Question: E15-9 Bight nd October 1. Below is a partial amortization schedule for the first few years of the bond issue erl 1 a bonds on

E15-9

Bight nd October 1. Below is a partial amortization schedule for the first few years of the bond issue erl 1 a bonds on April 1, 2016. Interest is paid semi-annually on Answer ques amortization LO 3) AP Semi-Annual Interest Period Interest Payment Interest Bond Amortized pense Amortization Apr. 1, 2016 Oct. 1, 2016 Apr. 1, 2017 Oct. 1, 2017 Apr. 1, 2018 Oct. 1, 2018 Apr. 1, 2019 Cost $8,000 8,000 8,000 $418,444 6,277 6,251 6,225 6,198 6,171 $1,723 1,749 1,775 1,802 1,829 1,857 416,721 414,972 413,197 411,395 409,566 407,709 8,000 8,000 ) Were the bonds issued at a discount or at a premium? b) What is the bonds' face value? el What will the bonds' amortized cost be at the maturity date? 4) What will be the total interest payment over the five-year life of the bonds? Total interest expense? el Prepare the journal entry to record the issuance of the bond. (0 Prepare the journal entry for the first interest payment Prepare the adjusting journal entry on December 31, 2016, assuming this is Bight's year end (b) Prepare the journal entry for the payment of interest on April 1, 2017. Assume no reversing entries have been used. Calcul sched E15-9 Messer Company issued $600,000 of 8%, 7-year bonds on January 1, 2017. The bonds pay interest Instructions (a) Assuming the market interest rate on January 1, 2017, was 7%, calculate the bond's issue price. (b) Prepare an effective interest amortization table for this bond. Cale E15-10 Korman Company issued S800 000 of 7%, 7-year bonds on January 1, 2017 The bonds pay interest (LC Instructions (a) Assuming the market interest rate on January 1, 2017, was 8%, calculate the bond's issue price. Prepare an effective interest amortization table for this bond. E15-11 Instructions Western Inc. issues $800,000 of5-year, 6% bonds on January 1,2017. The bonds p ay interest annually Calculate the issue price of the bonds using a market rate of 5% and record the bond issue. a Prepare the journal entries to record the first three interest payments 5-12 Amiani Company issues $500,000 ors year, 7% bonds on lanuary 1, 2017. Interest is paid annually. Assuming the market interest rate was 9% on the date of issue, record the issue of the bonds. Ca tre an effective interest amortization table for the bonds. d) Assuming Western has an October 31 year end, prepare the adjusting entry for interest on October 31, 2017 t amortization table for the bonds

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!

E15.8 (LO 3) Bight Corporation issued $400,000 of 5-year semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the bond issue. Semi-Annual...

Bight Corporation issued $400,000 of 5-year bonds on April 1, 2023. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the...

Bight Corporation issued $400,000 of 5-year bonds on April 1, 2016. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the...

Bight Corporation issued $ 4 0 0 , 0 0 0 of 5 - year bonds on April 1 , 2 0 2 3 . Interest is paid semi - annually on April 1 and October 1 . Below is a partial amortization schedule for the first...

E15.8 (LO 3) AP Bight Corporation issued $400,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few...

Sandhill Corporation issued $340,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the...

Bight Corporation issued $400,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the...

Please add step by step solution. Sunland Corporation issued $440,000 of 5-year bonds on April 1, 2023. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization...

Crane Corporation issued $370,000 of 5-year bonds on April 1, 2023. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the...

Crane Corporation issued $490,000 of 5-year bonds on April 1, 2023. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the...

I need to process Hive tables column, BUDGET, with its value 2345.519728. What is the result of FORMAT_NUMBER(BUDGET, 3)? a. 2,345.519 b. 2,345.520 c. 2,345 d. 2,345.519728

You're the pricing product manager for Lyft's ride-scheduling feature, and you're launching a new city --Toledo. The prevailing rate that people are used to paying for rides from the airport to...

Data follow for Andrus Inc.: Required: 1. Compute the margin and turnover ratios for each year. 2. Compute the ROI for the company for each year. Sales Operating income Average operating assets Year...

8-6 Who poses the biggest security threat: insiders or outsiders?

8-12 In MyMISLab, you will find a Collaboration and Teamwork Project dealing with the concepts in this chapter. You will be able to use Google Drive, Google Docs, Google Sites, Google+, or other open...

8-14 Describe some of the main points of the Digital Agenda for Europe. The IT sector is one of the key drivers of the European economy. It has been estimated that 60 percent of Europeans use the...