Required InformationExercise 10-7 (Algo) Straight-Line: Amortization table and bond interest expense LO P2[The following Information applies to the questions displayed below.]Duval Company Issues four-year bonds with a $118,000 par value on January 1, 2021, at a price of $113,864. The annualcontract rate is 6%, and Interest is paid semiannually on June 30 and December 31.Exercise 10-7 (Algo) Part 11. Prepare a straight-line amortization table for these bonds.Note: Round your answers to the nearest dollar amount.SemiannualPeriod-EndUnamortizedDiscountCarryingValue1/01/20216/30/202112/31/20216/30/202212/31/20226/30/202312/31/20236/30/202412/31/2024

Step 1:Computation of the discount on bonds payable on the date of issuance of bonds:Discount on…

Answered: Required Information Exercise 10-7…

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 93PSA

See similar textbooks

Similar questions

Cornerstone Exercise Debt Issued at a Premium (Straight Line) Refer to the information for Ironman Steel above. Required: Prepare the amortization table for Ironman Steels bonds(Note: Round to the nearest dollar.) Use the following information for Cornerstone Exercises 9-31 and 9-32: Sicily Corporation issued $300,000 in 5% bonds (payable on December 31, 2029) on January 1, 2020, for $257,363. Interest is paid on June 30 and December 31. The market rate of interest is 7%.
Exercise Bonds with Annual Interest Payments Kiwi Corporation issued at par $350,000, 9% bonds on January 1, 2020. Interest is paid annually on December 31. The principal and the final interest payment are due on December 31, 2021. Required: Prepare the entry to recognize the issuance of the bonds. Prepare the journal entry for December 31, 2020. Prepare the journal entry to record repayment of the principal on December 31, 2021. CONCEPTUAL CONNECTIONHow would the interest expense for 2020 change if the bonds had been issued at a premium?
Exercise 10-7 (Algo) Straight-Line: Amortization table and bond interest expense LO P2 [The following information applies to the questions displayed below. Duval Company issues four-year bonds with a $110,000 par value on January 1, 2021, at a price of $105,895. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31, Exercise 10-7 (Algo) Part 1 1. Prepare a straight-line amortization table for these bonds Note: Round your answers to the nearest dollar amount. Semiannual Period-End 1/01/2021 6/30/2021 12/31/2021 6/30/2022 12/31/2022 6/30/2023 12/31/2023 6/30/2024 12/31/2024 Unamortized Discount Carrying Value
Question Related data of John-j Company: Face amount P2,550,000 Nominal rate 12% Effective rate 14% Date of issue January 1, 2021 Annual payment every December 31 P850,000 (Principal and interest) Interest is payable annually December 31 The entity used 3 decimal places for the PVF. Required: What is the present value of the bonds payable on January 1, 2021?
Problem 4: DONNER Company issued 3-year, 12% bonds with face amount of P4,000,000. Interest is payable semi- annually on April 1 and October 1. The bonds were issued on April 1, 2021 for P4,203,028 which represents an effective interest cost of 10% per year. ( Requirements: G. Prepare an amortization table using the effective interest method. H. Prepare journal entries for 2021. I. Compute or provide the answers for the following: 19. How much is the interest paid for the year ended, December 31, 2021? 20. How much is the interest expense for the year ended, December 31, 2021? 21. What is the carrying amount of the bonds on December 31, 2021?
Required information Exercise 9-18 (Algo) Record bonds issued at a premium and related annual interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $530,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year.Assuming the market interest rate on the issue date is 5%, the bonds will issue at $596,050. Exercise 9-18 (Algo) Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Hint: Use Illustration 9–7, except the dates for the first three rows will be 1/1/2024, 12/31/2024, and 12/31/2025 since interest is payable annually rather than semiannually. Interest expense for the period ended December 31, 2024, is calculated as the carrying value of $596,050 times the market rate of 5%.) (Round your final answers to the nearest whole dollar.)
Required information Exercise 9-17 (Algo) Record bonds issued at a discount and related annual interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $450,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year.Assuming the market interest rate on the issue date is 7%, the bonds will issue at $402,327. Exercise 9-17 (Algo) Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Hint: Use Illustration 9–6, except the dates for the first three rows will be 1/1/2024, 12/31/2024, and 12/31/2025 since interest is payable annually rather than semiannually. Interest expense for the period ended December 31, 2024, is calculated as the carrying value of $402,327 times the market rate of 7%.) (Round your final answers to the nearest whole dollar.)
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 2 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid 0 Less amount borrowed Total bond interest expense $0
! Required information Problem 10-10AB (Algo) Effective Interest: Amortization of bond LO P5 [The following information applies to the questions displayed below.] Ike issues $90,000 of 11%, three-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. They are issued at $92,283 when the market rate is 10%. Problem 10-10AB (Algo) Part 2 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: Total repaid payments of Par value at maturity Less amount borrowed 0 Total bond interest expense $ 0
Related data of John-j Company: Face amount P2,550,000 Nominal rate 12% Effective rate 14% Date of issue January 1, 2021 Annual payment every December 31 P850,000 (Principal and interest) Interest is payable annually December 31 The entity used 3 decimal places for the PVF. Bonds mature on January 1, 2023 Required: What is the present value of the bonds payable on January 1, 2021?
Exercise 10-7 (Static) Straight-Line: Amortization table and bond interest expense LO P2 Skip to question [The following information applies to the questions displayed below.] Duval Company issues four-year bonds with a $100,000 par value on January 1, 2021, at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31. Exercise 10-7 (Static) Part 3 3. Prepare the journal entry for maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded).
Exercise 9-14 (Algo) Record bonds issued at a discount and related semiannual interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $560,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $500,204.

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Accounting: The Impact on Decision Make…

Accounting

ISBN:

9781305654174

Author:

Gary A. Porter, Curtis L. Norton

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Financial Accounting: The Impact on Decision Make…

Accounting

ISBN:

9781305654174

Author:

Gary A. Porter, Curtis L. Norton

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Financial & Managerial Accounting

Accounting

ISBN:

9781285866307

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS