Problem: Module 3 Textbook Problem 6 Learning Objectives: Required For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round intermediate calculations.) a. b. • 3-6 Using the straight-line method show how bonds issued at a discount affect financial statements • 3-7 Using the straight-line method show how bonds issued at a premium affect financial statements C. d. Gray Co. issued $66,000 of 6 percent bonds at 102 1/2 Bush, Inc. issued $81,000 of 10-year, 6 percent bonds at 98 1/2. Oak, Inc. issued $188,000 of 20-year, 6 percent bonds at 102. Willow Co. issued $157,000 of 15-year, 7 percent bonds at 97. $ 67,650 Premium Discount Premium 1,570 Discount $

Problem: Module 3 Textbook Problem 6 Learning Objectives: Required For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round intermediate calculations.) a. b. • 3-6 Using the straight-line method show how bonds issued at a discount affect financial statements • 3-7 Using the straight-line method show how bonds issued at a premium affect financial statements C. d. Gray Co. issued $66,000 of 6 percent bonds at 102 1/2 Bush, Inc. issued $81,000 of 10-year, 6 percent bonds at 98 1/2. Oak, Inc. issued $188,000 of 20-year, 6 percent bonds at 102. Willow Co. issued $157,000 of 15-year, 7 percent bonds at 97. $ 67,650 Premium Discount Premium 1,570 Discount $

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 31CE

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QUESTION 10 A $545,000 bond issue on which there is an unamortized discount of $44.000 is redeemed ior $474,000. Journalize the redemption of the bonds using the straight-line method and the chart of accounts below. Gain on Redemption of Bonds Interest Expense Interest Payable Interest Revenue Bonds Payable Cash Discount on Bonds Payable Loss on Redemption of Bonds Premiun on Bonds Payable Enter your answers into the table below. Key the account names carefully (exactly as shown above) and follow formatting instructions below. DO NOT USE A DECIMAL WITH ZEROES FOR WHOLE DOLLAR AMOUNTS AND USE COMMAS APPROPRIATELY. WHEN THE DEBIT/CREDIT DOES NOT REQUIRE AN ENTRY, LEAVE IT BLANK. Account Debit Credit THIS QUESTION WILL ALSO BE CHECKED MANUALLY (to make adjustments for typos). Click Save and Submit to saue and submit Clil Saue 47l aacars to na
Problem 3- Bonds Payable Harrisburg Light and Power Company Please review the assumptions for three alternative bond transactions and answer Requirements A through D below: REQ A State the pricina basis for the Bond issue ea. ("Discount". "Premium" or "Par") A B C REQ B A REQ C For Each, indicate whether the balance sheet value of the bond liability will "increase", "decrease" or "remain constant" over the life of the bond A B C REQ D For Each bond issuance indicate whether the interest expense recognized each period will "increase" "decrease" or "remain constant" over the life of the bond A B C 26 27 28 29 30 31 32 33 34 35 36 37 Bond Issuance 12-31-x1 Price A с Price B C ANSWER BOX $ $ $ Face Value 300,000 400,000 500,000 PV Interest PV Principal PV Total PV Interest PV Principal PV Total PV Interest PV Principal Stated Coupon Interest Rate PV Total 6% 8% 6% Effective Market Interest Rate Insert All Computations for the Amortization Data using Excel Data tools or Tables here: A…
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W On January 1, 2023, Liu Corporation paid $262,123 to acquire bonds of Singh Investment Corp with a par value of $260,000. The annual contract rate on the bonds is 6.0% and interest is paid semiannually on June 30 and December 31. The bonds mature after three years. The market rate of interest was 5.7%. Liu Corporation intends to hold the bonds until maturity. Required: 1. Prepare an amortization schedule for the investment showing only 2023. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Enter all the amounts as positive values.) Period Ending Jan. 1/23 June 30/23 Dec. 31/23 Cash Interest Received View transaction list
[The following information applies to the questions displayed below.] Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments.
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Question 12 Gulf Company issued bonds with a par value of $500,000 for cash of $530,000. What is the account's name and type representing the difference between par value and issue price? OA A bond premium; a contra asset account O B. A bond discount; a contra equity account. OCA bond premium; an adjunct account. O D. A bond discount; a contra liability account.