$1,000,000, 6%, 20-year bonds were issued by Pine Co. on July 31, 2023, for a price...
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$1,000,000, 6%, 20-year bonds were issued by Pine Co. on July 31, 2023, for a price to yield 5%. Interest will be paid every January 31 and July 31. Pine Co.'s fiscal year is December 31 and it uses the effective interest method to amortize any discount or premium on its bonds. REQUIRED: 1. Calculate the issue price of the bonds on July 31, 2023. 2. Prepare the necessary journal entries on these dates: July 31, 2023, December 31, 2023, January 31, 2024.and. July 31, 2043 (the maturity date), 3. Based on your answer to 2 above, show the balance sheet accounts and related dollar amounts for Fresh Co. on December 31, 2023. 4. On July 31, 2024 Pine Co. called in 60% of the bonds for a price of 105. Prepare the journal entry to call in the bond. (ignore any interest payment on this date). $1,000,000, 6%, 20-year bonds were issued by Pine Co. on July 31, 2023, for a price to yield 5%. Interest will be paid every January 31 and July 31. Pine Co.'s fiscal year is December 31 and it uses the effective interest method to amortize any discount or premium on its bonds. REQUIRED: 1. Calculate the issue price of the bonds on July 31, 2023. 2. Prepare the necessary journal entries on these dates: July 31, 2023, December 31, 2023, January 31, 2024.and. July 31, 2043 (the maturity date), 3. Based on your answer to 2 above, show the balance sheet accounts and related dollar amounts for Fresh Co. on December 31, 2023. 4. On July 31, 2024 Pine Co. called in 60% of the bonds for a price of 105. Prepare the journal entry to call in the bond. (ignore any interest payment on this date).
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Calculation of issue price of bonds on July 31 2023 Face value of bonds 1000000 Interest rate 6 Period 20 years Coupon payment 6 x 1000000 60000 per y... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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