Question
In: Accounting
22. On January 1, 2018, Splash City issues $490,000 of 8% bonds, due in 15 years,...
22.
On January 1, 2018, Splash City issues $490,000 of 8% bonds, due
in 15 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 7%, the
bonds will issue at $535,061.
Required:
1. Complete the first three rows of an amortization
table.
|
2. Record the bond issue on January 1, 2018,
and the first two semiannual interest payments on June 30, 2018,
and December 31, 2018.(If no entry is
required for a transaction/event, select "No journal entry
required" in the first account field.)
Journal entry worksheet
-Record the bond issue.
-Record the first semiannual interest payment.
-Record the second semiannual interest payment.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On January 1, 2021, Splash City issues $460,000 of 8% bonds, due in 15 years, with...
On January 1, 2021, Splash City issues $460,000 of 8% bonds, due
in 15 years, with interest payable semiannually on June 30 and
December 31 each year. The market interest rate on the issue date
is 9% and the bonds issued at $422,536.
2. If the market interest rate drops to 6% on
December 31, 2022, it will cost $542,233 to retire the bonds.
Record the retirement of the
On January 1, 2018, Splash City issues $360,000 of 7% bonds, due in 10 years, with...
On January 1, 2018, Splash City issues $360,000 of 7% bonds, due in
10 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 6%, the
bonds will issue at $386,781.
Required:
1. Complete
the first three rows of an amortization table.
Date
Cash Paid
Interest Expense
Decrease in Carrying Value
Carrying Value
1/1/18
6/30/18
12/31/18
On January 1, 2018, Splash City issues $390,000 of 7% bonds, due in 10 years, with...
On January 1, 2018, Splash City issues $390,000 of 7% bonds, due
in 10 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 8%, the
bonds will issue at $363,500.
Date
Cash Paid
Interest Expense
Increase in Carrying Value
Carrying Value
1/1/18
6/30/18
12/31/18
2. Record the bond issue on January 1, 2018, and
the first two semiannual interest payments on June 30, 2018, and
December...
On January 1, 2018, Splash City issues $470,000 of 9% bonds, due in 20 years, with...
On January 1, 2018, Splash City issues $470,000 of 9% bonds, due
in 20 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 10%, the
bonds will issue at $429,678.
Complete the first three rows of an amortization table.
Date
Cash
Paid
Interest
Expense
Increase
in Carrying Value
Carrying
1/1/18
6/30/18
12/31/18
On January 1, 2018, Splash City issues $470,000 of 9% bonds, due in 20 years, with...
On January 1, 2018,
Splash City issues $470,000 of 9% bonds, due in 20 years, with
interest payable semiannually on June 30 and December 31 each
year.
Assuming the market interest rate on the issue date is 10%, the
bonds will issue at $429,678.
2.
Record the bond issue on January 1, 2018, and the first two
semiannual interest payments on June 30, 2018, and December 31,
2018
Date
General Journal
Debit
Credit
January 01, 2018
On January 1, 2018, Splash City issues $500,000 of 9% bonds, due in 20 years, with...
On
January 1, 2018, Splash City issues $500,000 of 9% bonds, due in 20
years, with interest payable semiannually on June 30 and December
31 each year.
Required:
Assuming the market interest rate
on the issue date is 8%, the bonds will issue at $549,482.
1. Complete the first three rows
of an amortization table.
2. Record the bond issue on
January 1, 2018, and the first two semiannual interest payments on
June 30, 2018, and December 31, 2018.
On January 1, 2018, Splash City issues $500,000 of 9% bonds, due in 20 years, with...
On
January 1, 2018, Splash City issues $500,000 of 9% bonds, due in 20
years, with interest payable semiannually on June 30 and December
31 each year.
Required:
Assuming the market interest rate on the issue date is 10%,
the bonds will issue at $457,102.
1. Complete the first three rows of an amortization
table.
2. Record the bond issue on January 1, 2018, and the first two
semiannual interest payments on June 30, 2018, and December 31,
2018.
On January 1, 2021, Splash City issues $300,000 of 7% bonds, due in 10 years, with...
On January 1, 2021, Splash City issues $300,000 of 7% bonds, due
in 10 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 8%, the
bonds will issue at $279,615.
2. Record the bond issue on January 1, 2021,
and the first two semiannual interest payments on June 30, 2021,
and December 31, 2021.
Record the bond issue.
Date
General Journal
Debit
Credit
January 01, 2021...
Question 9: On January 1, 2018, Splash City issues $450,000 of 7% bonds, due in 10...
Question 9:
On January 1, 2018, Splash City issues $450,000 of 7% bonds, due
in 10 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 8%, the
bonds will issue at $419,423.
Required:
1. Complete the first three rows of an
amortization table.
Date
Cash paid
interest expense
increase in
carrying value
carrying value
1/1/18
6/30/18
12/31/18
On January 1, 2018, Vandenplas issues $800,000 of 8% bonds, due in ten years, with interest...
On January 1, 2018, Vandenplas issues $800,000 of 8% bonds, due
in ten years, with interest payable semiannually on June 30 and
December 31 each year. Assuming the market interest rate on the
issue date is 9%, the bonds will issue at $747,968.
Record the bond issue on January 1, 2018, and the first four
semi-annual interest payments on June 30, 2018, December 31, 2018,
June 30, 2019, and December 31, 2019.
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