Bonds Sold between Interest Dates at a Discount, Bond Issue Proceeds, Retirement. Summa Manufac- turing Company issued $900,000 par value, 5%,5-year bonds dated January 1,2018. The bonds pay interest semiannually each June 30 and December 31. Summa issued the bonds on April 30, 2018, when the market rate of interest was 6%. Determine the bond issue price including acerued interest on April 30, 2018. b Prepare an amortization table for the bond issue using the effective interest rate method. c. Prepare the joumal entries required on the date of issue and on the first two interest dates in 2018, June 30, and December 31, d. The bonds are retired on June 30, 2020, for 5891,000. Prepare the journal entries at retirement.

Bonds Sold between Interest Dates at a Discount, Bond Issue Proceeds, Retirement. Summa Manufac- turing Company issued $900,000 par value, 5%,5-year bonds dated January 1,2018. The bonds pay interest semiannually each June 30 and December 31. Summa issued the bonds on April 30, 2018, when the market rate of interest was 6%. Determine the bond issue price including acerued interest on April 30, 2018. b Prepare an amortization table for the bond issue using the effective interest rate method. c. Prepare the joumal entries required on the date of issue and on the first two interest dates in 2018, June 30, and December 31, d. The bonds are retired on June 30, 2020, for 5891,000. Prepare the journal entries at retirement.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

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

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

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 5P: Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and...

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