Lopez Plastics Co. (LPC) issued $200,000 of 10% callable bonds on February 1, 2021, dated January...
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Lopez Plastics Co. (LPC) issued $200,000 of 10% callable bonds on February 1, 2021, dated January 1, 2021 and due on January 1, 2026. The interest is to be paid twice a year or January 1 and July 1. The bonds were sold to yield 8% effective annual interest. LPC incurred $5,000 in bond issue costs. LPC closes its books annually on December 31. Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an annuity for 5 periods Present value of an annuity for 10 periods 1/1/21 6/30/21 12/31/21 4% 6/30/22 12/31/22 5% 82193 67556 4.45182 4.32948 8.11090 7.72173 Prepare the journal entry for bond issuance. 8% 78353 68058 61391 46319 3.99271 6.71008 10% Instructions (a) Complete the following amortization schedule for the dates indicated. (Round all answers to the nearest dollar.) Use the effective-interest method. Credit Cash Interest Expense Bond Discount Carrying Amount 62092 38554 3.79079 6.14457 Lopez Plastics Co. (LPC) issued $200,000 of 10% callable bonds on February 1, 2021, dated January 1, 2021 and due on January 1, 2026. The interest is to be paid twice a year or January 1 and July 1. The bonds were sold to yield 8% effective annual interest. LPC incurred $5,000 in bond issue costs. LPC closes its books annually on December 31. Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an annuity for 5 periods Present value of an annuity for 10 periods 1/1/21 6/30/21 12/31/21 4% 6/30/22 12/31/22 5% 82193 67556 4.45182 4.32948 8.11090 7.72173 Prepare the journal entry for bond issuance. 8% 78353 68058 61391 46319 3.99271 6.71008 10% Instructions (a) Complete the following amortization schedule for the dates indicated. (Round all answers to the nearest dollar.) Use the effective-interest method. Credit Cash Interest Expense Bond Discount Carrying Amount 62092 38554 3.79079 6.14457
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College Accounting A Practical Approach Chapters 1-25
ISBN: 9780133791006
13th Edition
Authors: Jeffrey Slater
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