The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: 20Y1 July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 20Y1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. 20Y2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. 20Y3 June 30. Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded. (Record the redemption only.) 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. a. 20Y1 $fill in the blank 1dff3ffa7f83007_1 b. 20Y2 $fill in the blank 1dff3ffa7f83007_2 3. Determine the carrying amount of the bonds as of December 31, 20Y2. $fill in the blank 1dff3ffa7f83007_3
The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: 20Y1 July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 20Y1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. 20Y2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. 20Y3 June 30. Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded. (Record the redemption only.) 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. a. 20Y1 $fill in the blank 1dff3ffa7f83007_1 b. 20Y2 $fill in the blank 1dff3ffa7f83007_2 3. Determine the carrying amount of the bonds as of December 31, 20Y2. $fill in the blank 1dff3ffa7f83007_3
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 13M
Related questions
Question
The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:
20Y1 | |
July 1. | Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 20Y1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. |
Dec. 31. | Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. |
20Y2 | |
June 30. | Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. |
Dec. 31. | Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. |
20Y3 | |
June 30. | Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded. (Record the redemption only.) |
2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2.
a. 20Y1 | $fill in the blank 1dff3ffa7f83007_1 |
b. 20Y2 | $fill in the blank 1dff3ffa7f83007_2 |
3. Determine the carrying amount of the bonds as of December 31, 20Y2.
$fill in the blank 1dff3ffa7f83007_3
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
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
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,