)On January 1, 2018, Muller Company issued $500,000 of 10-year bonds for cash proceeds with a...
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)On January 1, 2018, Muller Company issued $500,000 of 10-year bonds for cash proceeds with a stated rate of 14% per annum. The market rate is 12% 30 and December 31. Muller uses the effective interest method to amortize discount/premium. PV factor for: 7% 12% 14% 0.26974 a single sum 0.07276 5.21612 6.62313 an ordinary annuity 10 periods 20 periods 10 periods 20 periods 6% 0.55839 0.31180 7.36009 7.02358 11.46992 10.59401 0.50835 0.32197 0.25842 0.10367 5.65022 7.46944 (a) What is the journal entry made by Muller on the date the bonds are issued on January 1, 2018? (b) What is the journal entry made by Muller on June 30, 2018 abd December 31, 2018? (c) Ignore the information above. Assume that Muller has outstanding bonds (other than the bonds issued on January 1, 2018). For these bonds, the following balances existed at September 30, 2021: Bonds Payable: $1,000,000 Unamortized Discount on Bonds Payable: 113,000 Unamortized Bond Issue Costs: 48,000 Muller retires (redeems) these bonds on October 1, 2021, at 103. What is the journal entry made by Muller to record the bond redemption? )On January 1, 2018, Muller Company issued $500,000 of 10-year bonds for cash proceeds with a stated rate of 14% per annum. The market rate is 12% 30 and December 31. Muller uses the effective interest method to amortize discount/premium. PV factor for: 7% 12% 14% 0.26974 a single sum 0.07276 5.21612 6.62313 an ordinary annuity 10 periods 20 periods 10 periods 20 periods 6% 0.55839 0.31180 7.36009 7.02358 11.46992 10.59401 0.50835 0.32197 0.25842 0.10367 5.65022 7.46944 (a) What is the journal entry made by Muller on the date the bonds are issued on January 1, 2018? (b) What is the journal entry made by Muller on June 30, 2018 abd December 31, 2018? (c) Ignore the information above. Assume that Muller has outstanding bonds (other than the bonds issued on January 1, 2018). For these bonds, the following balances existed at September 30, 2021: Bonds Payable: $1,000,000 Unamortized Discount on Bonds Payable: 113,000 Unamortized Bond Issue Costs: 48,000 Muller retires (redeems) these bonds on October 1, 2021, at 103. What is the journal entry made by Muller to record the bond redemption?
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CALCULATION OF THE PRICE OF THEBONDS Price of the bonds is the PV of the face amou... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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