Beedle issued a 10-year bond to Aeron Company on 1/1/20X6. The bonds have a 6% annual...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665889ea6698f_506665889ea5de02.jpg)
Transcribed Image Text:
Beedle issued a 10-year bond to Aeron Company on 1/1/20X6. The bonds have a 6% annual interest rate and pay interest semi-annually on June 30 and December 31. The market rate of interest on 1/1/20X6 for bonds of similar risk was 5% (annual). The face value of the bonds purchased was $200,000. The fair value of the bonds of the bonds at December 31 was as follows: $ 213,200 12/31/20X6 $ 213,300 12/31/20X7 $212,000 12/31/20X8 Assume Beedle does not make any special elections regarding the reporting of the bonds. Beedle prepares annual financial statements and completes adjusting entries at the end of the year. Beedle has no debt other than this bond. 1. Compute the issue price of the bonds. Show and label any computations or steps (for possible partial credit). 2. Complete an amortization schedule through 20X9 (8 payments) for the bonds in excel. Round (or truncate) dollar figures to the nearest dollar. 3. Show the journal entry recorded by Beedle on 1/1/20X6. 4. What amount is in each of these accounts after all of the 20X6 entries are completed? (Issuance, 2 payments and adjusting entries, if any.) Label each balance as debit or credit. You might want to use t-accounts to track these (I would), but just give me the ending balances, please.) A. Bond payable B. Discount or premium C. Fair value adjustment on Bond payable D. Interest expense 5. Beedle pays Aeron $212,000 on 12/31/20X8 to retire the bonds. Assume all regular entries are recorded before the retirement transaction. Record the journal entry by Beedle for the bond retirement transaction. Beedle issued a 10-year bond to Aeron Company on 1/1/20X6. The bonds have a 6% annual interest rate and pay interest semi-annually on June 30 and December 31. The market rate of interest on 1/1/20X6 for bonds of similar risk was 5% (annual). The face value of the bonds purchased was $200,000. The fair value of the bonds of the bonds at December 31 was as follows: $ 213,200 12/31/20X6 $ 213,300 12/31/20X7 $212,000 12/31/20X8 Assume Beedle does not make any special elections regarding the reporting of the bonds. Beedle prepares annual financial statements and completes adjusting entries at the end of the year. Beedle has no debt other than this bond. 1. Compute the issue price of the bonds. Show and label any computations or steps (for possible partial credit). 2. Complete an amortization schedule through 20X9 (8 payments) for the bonds in excel. Round (or truncate) dollar figures to the nearest dollar. 3. Show the journal entry recorded by Beedle on 1/1/20X6. 4. What amount is in each of these accounts after all of the 20X6 entries are completed? (Issuance, 2 payments and adjusting entries, if any.) Label each balance as debit or credit. You might want to use t-accounts to track these (I would), but just give me the ending balances, please.) A. Bond payable B. Discount or premium C. Fair value adjustment on Bond payable D. Interest expense 5. Beedle pays Aeron $212,000 on 12/31/20X8 to retire the bonds. Assume all regular entries are recorded before the retirement transaction. Record the journal entry by Beedle for the bond retirement transaction.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
A 2.40-kg, 50.0-cm-Iong uniform bar has a small 1.l0-kg mass glued to its left end and a small 2.20-kg mass glued to the other end. You want to balance this system horizontally on a fulcrum placed...
-
Using Currency Futures. a. How can currency futures be used by corporations? b. How can currency futures be used by speculators?
-
Your supervisor has asked you to research a potential tax deduction for a client, Nancy Fradette. Nancy is a seat-filler at a number of the award shows that are filmed in the greater Los Angeles...
-
14) A company is considering building a manufacturing plant. They determine the weekly production cost at site A to be A(x) = 3x2 while the production cost at site B is B(x) = 8x + 3, where x...
-
A cash flow sequence has a receipt of $8,000 today, followed by a disbursement of $6,000 at the end of this year and again next year, and then a receipt of $3, 828 three years from now. The MARR is...
-
1. What are Azure regions, list the region ones in the middle east? 2. What are special Azure regions, list two of them/ 3. What are availability zones? 4. What is region pairs? 5. List three...
-
1) What is virtualization in cloud computing with example? 2) What are the advantages and disadvantages of virtualization? 3) What are remote access tools in cloud computing?
-
The trial balance of Dot Company as on December 31, 2017 is as follows: Dot Company Furniture...... Accumulated depreciation-Furniture..... Accounts receivables Cash. Prepaid insurance. Trial Balance...
-
FEEDING MATURITY YOUNG 1. There are six species of animals in an area at the end of Thunder Bay. The area is wooded land covering rolling hills with two small rivers. Most of the area is surrounded...
-
The following information is available for Canberra Ltd. Income statement for Canberra Ltd for the period ended 30 June 2019 Sales revenue 80,000 Cost of goods sold (48,000) Gross profit 32,000...
-
58. In which of the following configuration will liquid level change? (Water does not come out or oil does not enter vessel):- Oit 12.5m 13 O Ol (0 Oil Water Oil Waer Water Water2 50
-
The appropriate general ledger account number must be keyed for each department when entering purchase order, voucher, and sales invoice transactions. (True/False)
-
What is the total of the Invoice Amount column shown on the voucher register report for the month of March?
-
What is the total of the Invoice Amount column shown on the sales invoice register report for the month of March?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App