Pediatric Dispensary borrowed $600,000 on January 2, 2016, by issuing a 15 %15% serial bond payable that
Question:
Pediatric Dispensary borrowed $600,000 on January 2, 2016, by issuing a 15 %15% serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2, 2017. Complete the missing information. Assume bonds are issued at face value.
_____________________________________________________________________
______________________________________________________________________
______________________________________________________________________
On December 31, 2016,when the market interest rate is 14% Vincent RealtyVincent Realty issues $500,000 of 15.25%,10-year bonds payable. The bonds pay interest semiannually.Vincent RealtyVincent Realty received $532,896 in cash at issuance.
Requirements
1. | Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round all numbers to the nearest whole dollar.) |
2. | Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. |
Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round all numbers to the nearest whole dollar.)
Interest | Carrying | |||
Cash Paid | Expense | Amortized | Amount | |
12/31/2016 | ||||
06/30/2017 | ||||
12/31/2017 |
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura