2: On May 1st, 2021, Tyler Corp. issued $400,000, 12% bonds maturing on April 1, 2031...
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2: On May 1st, 2021, Tyler Corp. issued $400,000, 12% bonds maturing on April 1, 2031 when the market rate was 10%. These bonds pay interest every October 31 and April 30. Tyler Corp's year end is December 31. Assuming Tyler uses the effective interest method, prepare the journal entry to record the issuance, and prepare an amortization schedule for the first 2 years of the bonds' lives. Finally, prepare the journal entry to be made on December 31, 2021 and December 31, 2022. 46 47 48 49 50 Problem 3: 51 52 53 54 55 56 57 58 59 60 61 62 On October 31, 2020, Hogwart's Corp. issued a 7% installment note for a shipment of cauldrons and brooms. The market value of the shipment on October 31 was $215,000. The agreement called for 6 annual payments of $45,106 beginning on October 31, 2021. Prepare the journal entry for the date of issuance and the journal entries for the first three payment dates. 2: On May 1st, 2021, Tyler Corp. issued $400,000, 12% bonds maturing on April 1, 2031 when the market rate was 10%. These bonds pay interest every October 31 and April 30. Tyler Corp's year end is December 31. Assuming Tyler uses the effective interest method, prepare the journal entry to record the issuance, and prepare an amortization schedule for the first 2 years of the bonds' lives. Finally, prepare the journal entry to be made on December 31, 2021 and December 31, 2022. 46 47 48 49 50 Problem 3: 51 52 53 54 55 56 57 58 59 60 61 62 On October 31, 2020, Hogwart's Corp. issued a 7% installment note for a shipment of cauldrons and brooms. The market value of the shipment on October 31 was $215,000. The agreement called for 6 annual payments of $45,106 beginning on October 31, 2021. Prepare the journal entry for the date of issuance and the journal entries for the first three payment dates.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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