x Bond Issue B (A) Cash Interest Paid $600,000.0 (B) Period Interest Expense Period 12.0% x...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
x Bond Issue B (A) Cash Interest Paid $600,000.0 (B) Period Interest Expense Period 12.0% x (E) x 12.5% Ending 3/12 x 3/12 (C) Amort. (A) - (B) (D) (E) Carrying Value Unamortized $600,000 Balance (D) Apr. 1/18 $16,991 $583,009 Jul. $ 18,000 $18,219 $ 219 16,772 583,228 1/18 Apr. 1/26 18,000 18,569 569 5,236 594,764 Jul. 18,000 18,586 586 4,650 595,350 1/26 Oct. 18,000 18,605 605 4,045 595,955 1/26 Jan. 1/27 18,000 18,624 624 3,421 596,579 Apr. 1/27 18,000 18,643 643 2,778 597,222 Jul. 18,000 18,663 663 2,115 597,885 1/27 Oct. 1/27 18,000 18,684 684 1,431 598,569 Jan. 1/28 18,000 18,705 705 726 599,274 Apr. 18,000 18,726* 726 600,000 1/28 Totals $720,000 $736,991 $16,991 "Adjusted for rounding 2. Bond Issue B a. Were the bond B issued at a premium and/or discount? Issued at discount Issued at premium Issued at premium & discount b. Journalize the issuance of bond B on April 1, 2018. View transaction list Journal entry worksheet < Record the Issuance of bonds at a discount. Note: Enter debits before credits. Date April 01, 2018 General Journal Debit Credit c. What is the contract interest rate for the issue bond B? Contract interest rate d. Interest of how much is paid how often for bond B issued? Interest paid e. What is the term of bond B issue? Term of each bond issue year term f. Show how bond B would appear on the balance sheet under non-current liabilities at July 31, 2026. Balance Sheet (Partial) Non-current liablities g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2027. Total bond interest expense h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2027, at 97. Record the entries. x Bond Issue B (A) Cash Interest Paid $600,000.0 (B) Period Interest Expense Period 12.0% x (E) x 12.5% Ending 3/12 x 3/12 (C) Amort. (A) - (B) (D) (E) Carrying Value Unamortized $600,000 Balance (D) Apr. 1/18 $16,991 $583,009 Jul. $ 18,000 $18,219 $ 219 16,772 583,228 1/18 Apr. 1/26 18,000 18,569 569 5,236 594,764 Jul. 18,000 18,586 586 4,650 595,350 1/26 Oct. 18,000 18,605 605 4,045 595,955 1/26 Jan. 1/27 18,000 18,624 624 3,421 596,579 Apr. 1/27 18,000 18,643 643 2,778 597,222 Jul. 18,000 18,663 663 2,115 597,885 1/27 Oct. 1/27 18,000 18,684 684 1,431 598,569 Jan. 1/28 18,000 18,705 705 726 599,274 Apr. 18,000 18,726* 726 600,000 1/28 Totals $720,000 $736,991 $16,991 "Adjusted for rounding 2. Bond Issue B a. Were the bond B issued at a premium and/or discount? Issued at discount Issued at premium Issued at premium & discount b. Journalize the issuance of bond B on April 1, 2018. View transaction list Journal entry worksheet < Record the Issuance of bonds at a discount. Note: Enter debits before credits. Date April 01, 2018 General Journal Debit Credit c. What is the contract interest rate for the issue bond B? Contract interest rate d. Interest of how much is paid how often for bond B issued? Interest paid e. What is the term of bond B issue? Term of each bond issue year term f. Show how bond B would appear on the balance sheet under non-current liabilities at July 31, 2026. Balance Sheet (Partial) Non-current liablities g. Calculate the bond B interest expense that would appear on the income statement for the year ended July 31, 2027. Total bond interest expense h. Independent of (a) through (g), assume that bond B issues was retired on December 1, 2027, at 97. Record the entries.
Expert Answer:
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
Students also viewed these accounting questions
-
Use the attached "words.txt" file to store the words along with their ranks in an AVL tree. Then provide the user the option to search for any word. If the word exists the program displays the rank...
-
You have been hired by the Regional Real Estate Company to help them analyze real estate data. One of the companys Pacific region salespeople just returned to the office with a newly designed...
-
Suppose a consumer lives in two periods , with his income in period 1 as $100 and his income in period 2 as $150. If the rate of interest in the economy is 12%. Find the equilibrium level of...
-
A pollster claims that 12 voters were randomly selected from a population of 200,000 voters (30% of whom are Progressive Conservatives), and all 12 were Progressive Conservatives. The pollster claims...
-
Develop your own M-file function for the Gauss- Seidel method without relaxation based on Fig. 12.2, but change the first line so that it returns the approximate error and the number of iterations:...
-
Consider the signal \(f(t)=\sin (7 t)\). Use Matlab to obtain the discrete wavelets transform of this signal.
-
Venus Candy Company budgeted the following costs for anticipated production forSeptember 2010: Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory...
-
Consider the following: Net Income Depreciation Expense Gain on Sale of Land Increase in Inventory Increase in Wages Payable Payment of Dividends $51,900 36,000 22,500 6,150 18,450 6,000 Calculate...
-
Suppose you collected the following information of ABC corp. from the financial statements published in 2019. Entry Total Current Assets 14050001206000 Current Liabilities Notes Payable Earning...
-
How do lysosomes participate in cellular homeostasis through their roles in autophagy, endocytosis, and phagocytosis, and what implications does this multifaceted function have on cellular physiology...
-
What is the structural composition of lysosomes and how does it contribute to their functionality within the cell's intracellular environment?
-
8. Valuing Preferred Stock [LO1] Resnor, Inc., has an issue of preferred stock outstanding that pays a $5.50 dividend every year in perpetuity. If this issue currently sells for $108 per share, what...
-
Background : The buyer , Sarah Thompson , has entered into a contract to purchase a property from the seller , David Martinez . The contract stipulates that Sarah must obtain a satisfactory building...
-
What strategies are being explored to therapeutically modulate lysosomal function in the context of treating lysosomal storage disorders, neurodegenerative diseases, and cancer, and what challenges...
-
Evaluate two of the following consumer protection acts: 1. The Truth in Lending Act 2. Fair Credit Billing Act In your evaluation, answer the following questions Can this law be improved? If so, how...
-
Representative data read from a plot that appeared in the paper Effect of Cattle Treading on Erosion from Hill Pasture: Modeling Concepts and Analysis of Rainfall Simulator Data (Australian Journal...
-
True or False: Annual worth analysis is the most popular DCF measure of economic worth.
-
Consider a palletizer at a bottling plant that has a first cost of \($150,000,\) operating and maintenance costs of \($17,500\) per year, and an estimated net salvage value of \($25,000\) at the end...
-
True or False: Unless non-monetary considerations dictate otherwise, choose the mutually exclusive investment alternative that has the greatest annual worth over the planning horizon.
Study smarter with the SolutionInn App