Christmas Anytime issues $810,000 of 7% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:
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- Cornerstone Exercise (Appendix 9A) Bond Issue Price On January 1, 2021, Callahan Auto issued $900,000 of 9%, 10-year bonds. Interest is payable semiannually on June 30 and December 31. Required: What is the issue price if the bonds are sold to yield 8%? (Note: Round to the nearest dollar.)Brief ExerciseBonds Issued at a Premium (Effective Interest) Refer to the information above for Haley Industries. Required: Prepare the journal entry for December 31, 2022 and 2023. Use the following information for Brief Exercises 9-55 and 9-58: Haley Industries issued $120,000 of 11% , 7-year bonds on January 1, 2020, with $5,842 pre- mium. Interest is paid annually on December 31. The market rate of interest is 10%.! Required information Problem 9-7B Calculate the issue price of a bond and prepare amortization schedules (LO9-5, 9-7) [The following information applies to the questions displayed below.] Christmas Anytime issues $830,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: Problem 9-7B Part 2 2. The market interest rate is 7% and the bonds issue at a discount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round your answers to nearest whole dollar.) Issue price Date $ Cash Paid 830,000 Interest Change in Expense Carrying Value 01/01/2021 06/30/2021 $ 29,050 $ 29,050 12/31/2021 29,050 Carrying Value
- Required information Problem 9-7B Calculate the issue price of a bond and prepare amortization schedules (LO9-5, 9-7) [The following information applies to the questions displayed below.] Christmas Anytime issues $720,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: Problem 9-7B Part 2 2. The market interest rate is 7% and the bonds issue at a discount. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round your answers to nearest whole dollar.) Issue price Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2021 06/30/2021 12/31/2021Required information Problem 9-7B Calculate the issue price of a bond and prepare amortization schedules (LO9-5, 9-7) [The following information applies to the questions displayed below.] Christmas Anytime issues $720,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: Problem 9-7B Part 1 Required: 1. The market interest rate is 6% and the bonds issue at face amount. (FV of $1. PV of $1. FVA of $1. and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round your answers to nearest whole dollar.) Issue price Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2021 06/30/2021 12/31/2021Part 3: Bonds On January 1, 2022 JK Exercise Gear issues $600,000 of 5% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. For each scenario, calculate the issue price of a bond, complete the first three rows of an amortization schedule and record the journal entries for the first three transactions. Scenario A: The market interest rate is 7%. 1. The bond is recorded at a 2. Calculate the issue price of the bond: 3. Complete the bond amortization schedule using your Bond Template in Excel. 4. Use your bond amortization schedule and record the journal entry for the issuance of the bond on January 1. Account Debit Account 5. Use your bond amortization schedule and record the journal entry for the first cash interest payment on June 30. Credit Debit Credit
- Legacy issues $610,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $579,203 when the market rate is 8%. Problem 10-4A Part 4 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet 1 2 > Record the interest payment and amortization on June 30. Note: Enter debits before credits. Date General Journal Debit Credit June 30 Bond interest expense Discount on bonds payable CashOn January 1, 2024, Christmas Anytime issues $850,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assume that the market interest rate is 7% and the bonds issue at a discount.2a. Calculate the issue price of a bond.2b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1, FVA of $1, and PVA of $1)Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $648,412 when the market rate is 6%. Problem 14-4A Part 4 4. Prepare the journal entries to record the first two interest payments. Record the interest payment and amortization on June 30. Record the interest payment and amortization on December 31.
- journal entry jan 1, 2024 june 30, 2024 dec 31, 2024 On January 1, 2024, Splash City issues $420,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8 %, the bonds will issue at $391,462. Exercise 9-11 (Algo) Part 2 2. Record the bond issue on January 1, 2024, and the first two semiannual Interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your Intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheetAmortization Schedule - Bonds Wang Corporation issued $100,000 5 year bonds January 1, 2020. The bonds pay interest annually and have a stated rate of 6%. The market on day of issue was 6%. Required 1 Determine the issue price (PV) of the bond. N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) 2 Prepare the bond amortization schedule using the effective interest method. Cash Interest Interest Year Carrying Value Page 1 Payment Expense Jan 1, 2020 Dec 31, 2020 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 3 Record the necessary journal entry at date of issue and first interest payment. General Journal DR CR 4 Analyze the effect on the financial statements of the journal entry at date of issue (a) and the first interest payment (b). Assets = Liabilities + Equity Revenues - Expenses = Net IncomeOn January 1, 2024, Christmas Anytime issues $680, 000 of 5% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assume that the market interest rate is 6% and the bonds issue at a discount. 2a. Calculate the issue price of a bond. 2b. Complete the first three rows of anamortization schedule