Quick Study $10-5(10$ minutes$)$

$QS10-5$ Recording bond issuance and interest $\frac{?}{{?}_{\frac{?}{?}}P1}P2P3$

$On$ January $1.$ Renewable Energy issues bonds that have $a$ $$20\mathrm{.}000$ par value, mature $in$ eight years, and pay $12\%$ interest semiannually $on$ June $30$ and December $31.$

Prepare the journal entry for issuance assuming the bonds are issued $at(a)99$ and $(b)\frac{1031}{2}.$

How much interest does the company pay $(in$ cash$)to$ its bondholders every six months $if$ the bonds are sold $at$ par?

$q,$

Quick Study $10-19A(10$ minutes$)$

$q,$

$QS10-19{?}^{(}()A)$ Computing bond price $C2$

Compute the selling price $of$ $$\%.10-$vear bonds with a par value $of$ $$250\mathrm{.}000$ and semiannual interest payments. The annual market rate for these bonds $is10\%.$

Use present value tables $B.1$ and $B.3in$ Appendix $B.$

$q,$ Problem $10-2$A Straight Line: Amortization $of$ bond premium $P3$

Refer $to$ the bond details $in$ Problem $10-1A,$ except assume that the bonds are issued $at$ a price $of$ $$4,895,980ab{?}^{(}3)$ life.

Check

$52\mathrm{.}704020$

Prepare the first two years $of$ a straight$-$line amortization table like Exhibit $10\mathrm{.}11.$

$(4)1231$:$2022$ carying vilue $$4776515$

Prepare the journal entries $to$ record the first two interest payments. $QS10-20$ A Computing bond price $C2$

Compute the selting price $of10\%,15-$year bonds with a par value $of$ $$240,000$ and semiannual interest payments. The annual market rate for these bonds $is8\%.$ Use present

value tables $B.1$ and $B3in3$ Appendix $B$

Exercise $10-10(15$ minutes$)$

Exercise $10-10$ Bond retirement $by$ call option $P4$

Tyrell Company issued callable bonds with a par value $of$ $$10\mathrm{.}000.$ The call option requires Tyrell $to$ pay a call premium $of$ $$500$$$10,500$ $$9,000.$

The bonds have a carrying value $of$ $$11,000.$ Problem $10-1$A Straight$-$Line: Amortization $of$ bond discount $P2$

Hillside issues $$4,000,000of6\%,15-$year bonds dated Janusry $1,2021,$ that pay interest semignnully $on$ June $30$ and December $31.$ The bonds are issued $at$ a price $of$

$$3,456,448.$

Required

Prepare the January $1$ journal entry $to$ record the bonds issuance.

For each semignnual period, compute $(a)$ the cash payment, $(b)$ the straight$-$line discount emortization, and $(c)$ the bond interest expense.

Determine the total bond interest expense $tobe$ recognized over the bonds life.

$(4)\frac{12}{31}\frac{?}{2022}$ carryng value $$3528920$

Prepare the first two years $of$ a straight$-$line amortization table like

Exhibit $10\mathrm{.}7.$

Prepare the journal entries $to$ record the first two interest payments.Exercise $10-3(15$ minutes$)$

Exercise $10-3$ Recording bond issuance and interest $P1$

$On$ January $1.$ Boston Enterprises issues bonds that have $a$ $$3,400,000$ par value, mature $in20$ years, and pay $9\%aa$