Question
In: Accounting
Hillside issues $1,300,000 of 7%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $1,300,000 of 7%, 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 $1,123,346.
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 straight-line discount
amortization.
2(c) For each semiannual period, complete the
table below to calculate the bond interest expense.
3. Complete the below table to calculate the total
bond interest expense to be recognized over the bonds' life.
4. Prepare the first two years of an amortization
table using the straight-line method.
5. Prepare the journal entries to record the first
two interest payments.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Hillside issues $1,800,000 of 7%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $1,800,000 of 7%, 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 $1,555,401.
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 straight-line discount
amortization.
2(c) For each semiannual period, complete the...
Hillside issues $1,800,000 of 7%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $1,800,000 of 7%, 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 $2,203,194.
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 straight-line premium
amortization.
2(c) For each semiannual period, complete the...
Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $4,000,000 of 6%, 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 $3,456,448.
Required
1. Prepare January 1, 2017, journal entry to record the bonds’
issuance.
2. For each semiannual period, compute (a) the cash payment, (b)
the straight-line discount amortization, and (c) the bond interest
expense.
3. Determine the total bond interest expense to be recognized
over the bonds’ life.
4. Prepare...
Hillside issues $1,600,000 of 9%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $1,600,000 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 $1,958,394.
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 straight-line premium
amortization.
2(c) For each semiannual period, complete the...
Hillside issues $1,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $1,000,000 of 6%, 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 $1,223,995.
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 straight-line premium
amortization.
2(c) For each semiannual period, complete the...
Hillside issues $2,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $2,000,000 of 6%, 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 $1,728,224.
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 straight-line discount
amortization.
2(c) For each semiannual period, complete the...
Hillside issues $1,200,000 of 8%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $1,200,000 of 8%, 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 $1,468,794.
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 straight-line premium
amortization.
2(c) For each semiannual period, complete the...
Hillside issues $1,200,000 of 8%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $1,200,000 of 8%, 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 $1,468,794.
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 straight-line premium
amortization.
2(c) For each semiannual period, complete the...
Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $4,000,000 of 6%, 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 $4,895,980.
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 straight-line premium
amortization.
2(c) For each semiannual period, complete
the...
Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2017, that pay interest semiannually on...
Hillside issues $1,400,000 of 5%, 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 $1,713,594. 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 straight-line premium
amortization. 2(c) For each semiannual period, complete the...
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