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ACCT - Exercise 14-10,14-14, 14-15

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Question;Exercise 14-10 Computing bond interest and price, recording bond issuance L.O. P3Metro Company issues bonds with a par value of $72,000 on their stated issue date. The bonds mature in ten years and pay 11% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 10%. (Use Table B.1, Table B.3)1.What is the amount of each semiannual interest payment for these bonds? (Omit the "$" sign in your response.)Semiannual interest payment $2. How many semiannual interest payments will be made on these bonds over their life?Number of payments3.Use the interest rates given to determine whether the bonds are issued at par, at a discount, or at a premium.at parat a discountat a premium4.Compute the price of the bonds as of their issue date. (Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)Issue price of bonds $5.Prepare the journal entry to record the bonds? issuance.(Round "PV Factors" to 4 decimal places. Round intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)General Journal Debit CreditExercise 14-14 Installment note with equal total payments L.O. C1, P5On January 1, 2011, Randa borrows $26,000 cash by signing a four-year, 8% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2011 through 2014. (Use Table B.3)1.Compute the amount of each of the four equal total payments. (Round "PV Factor" to 4 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)Amount of each payment $2.Prepare an amortization table for this installment note. (Please calculate interest expense in the final period as the amount of cash minus the amount of the Beginning balance and make sure that the ending balance in the last period equals to "0". Leave no cells blank - be certain to enter "0" wherever required. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)Payments(A) (B) (C) (D) (E)PeriodEndingDate BeginningBalance Debit InterestExpense Debit NotesPayable CreditCash EndingBalance2011 $ $ $ $ $201220132014Total $ $ $Exercise 14-15 Installment note entries L.O. P5On January 1, 2011, Randa borrows $15,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2011 through 2014. (Use Table B.3)Prepare the journal entries for Randa to record the loan on January 1, 2011, and the four payments from December 31, 2011, through December 31, 2014. (Round "PV Factor" to 4 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.)Date General Journal Debit CreditJan. 1, 2011Dec. 31, 2011Dec. 31, 2012Dec. 31, 2013Dec. 31, 2014

 

Paper#43248 | Written in 18-Jul-2015

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