Evaluate statements about bonds.

E15.1 (LO 1), C Nick Bosch has prepared the following list of statements about bonds.

1) Bonds are a form of interest-bearing notes payable.

2) Secured bonds have specific assets of the issuer pledged as collateral for the bonds.

3) Secured bonds are also known as debenture bonds.

4) A conversion feature may be added to bonds to make them more attractive to bond buyers.

5) The rate used to determine the amount of cash interest the borrower pays is called the stated rate.

6) Bond prices are usually quoted as a percentage of the face value of the bond.

7) The present value of a bond is the value at which it should sell in the marketplace.

Instructions

Identify each statement as true or false. If false, indicate how to correct the statement.

Prepare entries for issuance of bonds, and payment and accrual of bond interest.

E15.15 (LO 5), AP Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2022, at 103. Interest is payable annually on January 1. Adcock uses straight-line amortization for bond premium or discount.

Instructions

Make the journal entries to record the following.

A) The issuance of the bonds.

B) The accrual of interest and the premium amortization on December 31, 2022.

C) The payment of interest on January 1, 2023.

D) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Prepare entries to record issuance of bonds, payment of interest, amortization of discount, and redemption at maturity.

P15.8 (LO 6), AP On January 1, 2022, Lock Corporation issued $1,800,000 face value, 5%, 10-year bonds at $1,667,518. This price resulted in an effective-interest rate of 6% on the bonds. Lock uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1.

Instructions

PLEASE USE MICROSOFT EXCEL FOR THIS EXERCISE

(Round all computations to the nearest dollar.)

A) Make the journal entry to record the issuance of the bonds on January 1, 2022.

B) Make an amortization table through December 31, 2024 (three interest periods) for this bond issue.

C) Make the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2022.

c. Interest Expense $100,051

D) Make the journal entry to record the payment of interest on January 1, 2023.

E) Make the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2023.

Make journal entries to record issuance of bonds, payment of interest, and effective-interest amortization, and balance sheet presentation.

Can someone please assist me with exercises: E15.1, E15.15, and P15.8? Please do exercise P15.8 in Microsoft Excel.