Charger Battery issued $100,000 of 11%, seven-year bonds on December 31, 2022, for $104,868. Interest is paid annually on December 31. The market rate of interest is 10%. Required: Prepare the amortization table using the effective interest rate method. For those boxes in which no entry is required, leave the box blank. If the amount is zero, enter "0". If required, round your answers to the nearest whole dollar.

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Date (A) Interest payment(B)7%* face value  interest expenses(C) carrying value*8% Amortisation…

Q: 21. On January 01, 2019, SUNOD NA ANG LEASES LTD. issued 3- year bonds with face value of P5,000,000…

A: Given: Face value = P5,000,000 Price = 99% Nominal rate = 10% Issue cost = P150,000

Q: Blue Company issued $ 396,000 of  10%,  20-year bonds on January 1, 2020, at  102. Interest is…

A: Semiannual interest payment= face value of bonds x rate of interest x no. of months/12 = $396,000 x…

Q: Super Splash issues $870,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

Q: On January 1, 2021, a company issues 3-year bonds with a face value of $50,000 and a stated interest…

A: Interest expense = Issue price of bond × Market interest rate Cash paid = face value×stated interest…

Q: (b) Wildhorse Inc. issued $570,000 of 9%, 10-year bonds on June 30, 2020, for $471,929. This price…

A: Bonds: Bonds are the debt instruments issued by the owner by the borrower company to its lenders.…

Q: $60,000, 5-year bonds, with a 10% stated rate of interest are issued at $64,867 on January 1, 2021.…

A: When Bonds are Issued at Premium or Discount then on each Interest Payment date these premium and…

Q: On January I, Bramble Corp. issued 10 year, S6,000,000,9% bonds for $6,842,830. The market rate of…

A: Introduction: A loan that amortizes is one with monthly payments that go toward the principle.…

Q: On 1/1/20, Bond Co issued 6,000 units of its $1,000 10-year 11% bonds. The bonds pay interest…

A: Interest payments are calculated on the issue price of the bond which is calculated as shown:…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. Explain the amount of the premium on these bonds at issuance.

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…

A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

Q: On January 1, 2021, Toit Company issued a 10-year 9% bonds payable of P10,000,000 for a market rate…

A: Present value of bond:-

Q: On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The…

A: Net issue price = (Face value of bonds x issue price/100) - Bonds issue cost = (₱5,000,000 x…

Q: On January 1, 2021, MACADAMIA Company issued 5-year bonds with a face value of ₱5,000,000 at 110.…

A: Amount received from the bond issuance = (Face value of bonds x issue price/100)  - bond issue cost…

Q: On January 1, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. Thebond interest is…

A: The correct option is option “d”.

Q: Cookie Dough Corporation issued $850,000 in 9%, 10-year bonds (payable on December 31, 2030) on…

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to…

Q: On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the…

A: Interest expense on December 31, 2021 = present value of the bonds x yield rate x no. of the months…

Q: Sheffield Company sells  10% bonds having a maturity value of $ 1,300,000 for $ 1,206,280. The bonds…

A: Annual interest payment = face value of bonds x rate of interest x no. of months/12 = 1,300,000 x…

Q: On December 31, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on December 31, 2025. Interest…

A: Maturity period = December 31, 2020 to December 31, 2025 = 5 years Semi annual period = 5 years x 2…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. What is the amount of the premium on these bonds at issuance? When a company issues bonds at the…

Q: On January 1, 2021, a company issued 10-year, $3,000,000, 6% bonds with semiannual interest…

A: a.

Q: On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of…

A: Prepare the amortization table for Ironman Steel\'s bonds:

Q: On January 1, 2020, Laudon Corporation issued $5,000,000 of 10% bonds at 102 due December 31, 2029.…

A: The bond issued at 102 means the bond has issued at premium & issue price is 102% of face value.…

Q: On January 1, 2021, Solo Inc. issued 1,000 of its 8%, $1,000 bonds at 98. Interest is payable…

A: In this question we have been asked to calculate the carrying value of the bond, for which we have…

Q: On July 1, 2018, McNamara Company issued for $598,964, 10%, 20-year bonds with a face value of…

A: Premium on Bonds = Issue price - Face value                                  = $598964-500000…

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-year bonds. The bonds pay interest…

A: Prepare journal entries as follows: Result:

Q: Mcdonaugh Corporation issued $250,000 of 5%, 10-year bonds payable onJanuary 1, 2019. The market…

A: Bonds Payable: Bonds payable is a liability account that contains the amount owed to bondholders by…

Q: March 1, 2021, a company issued a four-year, P3,000,000 face value, 11% term bonds for P3,197,877.…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The…

A: Amount received from the bond issuance = (Face value of bonds x issue price/100)  - bond issue cost…

Q: On June 30, 2024, LN Bean issued $25 million of its 8% bonds for $23 million. The bonds were priced…

A: Interest expense is the amount of charge which is paid by the person who uses the funds. In this…

Q: 1 On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A: Valuation Bond

Q: On January 1, Bramble Corp. issued 10 year, S6,000,000, 9% bonds for $6,842,830. The market rate of…

A: Introduction: An amortizing loan is one with monthly payments that go toward the principle. Payment…

Q: 18. On January 1, 2020, Puckett Co. issued $50,000 of 8%, ten-year bonds at 98. Issuance costs…

A: In this question, loss on redemption shall be  Loss on bond retainment =Redemption price of bond…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $880,000. The bonds' annual…

A: Answer 1:

Q: On January 1, 2020, Ivanhoe Company issued $ 2,330,000, 9%, 10-year bonds at $ 2,486,345. This price…

A: Bonds are a form of loan or liability for the business, on which regular interest payments needs to…

Q: Question 8 : On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year…

A: The bonds are issued at premium when market rate is higher the coupon rate of bonds.

Q: MAUNLAD Co., issued 12%, P1,000,000, 3-year bonds for P1,103,084 amount on January 1, 2021.…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: PANGILINAN Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable…

A: Interest expense on October 1, 2021 = issue value of bonds x effective rate of interest x no. of…

Q: n January 1, 2022, Cheyenne Company issued $1,400,000 face value, 7%, 10-year bonds at $1,503,035.…

A: 1  on the issuance of a bond on January 1,2022 Particulars Debit Credit Bank  a/c…

Q: RNB Corporation issued ten thousand P1,000 bonds on January 1, 2018. They have a ten-year term and…

A: Bonds are a form of loan or debt issued by the business, on which regular interest payments needs to…

Q: Shaq Corporation issued $10,000 of 20-year bonds on January 1, 2024. The bonds pay interest…

A: Lets understand the basics. Effetive interest rate is a rate which company actually paying interest.…

Q: 13

A: An asset that is worth less than its book or net carrying value is considered impaired. In other…

Q: (b) Splish Inc. issued $590,000 of 9%, 10-year bonds on June 30, 2020, for $488,488. This price…

A: Calculation of interest expense as on October 31, 2020, using effective-interest method: Thus, the…

Q: At the beginning of 2021, GROOT Corporation issued 10% bonds with a face value of ₱1,800,000. These…

A: Interest expense is the sum of cash expense incurred on payment of interest and amortization expense…

Q: On January 1, 2021, Minorka Company issued a 5-year, P3,000,000, 17% bonds. The effective interest…

A: The bond price for the buying of the bonds is the price after paying all costs. The effective…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds' annual…

A: Premium on bonds at the time of issuance = Issue price of bonds - Face value of bonds