Question: Answer part D please 1. 20 marks On January 1, 2019, Lissome Corp. issued $900,000 of 20 -year, 11% bonds for $832,290, yielding a market

Answer part D please

1. 20 marks On January 1, 2019, Lissome Corp. issued $900,000 of 20 -year, 11\% bonds for $832,290, yielding a market (discount, yield) rate of 12%. Interest is payable semi-annually on June 30 and December 31. Required: a. Prepare journal entries to record the bond issuance. Prepare the 3-column amortization table for 4 periods. b. Prepare journal entries to record the semi-annual interest payment and discount amortization on (j) June30, 2019 and (ii) December 31,2019. C. Lissome elected to report the bonds in its financial statements at fair market value. On December 31 , 2019, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? d. Determine the income statement effects of (b) and (c) for 2019. That is, the interest expense and any unrealized gain/loss

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question #2 (45 marks) This question consists of 2 independent sub-questions 1. 25 marks On January 1, 2019, Lissome Corp. issued $900,000 of 20-year, 11% bonds for $832,290, yielding a market...

Question #2 (45 marks) On January 1, 2019, Lissome Corp. issued $900,000 of 20-year, 11% bonds for $832,290, yielding a market (discount, yield) rate of 12%. Interest is payable semi-annually on June...

Question #4 (20 marks) Part A and Part B are independent. Part A. (14 marks) On January 1, 2021, Daniel Corp. issued $500,000 of 10-year, 8% bonds for $385,298, yielding a market (discount, yield)...

Hi, I need help with the following. Please provide solution process: Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2016, Trueman Corp. issued $300,000 of 20...

Part A. (10 marks) Hebetude Corporation issued $400,000 of 11%, 20-year bonds at 108 on January 1, 2016. Interest is payable semi-annually on June 30 and December 31. Through January 1, 2020,...

Please fill out every blue box in an organized way, thank you! Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current year, Trueman Corporation issued...

Question 1 Partially correct Mark 55.00 out of 62.00 P Flag question Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2019, Trueman Corp. issued $600,000 of...

E9-48.Stat eBook Print Question 1 Incomplete answer Marked out of 62.00 P Fag question a. Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2019, Trueman Corp....

Estimating Useful Life and Percent Used Up The property and equipment footnotes from the Deere & Company balance sheet follows The property and Depreciation A summary of property and equipment at...

LO E9-48. Analysing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2015, Lantau Corp. issued $600,000 of 20-year, 11% bonds for $554,860, yielding a market (yield) rate...

Indicate whether each of the following transactions records an operating activity, an investing activity, a financing activity, or a noncash investing and financingactivity. a. Depreciation Expense b...

In deriving the DFS analysis equation (8.11), we used the identity of Eq. (8.7). To verify this identity, we will consider the two conditions k ? r = m N and k ? r ? m N separately. (a) For k ? r = m...

You just purchased a 1 0 - year corporate bond that has an annual coupon of 1 0 percent. The bond sells at a premium above par. Which of the following statements is most correct? a . The bond's yield...

Projects A and B are mutually exclusive and both have an initial cost of $88,000. Project A has annual cash flows for three years of $18,300, $34,500, and $52,300, respectively. Project B has annual...

Global. Technology. Teamwork. McBride Industries, an American company, has recently opened a branch office in the Czech Republic. Vladimra Pokorny, a Marketing Assistant for the Czech office, has...

Describe three technology trends and how they affect business communication. (Objective 1)

Teamwork. Global. Work with a partner to review the letter to Mr.Wu in Figure 2.3 on page 39 in this chapter. Explain two communication challenges faced by Mr. Doninger in writing the letter. Also,...