Question

On January 1 , 201 2, The Meadows Golf C ourse issued $450,000 of 1 5-year, 6% bonds payable. The bonds were sold for $477,000. The bonds pay interest each June 30 and December 31 , and any discount or premium is amortized using straight-line amortization.

Requirements
1. Fill in the blanks to complete these statements:
a. The Meadows Golf C ourse’s bonds are priced at (express the price as a percentage) _________.
b. When The Meadows Golf C ourse issued its bonds, the market interest rate was (higher than, lower than, or equal to) _________ 6% .
c. The amount of bond discount or premium is $ _________.
2. Record the following transactions:
a. Issuance of the bonds payable on January 1 , 201 2. Explanations are not required.
b. Payment of interest (and amortization of discount or premium if any) on June 30, 201 2. Explanations are not required.
c. Payment of interest (and amortization of discount or premium if any) on December 31 , 201 2. Explanations are not required.
3. At what amount will The Meadows Golf C ourse report the bonds on its balance sheet at December 31 , 201 2?



$1.99
Sales0
Views100
Comments0
  • CreatedApril 29, 2014
  • Files Included
Post your question
5000