Subject: a. Issuance of the bonds on June 1, 2023b. Payment of Interest on December 1, 2023c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2024d. Payment of Interest on June 1, 2024Assume JetCom Inventors Inc. has a January 31 year-end.View transaction letJournal entry worksheetRecord issued bond at discount.Note: Enter debits before credits.DateJune 01, 2023Record entryGeneral JoumalClear entryDebitCreditView general JournalPart 2Show how the bonds will appear on the balance sheet under non-current liabilities at January 31, 2025. (Do not round Intermediatecalculations. Round the final answers to the nearest whole dollar) On June 1, 2023, JetCom Inventors Inc. Issued a $530,000 10 %, three-year bond. Interest is to be paid semiannually beginningDecember 1, 2023.Required:a Calculate the issue price of the bond assuming a market Interest rate of 11%. (Do not round Intermediate calculations. Round thefinal answer to the nearest whole dollar)Issue price of the bondb. Using the effective Interest method, prepare an amortization schedule. (Do not round Intermediate calculations. Round the finalanswers to the nearest whole dollar. Enter all the amounts as positive values.)PeriodEndingJune 1/23Dec. 1/23June 1/24Dec. 1/24June 1/25Dec. 1/25June 1/26TotalsCashInterest PaidPeriod interestExpenseDiscountAmortUnamortized CarryingDiscountValuePart 1Prepare journal entries to the following. (Do not round Intermediate calculations. Round the final answers to the nearest wholedollar)

The Effective Interest Method is a common approach used to amortize the discount or premium on a…

On June 1, 2023, JetCom Inventors Inc. Issued December 1, 2023. Required: a Calculate the issue price of the bond assuming a market interest rate of 11% (Do not round Intermediate calculations. Round the final answer to the nearest whole dollar) Issue price of the bond b. Using the effective Interest method, prepare an amortization schedule. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Period Ending June 1/23 Dec. 1/23 June 1/24 Dec. 1/24 June 1/25 Dec. 1/25 June 1/26 Totals Cash Interest Paid Discount Period interest Expense Amort Unamortized Discount Carrying Value Part 1 Prepare journal entries to the following. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar)

On June 1, 2023, JetCom Inventors Inc. Issued December 1, 2023. Required: a Calculate the issue price of the bond assuming a market interest rate of 11% (Do not round Intermediate calculations. Round the final answer to the nearest whole dollar) Issue price of the bond b. Using the effective Interest method, prepare an amortization schedule. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Period Ending June 1/23 Dec. 1/23 June 1/24 Dec. 1/24 June 1/25 Dec. 1/25 June 1/26 Totals Cash Interest Paid Discount Period interest Expense Amort Unamortized Discount Carrying Value Part 1 Prepare journal entries to the following. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar)

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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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?
Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortization
Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?
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
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