Homework Help is Here – Start Your Trial Now!
Business
Accounting
Use the present value tables to calculate the issue price and make the journal entry of a $100,000 bond issue in each of the following independent cases. Assume that the bond was issued on January 1, 2010 and that interest is paid semi-annually on June 30 and December 31. A) A 10-year, 8 percent bond issue; the market interest rate is 10 percent B) A 10-year, 8 percent bond issue; the market interest rate is 6 percent C) A 10-year, 10 percent bond issue; the market interest rate is 8 percent D) A 20-year, 10 percent bond issue; the market interest rate is 12 percent E) A 20-year,10 percent bond issue; the market interest rate is 6 percent

Use the present value tables to calculate the issue price and make the journal entry of a $100,000 bond issue in each of the following independent cases. Assume that the bond was issued on January 1, 2010 and that interest is paid semi-annually on June 30 and December 31. A) A 10-year, 8 percent bond issue; the market interest rate is 10 percent B) A 10-year, 8 percent bond issue; the market interest rate is 6 percent C) A 10-year, 10 percent bond issue; the market interest rate is 8 percent D) A 20-year, 10 percent bond issue; the market interest rate is 12 percent E) A 20-year,10 percent bond issue; the market interest rate is 6 percent

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter11: Liabilities: Bonds Payable
Section: Chapter Questions
Problem 11.3BPR
See similar textbooks
icon
Related questions
Question

question 3 4 5 

BONDS

  1. Use the present value tables to calculate the issue price and make the journal entry of a

$100,000 bond issue in each of the following independent cases. Assume that the bond was

issued on January 1, 2010 and that interest is paid semi-annually on June 30 and December 31.

  1. A) A 10-year, 8 percent bond issue; the market interest rate is 10 percent
  2. B) A 10-year, 8 percent bond issue; the market interest rate is 6 percent
  3. C) A 10-year, 10 percent bond issue; the market interest rate is 8 percent
  4. D) A 20-year, 10 percent bond issue; the market interest rate is 12 percent
  5. E) A 20-year,10 percent bond issue; the market interest rate is 6 percent
  6. F) A 15-year,12 percent bond issue; the market interest rate is 10 percent
  7. G) A 15-year, 10 percent bond issue; the market interest rate is 12 percent
  8. Use the present value tables to calculate the issue price of a $500,000 bond issue in each of the

following independent cases. Assume that the bond was issued on January 1, 2010 and that

interest is paid quarterly on March 31, June 30 September 30 and December 31.

  1. A) A 10-year, 8 percent bond issue; the market interest rate is 12 percent
  2. B) A 10-year, 12 percent bond issue; the market interest rate is 8 percent
  3. C) A 5-year, 12 percent bond issue; the market interest rate is 8 percent
  4. D) A 5-year, 8 percent bond issue; the market interest rate is 12 percent

 

  1. Using the information from question # 1a and 1b above, prepare the amortization schedules and

make the entry to record the interest expense for the years 2010, 2011 & 2012

  1. Using the information from question #3, make the journal entry to record the retirement on

bonds on January 1, 2013 at the following independent prices

  1. A) 95
  2. B) 106
  3. Using the information from question # 1a and 1b above, assume that interest is paid on January

1 and July 1. Prepare the amortization schedules and make the entry to record the interest

expense for the years 2010, 2011 & 2012

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

WHAT DOES THE AMORTIZATION SCHEDULE LOOK LIKE FOR QUESSTION 3  AND QUESTION 5

 

 

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Bond Amortization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS