Vikrambhai !Required information[The following information applies to the questions displayed below.]On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bondsmature at the end of four years. Olive uses the effective-interest amortization method. The partially completedamortization schedule below pertains to the bonds:DateCashInterestAmortizationBalance1/1/20x112/31/20x1$ 46,831$ 2,162$ 1,967$ 19546,63612/31/20x2???46,43312/31/20x3??212?12/31/20x4?1,941?46,0006. What is the coupon rate?Note: Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).Coupon rate%

Based on the information provided, the coupon rate of the bond is 4.7%.We can't directly calculate…

Answered: ! Required information [The following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date Cash Interest Amortization Balance 1/1/20x1 $ 52,833 12/31/20x1 $ 5,200 $ 5,019 $ 181 52,652 12/31/20x2 ? ? ? 12/31/20x3 ? ? 217 52,454 ? 12/31/20x4 ? 4,963 ? 52,000 Required: 1. Complete the amortization schedule. Note: Enter all your values in positive. Round your final answers to nearest whole dollar amount. Date 1/1/20x1 12/31/20x1 Cash Interest Amortization Balance $ 52,833 $ 5,200 $ 5,019 $ 181 $ 52,652 12/31/20x2 $ 52,454 12/31/20x3 $ 217 12/31/20x4 4,963 $ 52,000
On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,095,749 1 228,000 243,830 15,830 6,111,579 2 228,000 244,463 16,463 6,128,042 3 228,000 245,122 17,122 6,145,164 4 228,000 245,807 17,807 6,162,971 5 228,000 246,519 18,519 6,181,490 6 228,000 247,260 19,260 6,200,750 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 228,000 295,564 67,564 7,456,656 39 228,000 298,266 70,266 7,526,922 40 228,000 301,078 73,078 7,600,000 Required: What is the face amount of the bonds? What is the initial selling price of the bonds? What is the term to maturity in years? Interest is determined by what approach? What is the stated annual interest rate? What is the effective annual interest rate? What is the total cash interest paid over the term to maturity? What is the total effective interest…
[The following information applies to the questions displayed below.] Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. 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 Less amount borrowed Total bond interest expense
On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,286,574 1 370,000 377,194 7,194 6,293,768 2 370,000 377,626 7,626 6,301,394 3 370,000 378,084 8,084 6,309,478 4 370,000 378,569 8,569 6,318,047 5 370,000 379,083 9,083 6,327,130 6 370,000 379,628 9,628 6,336,758 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 370,000 432,132 62,132 7,264,327 39 370,000 435,860 65,860 7,330,187 40 370,000 439,813 69,813 7,400,000 Required: What is the face amount of the bonds? What is the initial selling price of the bonds? answer = $6,286,574 What is the term to maturity in years? answer = 20 years Interest is determined by what approach? answer = Effective interest rate What is the stated annual interest rate? What is the effective annual interest…
Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is payable annually on December 31. Metlock uses the straight-line method to amortize bond premium or discount. 1.Prepare the journal entry to record the issuance of the bonds. 2.Prepare the journal entry to record the payment of interest and the related amortization on july 1, 2021. 3.Prepare the journal entry to record the accrual of interest and the related amortization on December 31, 2021.
Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: "Pic" a. Were the bond B issued at a premium and/or discount? - Discount b. Journalize the issuance of bond B on April 1, 2021. c. What is the contract interest rate for the issue bond B? - 8% d. Interest of how much is paid how often for bond B issued? - 10,800 Quarterly e. What is the term of bond B issue? f. Show how bond B would appear on the balance sheet under non-current liabilities at July 31, 2029. g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2030. h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2030, at 97. Record the entries. - Record the interest paid on bonds. - Record the retired bonds.
January 1, 2024, Nurses Credit Union (NCU) issued 7%, 20-year bonds payable with face value of $1,100,000. These bonds pay interest on June 30 and December .The issue price of the bonds is 102. Journalize the following bond transactions: (Click the icon to view the bond transactions.) Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal ntry. Round your answers to the nearest whole dollar.) Paid semiannual interest and amortized premium. d. Journalize the retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Accounts and Explanation Credit Date 2043 Dec. 31 Debit |
Required information {The following information applies to the questions displayed below.] The Square Foot Grill, Incorporated issued $350,000 of 10-year, 7 percent bonds on July 1, Year 1, at 102. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization. equired . Prepare the journal entries to record issuing the bonds and any necessary journal entries for Year 1 and Year 2. Post the journal ntries to T-accounts. Prepare any necessary closing entries for Year 1.
On January 1, 2024, a company issues a $3, 500, 000, 10%, 5-year bonds that pays semiannual interest on July 1 and January 1. Assume the bonds were sold at: A. 92% B. 102% Instructions: For A and B journalize the issuance of the bonds. Journalize the first and second interest payment, using straight line amortization. Compute the bond's price (present value) assuming the following market interest: A. 12.5% B. 8.5%
1.) On January 1, 2024,Technicians Credit Union (TCU) issued 7%, 20-year bonds payable with face value of $1,100,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106. Journalize the following bond transactions: More info a. Issuance of the bonds on January 1, 2024. b. Payment of interest and amortization on June 30, 2024. c. Payment of interest and amortization on December 31, 2024. d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) Part 1 a. Journalize the issuance of the bonds on January 1, 2024. Date Accounts and Explanation Debit Credit 2024 Jan. 1 Cash Premium on…
On April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including accrued interest. The bonds are dated January 1, 20x1 and pay annual interest of 14% every December 31. The effective interest rate is 12%. Requirements: a. Compute for the interest expense in 20x1.
On January 1, Year 1, Price Company issued $190,000 of five-year, 6 percent bonds at 96 12. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet > 1 2 3 Record the entry for issuance of bonds. Note: Enter debits before credits. >

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