Duval Company issues four-year bonds with a $100,000 par value on January 1,2020 , at a price of $95,952. The annual contract rate is 7\%, and interest is paid semiannually on June 30 and December 31. 2. Prepare journal entries to record the first two interest payments. Journal entry worksheet Record the interest payment and discount amortization on December 31, 2020. Note: Enter debits before credits. Tano Company issues bonds with a par value of $180,000 on January 1,2020 . 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 $170,862. 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. What is the amount of the discount on these bonds at issuance? No-Toxic-Toys currently has $200,000 of equity and is planning an $80,000 expansion to meet increasing demand for its product. The company currently earns $50,000 in net income, and the expansion will yield $25,000 in additional income before any interest expense. The company has three options: (1) do not expand, (2) expand and issue $80,000 in debt that requires payments of 8% annual interest, or (3) expand and raise $80,000 from equity financing. For each option, compute (a) net income and (b) return on equity (Net Income Equity). Ignore any income tax effects. Note: Round "Return on equity" to 1 decimal place. [The following information applies to the questions displayed below.] On January 1, 2020, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523, consisting of accrued interest and principal on December 31 of each year from 2020 through 2023. Prepare an amortization table for this installment note. Note: Round all amounts to the nearest whole dollar. Duval Company issues four-year bonds with a $100,000 par value on January 1,2020 , at a price of $95,952. The annual contract rate is 7\%, and interest is paid semiannually on June 30 and December 31. Prepare journal entries to record the first two interest payments. Journal entry worksheet Record the interest payment and discount amortization on June 30, 2020. Note: Enter debits before credits. Brussels Enterprises issues bonds at par dated January 1, 2020, that have a $3,400,000 par value, mature in four years, and pay 9% nterest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2023 (assume semiannual interest is already recorded). Journal entry worksheet Record the issuance of bonds for cash on January 1. Note: Enter debits before credits. On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1 , (b) the first interest payment on June 30, and (c) th second interest payment on December 31. 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102. Complete this question by entering your answers in the tabs below. How much interest will Boston pay (in cash) to the bondholders every six months? Tyrell Company issued callable bonds with a par value of $10,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $10,500 ) to bondholders to retire the bonds. On July 1, Tyrell exercises the call option. The call option is exercised after the semiannual interest is paid the day before on June 30. Record the entry to retire the bonds under each separate situation. 1. The bonds have a carrying value of $9,000. 2. The bonds have a carrying value of $11,000. Journal entry worksheet Record the retirement of the bonds assuming the bonds have a carrying value of $9,000. Duval Company issues four-year bonds with a $100,000 par value on January 1,2020 , at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31. Prepare the journal entry for maturity of the bonds on December 31, 2023 (assume semiannual interest is already recorded). Journal entry worksheet Record the entry for payment of the bonds at maturity. (Assume semiannual interest is already recorded). Note: Enter debits before credits. Quatro Company issues bonds dated January 1,2020 , with a par value of $400,000. The bonds' annual contract rate is 13%, 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 12%, and the bonds are sold for $409,850. 1. What is the amount of the premium 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. Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1 . (b) The first interest payment on June 30. (c) The second interest payment on December 31. Required information [The following information applies to the questions displayed below.] Duval Company issues four-year bonds with a $100,000 par value on January 1,2020 , at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31. 1. Prepare a straight-line amortization table for these bonds. Journal entry worksheet Record the payment of the bonds at maturity. Assume semiannual interest is already recorded. Note: Enter debits before credits