Record the sale of the bonds and first two interest payments for the following. On the...
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Record the sale of the bonds and first two interest payments for the following. On the date of authorization, March 1, 2008, the Ace Corporation issued 10-year, 8% percent bonds with a face value of $2.000.000,atface value. Interest is payable each September 1 and March On the date of authorization, May 1, 2013, the Ace Corporation issued 10-year. 11 percent bonds with a face value of $3,000,000 at 100. Interest is payable each November I and May 1. Sold $50,000, 7% bonds dated January 1 on January 1 for face value. Prepare the issuance entry and first two interest payments assuming straight line amortization. Interest is paid semi annually • Issued 2,000,000, 5 year, 10% bonds for 101 on date of the bond. Using straight line, prepare date of issuance and first two interest payments. • Assume as above, only bonds were issued at a discount of 97% . Issued 1,000,0000, 10 year, 12% bonds dated January 1 on January 1 for 103. Prepare the issuance and first two interest payments assuming straight line amortization. In this case, is the current market interest rate lower or higher than the stated rate? . Assume the same as above, only bonds were issued at 99. Record the sale of the bonds and first two interest payments for the following. On the date of authorization, March 1, 2008, the Ace Corporation issued 10-year, 8% percent bonds with a face value of $2.000.000,atface value. Interest is payable each September 1 and March On the date of authorization, May 1, 2013, the Ace Corporation issued 10-year. 11 percent bonds with a face value of $3,000,000 at 100. Interest is payable each November I and May 1. Sold $50,000, 7% bonds dated January 1 on January 1 for face value. Prepare the issuance entry and first two interest payments assuming straight line amortization. Interest is paid semi annually • Issued 2,000,000, 5 year, 10% bonds for 101 on date of the bond. Using straight line, prepare date of issuance and first two interest payments. • Assume as above, only bonds were issued at a discount of 97% . Issued 1,000,0000, 10 year, 12% bonds dated January 1 on January 1 for 103. Prepare the issuance and first two interest payments assuming straight line amortization. In this case, is the current market interest rate lower or higher than the stated rate? . Assume the same as above, only bonds were issued at 99.
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Bond Work sheet A Date General Journal Debit Credit Mar 1 2008 Cash 2000000 Bonds payable 2000000 To record issue of bonds at face value Sep 1 2008 In... View the full answer
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
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