On January 1, 2025, Waterway Industries Inc. issued a $109,000, 8% bond due in 10 years with interest payable each January 1 and July 1. The effective interest rate is 9%. Click here to view factor tables. (a) Your answer is partially correct. Determine the discount or premium on the bond. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Discount on the bond $ Prepare the journal entry for the bond issue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List debit entry before credit entry.) Account Titles Cash Bonds Payable Debit Credit

On January 1, 2025, Waterway Industries Inc. issued a $109,000, 8% bond due in 10 years with interest payable each January 1 and July 1. The effective interest rate is 9%. Click here to view factor tables. (a) Your answer is partially correct. Determine the discount or premium on the bond. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Discount on the bond $ Prepare the journal entry for the bond issue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List debit entry before credit entry.) Account Titles Cash Bonds Payable Debit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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Your answer is partially correct. Swifty Ltd. issued a $1,184,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Swifty followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.
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