $136,028 to yield
an annual return of 12%. (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.)
Required:
1. Prepare an amortization schedule that determines
interest at the effective interest rate.
2. Prepare an amortization schedule by the
straight-line method.
3. Prepare the journal entries to record interest
expense on June 30, 2023, by each of the two approaches.
5. Assuming the market rate is still 12%, what
price would a second investor pay the first investor on June 30,
2023, for $18,000 of the bonds?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On January 1, 2018, Bradley Recreational Products issued $150,000, 12%, four-year bonds. Interest is paid semiannually...
On January 1, 2018, Bradley Recreational Products issued
$150,000, 12%, four-year bonds. Interest is paid semiannually on
June 30 and December 31. The bonds were issued at $141,044 to yield
an annual return of 14%. (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.) Required: 1. Prepare an amortization schedule
that determines interest at the effective interest rate. 2. Prepare
an amortization schedule...
On January 1, 2018, Bradley recreational Products issued $150,000, 9%, 4 year bonds. Interest is paid...
On January 1, 2018, Bradley recreational Products issued
$150,000, 9%, 4 year bonds. Interest is paid semi-annually on June
30 and December 31. The bonds were issued at $136,028 to yield an
annual return of 12%. (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.) Required: 1. Prepare an amortization schedule
that determines interest at the effective interest rate. (Enter
your answer in...
On January 1, 2018, Bradley Recreational Products issued $125,000, 10%, four-year bonds. Interest is paid semiannually...
On January 1, 2018, Bradley Recreational Products issued
$125,000, 10%, four-year bonds. Interest is paid semiannually on
June 30 and December 31. The bonds were issued at $ 117,237 to
yield an annual return of 12%. ( use FV of 1$, PV of 1$ etc…..)
Required:
1. Prepare an amortization schedule that determines interest at
the effective interest rate. (Enter your answers in whole
dollars.)
Payment Number Cash Payment Effective Interes t Increase in
Balance Carrying Value
1
2
3...
On January 1, 2018, Bradley Recreational Products issued $125,000, 10%, four-year bonds. Interest is paid semiannually...
On January 1, 2018, Bradley Recreational Products issued
$125,000, 10%, four-year bonds. Interest is paid semiannually on
June 30 and December 31. The bonds were issued at $117,237 to yield
an annual return of 12%. (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.)
Required:
1. Prepare an amortization schedule that determines
interest at the effective interest rate.
2. Prepare an amortization schedule...
On January 1, 2020, The Justice League issued $100,000, 9%, four-year bonds. Interest is paid semiannually on...
On January 1, 2020, The Justice League issued $100,000, 9%,
four-year bonds. Interest is paid semiannually on June
30 and December 31. The bonds were issued at $96,768 to
yield an annual return of 10%.
Required:
Show how Justice League calculated the $96,768 bond price
(round each to the whole dollar).
Prepare an amortization schedule for the dates indicated using
the effective interest rate method.
Date
Cash Payment
Interest Expense
Amortization
Carry Value
1/1/2020
6/30/2020
12/31/2020
6/30/2021
Prepare the journal entries to...
On January 1, 2016, Lamb Services issued $200,000, 9%, four-year bonds. Interest is paid semiannually on...
On January 1, 2016, Lamb Services issued $200,000, 9%, four-year
bonds. Interest is paid semiannually on June 30 and December 31.
The bonds were issued at $193,537 when the market rate was 10%.
Required:
1. Prepare an amortization schedule
that determines interest at the effective interest rate.
2. Prepare an amortization schedule by
the straight-line method.
3. Prepare the journal entries to
record interest expense on June 30, 2018, by each of the two
approaches.
On January 1, 2014, Apple Smith Co. issued $200,000, 9%, four-year bonds. Interest is paid semiannually...
On January 1, 2014, Apple Smith Co. issued $200,000, 9%,
four-year bonds. Interest is paid semiannually on June 30 and
December 31. The bonds were issued at $187,330.87 to yield an
annual return of 11%.
Required:
1. Prepare an amortization schedule that determines interest at
the effective interest rate for each period.
2. Prepare an amortization schedule by the straight-line method
for each of the eight interest payment periods.
3. Prepare the journal entries to record interest expense on
June...
On January 1, 2016, Emily Tax Services issued $200,000, 9%, four-year bonds. Interest is paid semiannually...
On January 1, 2016, Emily Tax Services issued $200,000, 9%,
four-year bonds. Interest is paid semiannually on June 30 and
December 31. The bonds were issued when the market rate was 8%.
Required:
5.Find the selling price of the Bonds
6.Prepare an amortization schedule that determines interest at
the effective interest rate.
7.Prepare an amortization schedule by the straight-line
method.
8.Prepare the journal entries to record interest expense on June
30, 2018, by each of the two approaches.
Please provide...
Harrison Company issued $600,000 of 10%, 20-year bonds on January 1, 2020. Interest is paid semiannually...
Harrison Company issued $600,000 of 10%, 20-year bonds on
January 1, 2020. Interest is paid semiannually on July 1 and
December 31 each year. Harrison Company uses the straight-line
method of amortization for bond premium or discount.
B. Assume the bonds are issued at 100. Provide the journal
entries for the issuance of the bonds and the first two interest
payments. (3 points)
On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June...
On January 1, 2021, Tennessee Harvester Corporation issued
debenture bonds that pay interest semiannually on June 30 and
December 31. Portions of the bond amortization schedule appear
below:
Payment
Cash
Payment
Effective
Interest
Increase in
Balance
Outstanding
Balance
7,041,478
1
340,000
352,074
12,074
7,053,552
2
340,000
352,678
12,678
7,066,230
3
340,000
353,311
13,311
7,079,541
4
340,000
353,977
13,977
7,093,518
5
340,000
354,676
14,676
7,108,194
6
340,000
355,410
15,410
7,123,604
~
~
~
~
~
~
~
~
~
~
~...
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