Question: Bellevue Corp issued 600 000 of 6 four year bonds for 579 224
Bellevue Corp. issued $600,000 of 6%, four-year bonds for $579,224 on July 1, 2014, the day the bonds were dated. The market interest rate on this date was 7%. Interest is paid quarterly beginning October 1, 2014. Bellevue uses the effective interest method to amortize bond discounts and premiums. Record the issuance of the bonds and the first payment of interest.
Answer to relevant QuestionsAlberta Industries Ltd. issued 10%, 10-year bonds with a par value of $200,000 and semi-annual interest payments. On the issue date, the annual market rate of interest for the bonds was 12%, and the selling price was ...On July 1, 2014, Loudre Ltd. exercises a $4,000 call option on its outstanding bonds, which have a carrying value of $206,000 and par value of $200,000. Loudre exercises the call option immediately after the semi-annual ...Omnicity Corporation had a $1,250,000, 7% bond available for issue on April 1. Interest is to be paid on the last day of each month. On April 14 and 25, bonds with a face value of $890,000 and $360,000, respectively, were ...Refer to the amortization schedule prepared in Exercise 15.11. Dejour Energy Inc. has a November 30 year-end.RequiredPart 1Record the following entries:a. Issuance of the bonds on October 1, 2014,b. Adjusting entry to accrue ...Computalog Inc. showed the following on its December 31, 2014, balance sheet:Required1. Assuming the bonds are convertible into 400,000 common shares, journalize the conversion on January 1, 2015, when the market value per ...
Post your question