A company issued 8%, 5-year bonds with a par value of $2,090,000, on January 1. Interest is to be paid semiannually each June and December 31. The bonds were sold at $2,243,290 based on an annual market rate of 6%. The company uses the effective in method of amortization. 1. Prepare an amortization table for the first two semiannual payment periods using the format shown below. 2. Prepare the journal entry to record the first semiannual interest payment. Enter answers in each of the following tabs. Required 1 Required 2 Prepare an amortization table for the first two semiannual payment periods using the following format. Note: Round your answers to 2 decimal places. Semiannual Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value 06/30 12/31

A company issued 8%, 5-year bonds with a par value of $2,090,000, on January 1. Interest is to be paid semiannually each June and December 31. The bonds were sold at $2,243,290 based on an annual market rate of 6%. The company uses the effective in method of amortization. 1. Prepare an amortization table for the first two semiannual payment periods using the format shown below. 2. Prepare the journal entry to record the first semiannual interest payment. Enter answers in each of the following tabs. Required 1 Required 2 Prepare an amortization table for the first two semiannual payment periods using the following format. Note: Round your answers to 2 decimal places. Semiannual Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value 06/30 12/31

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
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A company issued 10%, 5-year bonds with a par value of $2,190,000, on January 1. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,333,290 based on an annual market rate of 8%. The company uses the effective interest method of amortization. 1. Prepare an amortization table for the first two semiannual payment periods using the format shown below. 2. Prepare the journal entry to record the first semiannual interest payment. Enter answers in each of the following tabs. Required 1 Required 2 Prepare an amortization table for the first two semiannual payment periods using the following format. Note: Round your answers to 2 decimal places. Semiannual Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value 06/30 12/31
On January 1, a company issues bonds dated January 1 with a par value of $560,000. The bonds mature in 5 years. The contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The market rate is 9% and the bonds are sold for $537,828. The journal entry to record the second interest payment using the effective interest method of amortization is:
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