On June 30, 2020, the market interest rate is 4.5% Family Enterprises issues $515,000 of 5.5%,...
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On June 30, 2020, the market interest rate is 4.5% Family Enterprises issues $515,000 of 5.5%, 18-year bonds at 113 944 The bonds pay interest on June 30 and December 31. Family amortizes bonds by the affective interest method Requirements 1. Prepare a bond amortization table for the first four semi-annual interest periods 2. Record issuance of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the semi-annual interest payment on June 30, 2021 Requirement 1. Prepare a bond amortization table for the first four semi-annual interest periods (Round your answers to the nearest whole dollar.) Family Enterprises Amortization Table Semi-Annual Interest Date: June 30, 2020 Dec. 31, 2020 June 30, 2021 Dec. 31, 2021 A Interest Payment (2.75% of Maturity B Value) Interest Expense (2.25% of Preceding Bond Carrying Amount) C Premium Amortization (A-B) D E Premium Account Bond Carrying Amount Balance (D.C) ($515,000+D) June 30, 2022 Requirement 2. Record issuance of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the semi-annual interest payment on June Explanations are not required. Round your answers to the nearest whole number.) Recce of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the sem annual interest payment on June 30, 2021 Record debies first, then credits Explanations are not required. Round your answers to the nearest whole number) Start by recording the issuance of the bonds on June 30, 2020. Date June 30, 2020 Accounts Record the semi-annual interest payment on December 31, 2020 Date: Dec 31, 2020 Accounts Record the seme annual interest payment on June 30, 2021 Date June 30, 2021 Accounts Debit Credit Debit Credit Dobit Credit on the payment of interest at December 31, 2020, and the se Start by recording the issuance of the bonds on June 30, 2020. Date June 30, 2020 Accounts Record the semi-annual interest payment on December 31, 2020 Date Dec. 31, 2020 Accounts Record the semi-annual interest payment on June 30, 2021. Date June 30, 2021 Accounts Debit Credit Debit Credit Debit Credit On June 30, 2020, the market interest rate is 4.5% Family Enterprises issues $515,000 of 5.5%, 18-year bonds at 113 944 The bonds pay interest on June 30 and December 31. Family amortizes bonds by the affective interest method Requirements 1. Prepare a bond amortization table for the first four semi-annual interest periods 2. Record issuance of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the semi-annual interest payment on June 30, 2021 Requirement 1. Prepare a bond amortization table for the first four semi-annual interest periods (Round your answers to the nearest whole dollar.) Family Enterprises Amortization Table Semi-Annual Interest Date: June 30, 2020 Dec. 31, 2020 June 30, 2021 Dec. 31, 2021 A Interest Payment (2.75% of Maturity B Value) Interest Expense (2.25% of Preceding Bond Carrying Amount) C Premium Amortization (A-B) D E Premium Account Bond Carrying Amount Balance (D.C) ($515,000+D) June 30, 2022 Requirement 2. Record issuance of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the semi-annual interest payment on June Explanations are not required. Round your answers to the nearest whole number.) Recce of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the sem annual interest payment on June 30, 2021 Record debies first, then credits Explanations are not required. Round your answers to the nearest whole number) Start by recording the issuance of the bonds on June 30, 2020. Date June 30, 2020 Accounts Record the semi-annual interest payment on December 31, 2020 Date: Dec 31, 2020 Accounts Record the seme annual interest payment on June 30, 2021 Date June 30, 2021 Accounts Debit Credit Debit Credit Dobit Credit on the payment of interest at December 31, 2020, and the se Start by recording the issuance of the bonds on June 30, 2020. Date June 30, 2020 Accounts Record the semi-annual interest payment on December 31, 2020 Date Dec. 31, 2020 Accounts Record the semi-annual interest payment on June 30, 2021. Date June 30, 2021 Accounts Debit Credit Debit Credit Debit Credit
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Financial Accounting
ISBN: 9780135433065
7th Canadian Edition
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin
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