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Issue of Bonds Payable_Discount_Premium

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Question;Heathrow;issues $1,100,000 of 9%, 15-year bonds dated January 1, 2011, that pay interest;semiannually on June 30 and December 31. The bonds are issued at a price of;$950,524.;Required;1.;Prepare;the January 1, 2011, journal entry to record the bonds? issuance. (Omit the;$" sign in your response.);Date;General Journal Debit Credit;Jan. 1;2(a);For;each semiannual period, compute the cash payment. (Omit the "$" sign;in your response.);Cash;payment $;2(b);For;each semiannual period, compute the the straight-line discount amortization.;(Round your answer to the nearest dollar amount. Omit the "$" sign in;your response.);Amount;of discount amortization $;2(c);For;each semiannual period, compute the bond interest expense. (Round your;intermediate calculations and final answer to the nearest dollar amount. Omit;the "$" sign in your response.);Bond;interest expense $;3.;Determine;the total bond interest expense to be recognized over the bonds' life. (Omit;the "$" sign in your response.);Total;bond interest expense $;4.;Prepare;the first two years of an amortization table using the straight-line method.;(Round your intermediate calculations and final answers to the nearest dollar;amount. Omit the "$" sign in your response. Omit the "$;sign in your response.);Semiannual;Period-End Unamortized Discount Carrying;Value;1/01/2011;$ $;6/30/2011;12/31/2011;6/30/2012;12/31/2012;5.;Prepare;the journal entries to record the first two interest payments. (Round your;intermediate calculations and final answers to the nearest dollar amount. Omit;the "$" sign in your response.);Date;General Journal Debit Credit;June;30;Dec.;31;Heathrow;issues $1,000,000 of 6%, 15-year bonds dated January 1, 2011, that pay interest;semiannually on June 30 and December 31. The bonds are issued at a price of;$1,223,995.;Required;1.;Prepare;the January 1, 2011, journal entry to record the bonds? issuance. (Omit the;$" sign in your response.);Date;General Journal Debit Credit;Jan. 1;2(a);For;each semiannual period, compute the cash payment. (Omit the "$" sign;in your response.);Cash;payment $;2(b);For;each semiannual period, compute the the straight-line premium amortization.;(Round your answer to the nearest dollar amount. Omit the "$" sign in;your response.);Amount;of premium amortized $;2(c);For;each semiannual period, compute the the bond interest expense. (Omit the;$" sign in your response.);Bond;interest expense $;3.;Determine;the total bond interest expense to be recognized over the bonds' life. (Omit;the "$" sign in your response.);Total;bond interest expense $;4.;Prepare;the first two years of an amortization table using the straight-line method.;(Omit the "$" sign in your response.);Semiannual;Period-End;Unamortized Premium Carrying;Value;1/01/2011;$ $;6/30/2011;12/31/2011;6/30/2012;12/31/2012;5.;Prepare;the journal entries to record the first two interest payments. (Omit the;$" sign in your response.);Date;General Journal Debit Credit;June;30;Dec.;31;Patton;issues $670,000 of 6.0%, four-year bonds dated January 1, 2011, that pay;interest semiannually on June 30 and December 31. They are issued at $624,896;and their market rate is 8% at the issue date.;references;10.value;10.00;points;Problem;10-6A Part 1;1.;Prepare;the January 1, 2011, journal entry to record the bonds' issuance. (Omit the;$" sign in your response.);Date;General Journal Debit Credit;Jan. 1;11.value;10.00;points;Problem;10-6A Part 2;2.;Determine;the total bond interest expense to be recognized over the bonds' life. (Omit;the "$" sign in your response.);Total;bond interest expense $;check;my workeBook Links (2)references;12.value;10.00;points;Problem;10-6A Part 3;3.;Prepare;a straight-line amortization table for the bonds' first two years. (Make sure;that the unamortized discount is adjusted to "0" and the carrying;value equals to face value of the bond in the last period. Round your;intermediate calculations and final answers to the nearest dollar amount. Omit;the "$" sign in your response.);Semiannual;Interest;Period-End Unamortized;Discount;Carrying;Value;1/01/2011;$ $;6/30/2011;12/31/2011;6/30/2012;12/31/2012;check;my workeBook Links (2)references;13.value;10.00;points;Problem;10-6A Part 4;4.;Prepare;the journal entries to record the first two interest payments. (Round your;intermediate calculations and final answers to the nearest dollar amount. Omit;the "$" sign in your response.);Date;General Journal Debit Credit;June;30;Dec.;31

 

Paper#37224 | Written in 18-Jul-2015

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