Banjo Education Corp. issued a 4%, $180,000 bond that pays interest semiannually each June 30 and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Banjo Education Corp. issued a 4%, $180,000 bond that pays interest semiannually each June 30 and December 31. The date of issuance was January 1, 2020. The bonds mature after four years. The market interest rate was 6%, Banjo Education Corp's year-end is December 31. Use TABLE 14A1 and TABLE 14A.2. (For all the requirements, Use appropriate factor(s) from the tables provided.) Required: Preparation Component: 1. Calculate the issue price of the bond. (Round the final answer to the nearest whole dollar.) tssue price of the bond 2. Prepare a general journal entry to record the issuance of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list 3. Determine the total bond interest expense that will be recognized over the life of these bonds. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.) Total bond interest expense 4. Prepare the first two years of an amortization table based on the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Unamortized Period Ending Cash Interest Period Interest Paid Discount Amort. Carrying Value Expense Discount Jan. 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 5. Present the journal entries Banjo would make to record the first two interest payments. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 2 Record the six months' interest and discount amortization. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2020 Banjo Education Corp. issued a 4%, $180,000 bond that pays interest semiannually each June 30 and December 31. The date of issuance was January 1, 2020. The bonds mature after four years. The market interest rate was 6%, Banjo Education Corp's year-end is December 31. Use TABLE 14A1 and TABLE 14A.2. (For all the requirements, Use appropriate factor(s) from the tables provided.) Required: Preparation Component: 1. Calculate the issue price of the bond. (Round the final answer to the nearest whole dollar.) tssue price of the bond 2. Prepare a general journal entry to record the issuance of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list 3. Determine the total bond interest expense that will be recognized over the life of these bonds. (Do not round intermediate calculations. Round your answer to the nearest whole dollar.) Total bond interest expense 4. Prepare the first two years of an amortization table based on the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Unamortized Period Ending Cash Interest Period Interest Paid Discount Amort. Carrying Value Expense Discount Jan. 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 5. Present the journal entries Banjo would make to record the first two interest payments. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 2 Record the six months' interest and discount amortization. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2020
Expert Answer:
Answer rating: 100% (QA)
11 Calculate the issue price of bond in the following ma... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
Students also viewed these accounting questions
-
Banro Corp. issued a 4%, $150,000 bond that pays interest semi-annually each June 30 and December 31. The date of issuance was January 1, 2014. The bonds mature after four years. The market interest...
-
A bond that pays interest semiannually has a coupon rate of 5.17 percent and a current yield of 5.49 percent. The par value is $1,000. What is the bond's price? $926.02 $1,061.90 $941.71 $970.86...
-
A bond that pays interest semiannually has a coupon rate of 5.17 percent and a current yield of 5.49 percent. The par value is $1,000. What is the bond's price? $926.02 $1,061.90 $941.71 $970.86...
-
One current practice is to calculate the years remaining for a depletable resource by taking the prevailing estimates of current reserves and dividing it by current annual consumption. How useful is...
-
Suppose there are 4 molecules, and that the probability of a molecule's remaining is thought to be p = 0.6. In a sample of 80 cells, we find 5 with no molecules, 20 with one molecule, 20 with two...
-
Consider the loglinear model with symbol (XZ, YZ). a. For fixed k, show that { ijk } equal the fitted values for testing independence between X and Y within level k of Z. b. Show that the Pearson and...
-
What differences exist between metrics and analytics that focus on HR efficiency, operational effectiveness, and organizational realignment? Offer examples of each.
-
Sophia is a contestant on a game show and has selected the prize that lies behind door number 3. The shows host tells her that there is a 50 percent chance that there is a $15,000 diamond ring behind...
-
Image transcription text Water vapor (steam) expands from 1000 kPa and 600 C to 500 kPa and 400 C. a) according to the steam tables (table A-6), find the change in enthalpy and entropy. b) Table A-23...
-
In a paint mixing plant, two tanks supply fluids to a mixing cistern. The height, h, of the fluid in the cistern is dependent upon the difference between the input mass flow rate, q, and the output...
-
XYZ has 5 customers that represent all of its $20,000,000 in sales. Your activity-based costing system can allocate all costs to key activities incurred in connection with serving your customers,...
-
LP has application in many fields. The planning of consumer surveys can be a tool in the area of a. operation analysis. b. media optimisation. c. portfolio risk assessment. d. marketing research. e....
-
What benefits do airlines attempt to obtain through an alliance? Why doesnt an airline simply add the new destinations it wishes to serve instead of entering an alliance?
-
Among the assumptions for the formulation of an LP problem, there is linearity. What does it mean in practice, and why it is important?
-
Provide an example of a domestic alliance and an international alliance.
-
What is sensitivity analysis? Why should sensitivity analysis consider all possible consequences?
-
Does the migration of American medical tourists negatively affect the U.S. healthcare system and economy? If so, how? If not, why? include at least two peer-reviewed article/journal/book as a...
-
The tractor is used to lift the 150-kg load B with the 24-mlong rope, boom, and pulley system. If the tractor travels to the right at a constant speed of 4 m/s, determine the tension in the rope when...
-
On December 11, 2020, the Sydney Company borrowed $42,000 and signed a 60-day, 5.5% note payable. Calculate the accrued interest payable on December 31, 2020.
-
Range Energy Corp.?s financial statements for the current year ended December 31, 2020, have been completed and submitted to you for review. The equity account balances a year ago, at December 31,...
-
Sask Tractor borrowed $320,000 to purchase inventory on September 17, 2020 for 60 days at 6% interest by signing a note. On December 6, 2020, Sask Tractor sold a tractor for cash of $24,000 (cost...
-
What are the differences among an onsite team, a virtual team, a task force, and a committee? What are some of the potential differences in dynamics between people in these different groups?
-
What are the benefits of implementing programs to address cultural competence within a health care organization? What are the costs of not implementing such programs?
-
Over the past month, every member of the Intravenous (IV) Therapy Team has complained to you about the IV Team supervisor. Her direct reports, all RNs, agree that she is technically superb. However,...
Study smarter with the SolutionInn App