Question
In: Accounting
On January 1 of Year 1, Congo Express Airways issued $3,900,000 of 7%, bonds that pay...
On January 1 of Year 1, Congo Express Airways issued $3,900,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,492,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $12,000 every 6 months. The life of these bonds is: a. 34 years. b. 17 years. c. 11 years. d. 33 years. e. 29 years
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1 of Year 1, Congo Express Airways issued $3,400,000 of 7% bonds that pay...
On January 1 of Year 1, Congo Express Airways issued $3,400,000
of 7% bonds that pay interest semiannually on January 1 and July 1.
The bond issue price is $3,100,000 and the market rate of interest
for similar bonds is 8%. The bond premium or discount is being
amortized at a rate of $10,000 every six months. After accruing
interest at year end, the company's December 31, Year 1 balance
sheet should reflect total liabilities associated with the bond
issue...
On January 1 of Year 1, Congo Express Airways issued $3,400,000 of 7% bonds that pay...
On January 1 of Year 1, Congo Express Airways issued $3,400,000
of 7% bonds that pay interest semiannually on January 1 and July 1.
The bond issue price is $3,100,000 and the market rate of interest
for similar bonds is 8%. The bond premium or discount is being
amortized at a rate of $10,000 every six months. After accruing
interest at year end, the company's December 31, Year 1 balance
sheet should reflect total liabilities associated with the bond
issue...
3a. On January 1 of Year 1, Congo Express Airways issued $4,800,000 of 7%, bonds that...
3a. On January 1 of Year 1, Congo Express Airways issued
$4,800,000 of 7%, bonds that pay interest semiannually on January 1
and July 1. The bond issue price is $4,404,000 and the market rate
of interest for similar bonds is 8%. The bond premium or discount
is being amortized using the straight-line method at a rate of
$11,000 every 6 months. The life of these bonds is:
b. On January 1, a company issues bonds dated January 1 with...
4. On January 1 of Year 1, Congo Express Airways issued $4,600,000 of 7%, bonds that...
4. On January 1 of Year 1, Congo Express Airways issued
$4,600,000 of 7%, bonds that pay interest semiannually on January 1
and July 1. The bond issue price is $4,280,000 and the market rate
of interest for similar bonds is 9%. The bond premium or discount
is being amortized using the straight-line method at a rate of
$10,000 every 6 months. The life of these bonds is:
9. Caitlin, Chris, and Molly are partners and share income and
losses...
On January 1, 2011, Davis Corporation issued $3,900,000 of 7% bonds at 101. Interest is paid...
On January 1, 2011, Davis Corporation issued $3,900,000 of 7%
bonds at 101. Interest is paid annually on December 31 of each
year. The bonds mature on December 31, 2027, and the company uses
the straight-line method of amortization. On January 2, 2019, Davis
reacquired the bonds and recognized a loss of $88,000.
1. Calculate the reacquisition price of the bonds on
January 2, 2019. (102.7564103 is wrong)
2. Prepare the journal entry to record the reacquisition
of Davis’s bonds...
MC Qu. 111 On January 1 of Year... On January 1 of Year 1, Congo Express...
MC Qu. 111 On January 1 of Year...
On January 1 of Year 1, Congo Express Airways issued $2,700,000
of 6% bonds that pay interest semiannually on January 1 and July 1.
The bond issue price is $2,450,000 and the market rate of interest
for similar bonds is 7%. The bond premium or discount is being
amortized at a rate of $8,333 every six months. After accruing
interest at year end, the company's December 31, Year 1 balance
sheet should...
On January 1 of Year 1, Lily Company issued bonds with a coupon rate of 7%...
On January 1 of Year 1, Lily Company issued bonds with a coupon
rate of 7% and a face amount of $3,000. The bond interest payments
are made twice each year on June 30 and on December 31. The bonds
mature in 12 years. The market interest rate for bonds with the
same degree of riskiness is 10% compounded semi-annually. On
January 1 of Year 1,Investor Company purchased all of the Lily
Company bonds when they were issued. Investor Company...
Goal Corporation issued $900,000 face value 7 percent 5-year bonds on 1/1/2021. The bonds pay interest...
Goal Corporation issued $900,000 face value 7
percent 5-year bonds on 1/1/2021. The bonds pay interest
semiannually and were sold to yield 8 percent. The bonds were
purchased by Shot Company.
a. What is the issuance price of the bond?
___________________
b. Prepare the entry that Goal will make to
record the issuance of the bonds.
c. Prepare the entry that Goal will make to
record the first interest payment.
d. Prepare the entry that Goal will make to
record...
cullumber Corporation issued $3.06 million of 7-year, 1% bonds dated January 1, 2017, for $2,676,173. The...
cullumber Corporation issued $3.06 million of 7-year, 1% bonds
dated January 1, 2017, for $2,676,173. The market interest rate
when the bonds were issued was 3%. Interest is payable
semi-annually on January 1 and July 1. Cullumber has a December 31
year end.
Prepare an amortization schedule for the first three interest
payments. (Round answers to 0 decimal places, e.g.
5,276.)
CULLUMBER
CORPORATION
Bond Amortization Table
Effective Interest Method—Semi-annual Interest Payments
1% Bonds Issued at market rate of 3%
Date...
Sandhill Corporation issued $2.76 million of 7-year, 1% bonds dated January 1, 2021, for $2,413,803. The...
Sandhill Corporation issued $2.76 million of 7-year, 1% bonds
dated January 1, 2021, for $2,413,803. The market interest rate
when the bonds were issued was 3%. Interest is payable
semi-annually on January 1 and July 1. Sandhill has a December 31
year end.
Prepare an amortization schedule for the first three interest
payments. (Round answers to 0 decimal places, e.g.
5,276.)
SANDHILL
CORPORATION
Bond Amortization Table
Effective Interest Method—Semi-Annual Interest Payments
1% Bonds Issued at market rate of 3%
Date...
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