Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

amentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false car 1 Issued $7,630,000 of five-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 12%, receiving cash

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
amentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false car 1 Issued $7,630,000 of five-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 12%, receiving cash of July 1. $7,349,212. Interest is payable semiannually on December 31 and June 30. Borrowed $430,000 by issuing a 10-year, 6% installment note to Intexicon Bank. The note requires annual payments of $58,423, with Oct. 1. the first payment occurring on September 30, Year 2. Dec. 31. Accrued $6,450 of interest on the installment note. The interest is payable on the date of the next installment note payment. Paid the semiannual interest on the bonds. The bond discount amortization of $28,079 is combined with the semiannual interest Dec. 31. payment. Year 2 Paid the semiannual interest on the bonds. The bond discount amortization of $28,079 is combined with the semiannual interest June 30. payment. Sept. 30. Paid the annual payment on the note, which consisted of interest of $25,800 and principal of $32,623. Dec. 31. Accrued $5,961 of interest on the installment note. The Interest is payable on the date of the next installment note payment. Paid the semiannual interest on the bonds. The bond discount amortization of $28,079 is combined with the semiannual interest Dec. 31 payment. Year 3 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $168,472 after payment of June 30. interest and amortization of discount have been recorded. (Record the redemption only.) Sept. 30. Paid the second annual payment on the note, which consisted of interest of $23,843 and principal of $34,580. Previous Check My Work All work saved. Emaco Save and Exit Submit Assignment for Grading 839 AM Assignment Main.do?invoker-StakeAssignmentSessionLocator=&inprogress-false 1. Joumalize the entries to record the foregoing transactions. For compound transactions, if an amount box does not require an entry, leave enter "o When required, round your answers to the nearest dollar. Date Account Debit Credit Year 1 July 1 Oct. 1 Dec. 31-Note Dec. 31-Bond Check My Work Pre WURET=&takeAssignmentSessionLocator &inprogress false Year 2 June 30 Sept. 30 Dec. 31-Note Dec. 31-Bond Year 2 June 20 checkMy Work All work saved. AssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Year 3 June 30 Sept. 30 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1 $ b. Year 2. Su 3. Determine the carrying amount of the bonds as of December 31. Year 2 Previous Check My Work She Assement for amentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false car 1 Issued $7,630,000 of five-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 12%, receiving cash of July 1. $7,349,212. Interest is payable semiannually on December 31 and June 30. Borrowed $430,000 by issuing a 10-year, 6% installment note to Intexicon Bank. The note requires annual payments of $58,423, with Oct. 1. the first payment occurring on September 30, Year 2. Dec. 31. Accrued $6,450 of interest on the installment note. The interest is payable on the date of the next installment note payment. Paid the semiannual interest on the bonds. The bond discount amortization of $28,079 is combined with the semiannual interest Dec. 31. payment. Year 2 Paid the semiannual interest on the bonds. The bond discount amortization of $28,079 is combined with the semiannual interest June 30. payment. Sept. 30. Paid the annual payment on the note, which consisted of interest of $25,800 and principal of $32,623. Dec. 31. Accrued $5,961 of interest on the installment note. The Interest is payable on the date of the next installment note payment. Paid the semiannual interest on the bonds. The bond discount amortization of $28,079 is combined with the semiannual interest Dec. 31 payment. Year 3 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $168,472 after payment of June 30. interest and amortization of discount have been recorded. (Record the redemption only.) Sept. 30. Paid the second annual payment on the note, which consisted of interest of $23,843 and principal of $34,580. Previous Check My Work All work saved. Emaco Save and Exit Submit Assignment for Grading 839 AM Assignment Main.do?invoker-StakeAssignmentSessionLocator=&inprogress-false 1. Joumalize the entries to record the foregoing transactions. For compound transactions, if an amount box does not require an entry, leave enter "o When required, round your answers to the nearest dollar. Date Account Debit Credit Year 1 July 1 Oct. 1 Dec. 31-Note Dec. 31-Bond Check My Work Pre WURET=&takeAssignmentSessionLocator &inprogress false Year 2 June 30 Sept. 30 Dec. 31-Note Dec. 31-Bond Year 2 June 20 checkMy Work All work saved. AssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Year 3 June 30 Sept. 30 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1 $ b. Year 2. Su 3. Determine the carrying amount of the bonds as of December 31. Year 2 Previous Check My Work She Assement for

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: William C. Boynton, Walter G. Kell

6th Edition

0471596876, 9780471596875

More Books

Students also viewed these Accounting questions

Question

4. Identify the stage of the road of trials in The Wizard of Oz.

Answered: 1 week ago