2 Metlock Ltd issued $694,200 of 15 year, 7 5 bonds on January 1, 2018, when the market interest rate was 6 5 The cash received at the issuance of the bond was $760,086 24 Interest is payable semi annually on July 1 and January 1 Metlock has a December 31 year end Prepare bond amortization schedule for the first four interest periods, using the effective interest method (Round answers to 2 decimal places, e g 15 75 ) METLOCK LTD Bond Premium Amortization Schedule Effective Interest Method Semi Annual Interest Period Interest Payment Interest Expense Amortization Bond Amortized Cost Issue Date, Jan 1, 2018 $ July 1, 2018 $ $ $ $ Dec 31, 2018 (accrual) July 1, 2019 Dec 31, 2019 (accrual) Record the issue of the bonds and the first interest payment (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts Round answers to 2 decimal places, e g 15 75 ) Date Account Titles and Explanation Debit Credit Jan 1 July 1 Record the accrual of the interest on December 31, 2018 (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts Round answers to 2 decimal places, e g 15 75 ) Date Account Titles and Explanation Debit Credit Dec 31 Show the balance sheet presentation of the bonds at December 31, 2018 METLOCK LTD Balance Sheet (Partial) December 31, 2018For the Year Ended December 31, 2018For the Month Ended December 31, 2018 Total AssetsCurrent LiabilitiesLong Term InvestmentsTotal Current AssetsTotal Non Current LiabilitiesProperty, Plant and EquipmentNon Current LiabilitiesShort Term InvestmentsTotal Liabilities and Shareholders' EquityShareholders' EquityTotal Shareholders' EquityTotal Current LiabilitiesCurrent AssetsTotal Property, Plant and Equipment Current Portion of Bonds Payable Cash Bond Interest Expense Interest Payable Bonds Payable $ Long Term InvestmentsTotal Non Current LiabilitiesShareholders' EquityShort Term InvestmentsTotal Shareholders' EquityProperty, Plant and EquipmentTotal Property, Plant and EquipmentTotal Current AssetsTotal AssetsTotal Current LiabilitiesTotal Liabilities and Shareholders' EquityCurrent LiabilitiesCurrent AssetsNon Current Liabilities Cash Current Portion of Bonds Payable Bond Interest Expense Interest Payable Bonds Payable $

Question

2  Metlock Ltd  issued $694,200 of 15 year, 7 5  bonds on January 1, 2018, when the market interest rate was 6 5   The cash received at the issuance of the bond was $760,086 24  Interest is payable semi annually on July 1 and January 1  Metlock has a December 31 year end  Prepare bond amortization schedule for the first four interest periods, using the effective interest method  (Round answers to 2 decimal places, e g  15 75 ) METLOCK LTD  Bond Premium Amortization Schedule Effective Interest Method Semi Annual Interest Period Interest Payment Interest Expense Amortization Bond Amortized Cost Issue Date, Jan  1, 2018 $ July 1, 2018 $ $ $ $ Dec  31, 2018 (accrual) July 1, 2019 Dec  31, 2019 (accrual) Record the issue of the bonds and the first interest payment  (Credit account titles are automatically indented when the amount is entered  Do not indent manually  If no entry is required, select  No Entry  for the account titles and enter 0 for the amounts  Round answers to 2 decimal places, e g  15 75 ) Date Account Titles and Explanation Debit Credit Jan  1 July 1 Record the accrual of the interest on December 31, 2018  (Credit account titles are automatically indented when the amount is entered  Do not indent manually  If no entry is required, select  No Entry  for the account titles and enter 0 for the amounts  Round answers to 2 decimal places, e g  15 75 ) Date Account Titles and Explanation Debit Credit Dec  31 Show the balance sheet presentation of the bonds at December 31, 2018  METLOCK LTD  Balance Sheet (Partial) December 31, 2018For the Year Ended December 31, 2018For the Month Ended December 31, 2018 Total AssetsCurrent LiabilitiesLong Term InvestmentsTotal Current AssetsTotal Non Current LiabilitiesProperty, Plant and EquipmentNon Current LiabilitiesShort Term InvestmentsTotal Liabilities and Shareholders' EquityShareholders' EquityTotal Shareholders' EquityTotal Current LiabilitiesCurrent AssetsTotal Property, Plant and Equipment Current Portion of Bonds Payable Cash Bond Interest Expense Interest Payable Bonds Payable $ Long Term InvestmentsTotal Non Current LiabilitiesShareholders' EquityShort Term InvestmentsTotal Shareholders' EquityProperty, Plant and EquipmentTotal Property, Plant and EquipmentTotal Current AssetsTotal AssetsTotal Current LiabilitiesTotal Liabilities and Shareholders' EquityCurrent LiabilitiesCurrent AssetsNon Current Liabilities Cash Current Portion of Bonds Payable Bond Interest Expense Interest Payable Bonds Payable $

Accepted Answer

The Answer is in the image, click to view ...

Question

2. Metlock Ltd. issued $694,200 of 15-year, 7.5% bonds on January 1, 2018, when the market interest rate was 6.5%. The cash received at the

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question