Bond Amortization Tables On January 1, Year 1, Calvert Company issues 12%, $100,000 face value bonds...

 

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Bond Amortization Tables On January 1, Year 1, Calvert Company issues 12%, $100,000 face value bonds for $103,545.91, a price to yield 10%. The bonds mature on December 31, Year 2. Interest is paid semiannually on June 30 and December 31. Required 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare the journal entries to record the interest payments on June 30, Year 1, and December 31, Year 1, using both methods. LO 14.5 E14-16 Premium Amortization and Partial Retirement Rockwood Company issued $100,000 of 10% bonds on November 1, Year 1, at 103. Interest on the bonds is payable on November 1 and May 1 of each year, LO 14.6 and the maturity date is November 1, Year 10. Rockwood retired bonds with a face value of $20,000 on February 1, Year 3, at 98 plus accrued interest. Rockwood uses straight-line amortization and reverses any calendar year-end adjusting entries. Show Me How Required 1. Prepare the journal entry to record the issuance of the bonds on November 1, Year 1. 2. Prepare all the journal entries to record the interest expense during Year 2. 3. Prepare the journal entries to record the retirement of $20,000 of the bonds on February 1, Year 3. Bond Amortization Tables On January 1, Year 1, Calvert Company issues 12%, $100,000 face value bonds for $103,545.91, a price to yield 10%. The bonds mature on December 31, Year 2. Interest is paid semiannually on June 30 and December 31. Required 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare the journal entries to record the interest payments on June 30, Year 1, and December 31, Year 1, using both methods. LO 14.5 E14-16 Premium Amortization and Partial Retirement Rockwood Company issued $100,000 of 10% bonds on November 1, Year 1, at 103. Interest on the bonds is payable on November 1 and May 1 of each year, LO 14.6 and the maturity date is November 1, Year 10. Rockwood retired bonds with a face value of $20,000 on February 1, Year 3, at 98 plus accrued interest. Rockwood uses straight-line amortization and reverses any calendar year-end adjusting entries. Show Me How Required 1. Prepare the journal entry to record the issuance of the bonds on November 1, Year 1. 2. Prepare all the journal entries to record the interest expense during Year 2. 3. Prepare the journal entries to record the retirement of $20,000 of the bonds on February 1, Year 3.