9,7 7Discount-Mart issues $14 million in bonds on January 1, 2021. The bonds have a nine-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortizationschedule for the bonds:McGrawHillDate01/01/202106/30/2021 $840,000 $881,42112/31/2021840,000884,32006/30/2022840,000887,42312/31/2022840,000890,742illion in bonds on January:QF1Multiple ChoiceOhttps://play.gooCalculatorOCash PaidWhat is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.)@13%.F26%.InterestExpense12%.HHighlight All80F3JUL 110Increase inCarrying Value$$41,42144,32047,42350,742Match Case000000F4%CarryingValue$12,591,72812,633, 14912,677,46912,724,89212,775,634F5< PrevMatch Diacritics^7 of 10Whole Words 1 of 1 matchMacBook AirF6Score answer >&◄◄F7*DIIF8↓DDF97F103)F11F12

Introduction: A bond is a loan from an investor to a lender, such as a corporation or the…

Discount-Mart issues $14 million in bonds on January 1, 2021. The bonds have a nine-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2021 06/30/2021 $840,000 $881,421 12/31/2021 840,000 840,000 840,000 06/30/2022 12/31/2022 Cash Paid Multiple Choice 13%. Interest Expense 6% 12% 884,320 887,423 890,742 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) Increase in Carrying Value $41,421 44,320 47,423 50,742 Carrying Value $12,591,728 12,633, 149 12,677,469 12,724,892 12,775,634

Discount-Mart issues $14 million in bonds on January 1, 2021. The bonds have a nine-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2021 06/30/2021 $840,000 $881,421 12/31/2021 840,000 840,000 840,000 06/30/2022 12/31/2022 Cash Paid Multiple Choice 13%. Interest Expense 6% 12% 884,320 887,423 890,742 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) Increase in Carrying Value $41,421 44,320 47,423 50,742 Carrying Value $12,591,728 12,633, 149 12,677,469 12,724,892 12,775,634

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...

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Volunteer 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 annually. The premium is amortized using the straightline 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 premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium