Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer both for automatic like, there both kinda shot wuestions Tano Company issues bonds with a par value of $85,000 on January 1, 2019. The

answer both for automatic like, there both kinda shot wuestions image text in transcribed
image text in transcribed
image text in transcribed
Tano Company issues bonds with a par value of $85,000 on January 1, 2019. The bonds annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of Issuance is 10%, and the bonds are sold for $80,684. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the amount of the discount on these bonds at issuance? Discount Required 2 > New pay stay on June and December The bondsve they are in toan Cable Table 3.2. Tobe and Table toden places, and we the rounded table values in wwwww en ny Conny 3 Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $35,000 par value and an annual contract rate of 10% and they mature in 10 years (Table B.1. Table B2 Table 83 and Table 8.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each separate situation. 1. The market rate at the date of issuance is 8% (a) Complete the below table to determine the bonds'issue price on January 1 bi Prepare the journal entry to record their issuance. 2. The market rate at the date of issuance is 10% (a) Complete the be on table to determine the bonds issue price on January 1 (b) Prepare the journal entry to record their issuance 3. The market rate at the date of issuance is 12% (a) Complete the below table to determine the ynds Issue price on January 1 b) Prepare the journal entry to record their issue. pe

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

Principles Of Accounting Volume 2 Managerial Accounting

Authors: OpenStax

1st Edition

0357364805, 9780357364802

More Books

Students also viewed these Accounting questions

Question

I dont trust that theyll keep my complaint confi dential.

Answered: 1 week ago