Treat issued $775,000 of 10 year, 4.5% bonds payable at par on May 1, 2023. The...

 

 

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Treat issued $775,000 of 10 year, 4.5% bonds payable at par on May 1, 2023. The bonds pay interest each April 30 and October 31 and the company ends it's accounting year on December 31. a. Treat's bonds were issued at: b. When Treat issued its bonds, the market rate of interest was: c. Journalize the entries for: Issuance of the bonds on May 1, 2023 5/1/23 Payment of interest on October 31, 2023: 10/31/23 Accrual of interest at the end of the year: 12/31/23 Payment of interest on April 30, 2024: 4/30/24 DR CR Home Alone issued $475,000 of 10 year, 4% bonds payable on March 1, 2023. The bonds pay interest each February 28 and August 31 and the company ends its accounting year on December 31. a. If the market rate of interest is 5%, the bonds will be priced at: b. If the market rate of interest is 3%, the bonds will be priced at: c. Journalize the entries for: Issuance of the bonds at 99 on March 1, 2023: 3/1/23 DR Payment of interest and amortization of discount on August 31, 2023: 8/31/23 Accrual of interest and amortization of discount at December 31, 2023: 12/31/23 Payment of interest and amortization of discount on February 28, 2024: 2/28/24 CR Treat issued $775,000 of 10 year, 4.5% bonds payable at par on May 1, 2023. The bonds pay interest each April 30 and October 31 and the company ends it's accounting year on December 31. a. Treat's bonds were issued at: b. When Treat issued its bonds, the market rate of interest was: c. Journalize the entries for: Issuance of the bonds on May 1, 2023 5/1/23 Payment of interest on October 31, 2023: 10/31/23 Accrual of interest at the end of the year: 12/31/23 Payment of interest on April 30, 2024: 4/30/24 DR CR Home Alone issued $475,000 of 10 year, 4% bonds payable on March 1, 2023. The bonds pay interest each February 28 and August 31 and the company ends its accounting year on December 31. a. If the market rate of interest is 5%, the bonds will be priced at: b. If the market rate of interest is 3%, the bonds will be priced at: c. Journalize the entries for: Issuance of the bonds at 99 on March 1, 2023: 3/1/23 DR Payment of interest and amortization of discount on August 31, 2023: 8/31/23 Accrual of interest and amortization of discount at December 31, 2023: 12/31/23 Payment of interest and amortization of discount on February 28, 2024: 2/28/24 CR

Answer rating: 100% (QA)

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