1. Hartley Corporation issued $600,000 of 7%, 10-year bonds payable on March 31, 2019. The market...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Hartley Corporation issued $600,000 of 7%, 10-year bonds payable on March 31, 2019. The market interest rate at the date. of issuance was 9%, and the bonds pay interest semiannually. Hartley Corporation's year-end is March 31. Read the requirements. 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ 2. Prepare an effective-interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar. Bond Discount Semiannual Interest Account Carrying Discount Interest Date Interest Expense Payment Amount Balance Amortization Mar 31, 2019 Sep 30, 2019 Mar 31, 2020 Sep 30, 2020 3. Record Hartley Corporation's issuance of the bonds on March 31, 2019, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2019. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording the issuance of bonds on March 31, 2019. Journal Entry Date Accounts Debit Credit Mar 31 (1) (2) (3) (4) Now record the payment of the first semiannual interest amount and amortization of the bond discount on September 2019. Journal Entry Debit Accounts Credit Date Sep 30 (5) (6) (8) 1. Hartley Corporation issued $600,000 of 7%, 10-year bonds payable on March 31, 2019. The market interest rate at the date. of issuance was 9%, and the bonds pay interest semiannually. Hartley Corporation's year-end is March 31. Read the requirements. 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ 2. Prepare an effective-interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar. Bond Discount Semiannual Interest Account Carrying Discount Interest Date Interest Expense Payment Amount Balance Amortization Mar 31, 2019 Sep 30, 2019 Mar 31, 2020 Sep 30, 2020 3. Record Hartley Corporation's issuance of the bonds on March 31, 2019, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2019. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording the issuance of bonds on March 31, 2019. Journal Entry Date Accounts Debit Credit Mar 31 (1) (2) (3) (4) Now record the payment of the first semiannual interest amount and amortization of the bond discount on September 2019. Journal Entry Debit Accounts Credit Date Sep 30 (5) (6) (8)
Expert Answer:
Answer rating: 100% (QA)
Part 1 Issue Price of Bond Issue price of a bond is the present value PV of its future cash flows ie PV of its annual coupon payments and PV of its face value or maturity value Thus Issue Price of bon... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
Students also viewed these accounting questions
-
On June 30, 2014, the market interest rate is 3.5%. First Base Sports Ltd. issues $4,000,000 of 412%, 20-year bonds payable. The bonds pay interest on June 30 and December 31. First Base Sports Ltd....
-
On June 30, 2014, the market interest rate is 3%. Garden Groceries Ltd. issues $1,600,000 of 4%, 15-year bonds. The bonds pay interest on June 30 and December 31. Garden Groceries Ltd. amortizes bond...
-
On June 30, 2016, the market interest rate is 8%. Team Sports Ltd. issues $800,000 of 10%, 10-year bonds payable. The bonds pay interest on June 30 and December 31. Team Sports Ltd. amortizes bond...
-
Dr. Thomas Bilski is a primary care physician with a practice that is currently serving 280 patients. Dr. Bilski would like to administer a survey to his patients to measure their satisfaction levels...
-
Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected? Suppose your firm is considering investing in a project with the cash flows shown as follows,...
-
In the xy-plane, line q and line r are parallel. Line q passes through the point (3,7), and line r passes through the point (3,2). If the y-intercept for line r is 2, what is the equation of a line...
-
Under what conditions is an auditor most likely to confirm payables?
-
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2017. In the process of setting up the business, Karane has acquired various types of assets. Below...
-
3. Given: Measured compressive strength of concrete as a function of curing time Curing time (days) Compressive strength of concrete (MPa) 0.1 2 17 4 23 7 26 14 28 21 28 29 30 Find: (a) Using Excel,...
-
Please complete the Express Catering, Inc.s 2014 tax return based upon the information provided below. If required information is missing, use reasonable assumptions to fill in the gaps. Ignore any...
-
Jezebel Company incurred fixed costs of $300,000. Total costs, both fixed and variable, are $450,000 when 50,000 units are produced. It sold 35,000 units during the year. Calculate the variable cost...
-
The primary side of a transformer comes from the power plant; the secondary side leads away from the power plant to the house. If the primary coil has 20 times as many winds as the secondary coil,...
-
An engineering summer student is asked to determine the surface tension of a sample of liquid. She has access to thin wire of various diameters and conducts a series of experiments. The wire is made...
-
If a pixel is the basic building A Shock-mount is used with a microphone to aid is isolating the mic from: Question 3 options: Unwanted reflections Wind noise Environmental noise Mechanical/handling...
-
in a period of 1 5 s , an elevator car which weighs 6 0 0 0 N including its passenger goes from the first floor to the third floor by covering a vertical distance of 3 6 m . what is the average power...
-
You are laying on the grass with your partner, staring up at the sky as a plane sky-writes letters above (you have arranged a romantic message). Both of you have normal vision. You know that the...
-
Correct or Incorrect Statement? 1) The second law of thermodynamic is based on the thermal equilibrium principle. 2) The heat added at constant pressure is greater than that at constant volume. 3)...
-
Kims Konstructions has assembled the following data for a proposed straw-reinforced brick maker (SRBM): SRBM Cost: $26,000 Life: 5 years Revenue (p.a.) $11,000 Operating Expenses (p.a.) $3,000...
-
On December 31,2016, Carrboro Textile Company had short-term debt in the form of notes payable totaling $600,000. These notes were due on June 1, 2017. Carrboro expected to refinance these notes on a...
-
On January 1, 2017, Spring Fashions Inc. enters into a contract with a southeast retail company to provide 500 dresses for $ 62,500 ($ 125 per dress) over the next 10 months. On October 1, 2017,...
-
Lin has just completed its first year of operations and has a number of differences between its pretax financial income and taxable income. The differences at the end of 2016 are as follows: a. Lin...
-
Determine the horizontal displacement at \(C\). Take \(E=29\left(10^{3} ight) \mathrm{ksi}, I=150 \mathrm{in}^{4}\) for each member. Use the method of virtual work. 8k- C 8 ft 10 ft D B
-
Solve Prob. 8-53 using Castigliano's theorem. Data From Problem 8.53 8 k 10 ft. 8 ft D A B
-
Determine the horizontal displacement of the rocker at \(B\). Take \(E=29\left(10^{3} ight) \mathrm{ksi}, I=150 \mathrm{in}^{4}\) for each member. Use the method of virtual work. 8k- C 8 ft 10 ft B
Study smarter with the SolutionInn App