Please help me 2018) for $1,265,000.P14-4. Bonds Sold between Interest Dates at a Discount, Bond Issue Proceeds, Retirement. Summa Manufactur-Foing Company issued $900,000 par value, 5%, five-year bonds dated January 1, 2016. The bonds pay interestsemiannually each June 30 and December 31. Summa issued the bonds on April 30, 2016, when the marketrate of interest was 6%. Bond issue costs were $59,000.466fent of the bonds at the end of the third year (DecemberMaucha. Determine the bond issue price including accrued interest on April 30, 2016.b. Prepare an amortization table for the bond issue using the effective interest rate method.c.nolaPrepare the journal entries required on the date of issue and on the first two interest dates in 2016: June 30and December 31.d. The bonds are retired on June 30, 2018, for $891,000. Prepare the journal entry at retirement.mu

Bond issue price is the sum of the, present value of the bond repayment that is due at its maturity…

Bonds Sold between Interest Dates at a Discount, Bond Issue Proceeds, Retirement. Summa Manufactur- ing Company issued $900,000 par value, 5%, five-year bonds dated January 1, 2016. The bonds pay interest semiannually each June 30 and December 31. Summa issued the bonds on April 30, 2016, when the market rate of interest was 6%. Bond issue costs were $59,000. a. Determine the bond issue price including accrued interest on April 30, 2016. b. Prepare an amortization table for the bond issue using the effective interest rate method. c. Prepare the journal entries required on the date of issue and on the first two interest dates in 2016: June 30 and December 31. d. The bonds are retired on June 30, 2018, for $891,000. Prepare the journal entry at retirement.

Bonds Sold between Interest Dates at a Discount, Bond Issue Proceeds, Retirement. Summa Manufactur- ing Company issued $900,000 par value, 5%, five-year bonds dated January 1, 2016. The bonds pay interest semiannually each June 30 and December 31. Summa issued the bonds on April 30, 2016, when the market rate of interest was 6%. Bond issue costs were $59,000. a. Determine the bond issue price including accrued interest on April 30, 2016. b. Prepare an amortization table for the bond issue using the effective interest rate method. c. Prepare the journal entries required on the date of issue and on the first two interest dates in 2016: June 30 and December 31. d. The bonds are retired on June 30, 2018, for $891,000. Prepare the journal entry at retirement.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

See similar textbooks

Similar questions

Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000
Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discount
Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discount