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Homework - Chapter 14

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Exercise 14-1 Recording bond issuance and interest L.O. P1;On January 1, 2011, Kidman Enterprises issues bonds that have a $2,150,000 par value, mature in 20 years, and pay 6% interest semiannually on June 30 and December 31. The bonds are sold at par.;1.;How much interest will Kidman pay (in cash) to the bondholders every six months? (Do not round intermediate calculations. Omit the "$" sign in your response.);Semiannual cash interest payment $;2. Prepare journal entries for the following.;(a) The issuance of bonds on January 1, 2011. (Omit the "$" sign in your response.);Date General Journal Debit Credit;Jan. 1, 2011;(b);The first interest payment on June 30, 2011. (Do not round intermediate calculations. Omit the "$" sign in your response.);Date General Journal Debit Credit;June 30, 2011;(c);The second interest payment on December 31, 2011. (Do not round intermediate calculations. Omit the "$" sign in your response.);Date General Journal Debit Credit;Dec. 31, 2011;3. Prepare the journal entry for issuance of bonds assuming.;(a) The bonds are issued at 97. (Omit the "$" sign in your response.);Date General Journal Debit Credit;Jan. 1, 2011;(b) The bonds are issued at 103. (Omit the "$" sign in your response.);Date General Journal Debit Credit;Jan. 1, 2011;Exercise 14-6 Recording bond issuance and premium amortization L.O. P1, P3;Jobbs Company issues 8%, five-year bonds, on December 31, 2010, with a par value of $92,000 and semiannual interest payments.;Semiannual Period-End Unamortized Premium Carrying Value;(0) 12/31/2010 $ 7,951 $ 99,951;(1) 6/30/2011 7,156 99,156;(2) 12/31/2011 6,361 98,361;Use the above straight-line bond amortization table and prepare journal entries for the following.;(a);The issuance of bonds on December 31, 2010. (Omit the "$" sign in your response.);Date General Journal Debit Credit;Dec 31, 2010;(b);The first interest payment on June 30, 2011. (Omit the "$" sign in your response.);Date General Journal Debit Credit;Jun 30, 2011

 

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