E15-10,E15-11,E15-13,E15-16 to solve these four exercises.
l uly on December 31, 2016, assuming this is Bight's year end. Prepare the journal entry for the payment of interest on April 1, 2017. Assume no reversing entries have been used. nnually nstructions (a) Assuming the market interest rate on January 1, 2017, was 7%, calculate the bond's issue price. b) Prepare an effective interest amortization table for this bond. E15.9 Messer Company issued $600,000 of 8%, 7-year bonds on January i 2017. The bonds pay interest Calcu prepa (LO 3 ELS-10 Korman Company issued $800,000 of 7%, 7-year bonds on January 1, 2017. The bonds pay interest annually Instructions (a) Assuming the market interest rate on January 1, 2017, was 8%, calculate the bond's issue p b) Prepare an effective interest amortization table for this bond. Calcu prepa sched (LO 3 rice E15-11 Western Inc. issues $800,000 of 5-year, 6% bonds on January 1, 2017, The bonds pay interest annually. Instructions (a) Calculate the issue price of the bonds using a market rate of 5% and record the bond issue. Calcul transa Prepare an effective interest amortization table for the bonds. G) Prepare the journal entries to record the first three interest payments. d Assuming Western has an October 31 year end, prepare the adjusting entry for interest on October 31, 2017. Els 12 Amlani Company issues S500,000 of5-year, 7% bonds on January i 2017. Interest is paid annually. Prepare issued a (LO 3) Instructions the market interest rat was9%on the date ofissue record the issue ofthe bonds. n r hpare an effective interest amortization table for the bonds. E15-17 The E15-13 1. Longhine Corporation redeemed $130,000 face value, 12% bonds on June 30, 2017, at 102. The bond Interest P Jan. 1, 20 July 1, 20 Jan. 1, 20 July 1, 20 Jan. 1,2 Two independent situations follow: Prepare entries for bond redemption. (LO 4) AP date was $117,500. The bonds pay annual interest, and the interest payment due on June 30, 2017, has been made and recorded 2. Tastove Inc. redeemed si 50,000 face value. i 2.5% bonds on lune 30, 2017, at 98. The bonds' amortized cost the redemption date was $151,000. The bonds pay annual interest, and the interest payment due on june 30 2017, has been made and recorded Instructions For each situation above, prepare the appropriate journal entry for the redemption of the bonds (a) Is this a Prepare bond interest and bedreder ption entries (LO 3,4) AP E15 14 Or January 1 2017 Ci ton ltd. issued S500000 of5%, 5 year bond The bonds were issued toy a market interest rate of 6% alt,year end isDecember 31 On anuary i 2019 immediately after makinga (b) What is (c) What is (d) Prepare (e) What ar the semi-annual interest payment, Chilton redeemed the bonds. A partial bond amortization is presented below E15-18 o note is repay Instructions (a) Prepare (b) Prepare (e) What ar Semi-Annual Interest Interest Bond Amortized Interest Period Payment Expense Amortization Jan. 1, 2017 July 1, 2017 Jan. 1, 2018 July 1, 2018 Jan. 1, 201S Cost $478,674 480,534 482,450 484,424 $12,500 $14,360 12,500 14416 12,500 14,474 12,500 14,533 $1,860 1,916 1,974 lanuary 1, 2019. (e) Prepare the journal entry to record the redemption of the bonds assuming they were l (d) Prepare the journal entry lu itc redeemed at 96 note payable to finance the construct E15-15 Cove Resort Corp, issued a 20-year, 7%, $240,000 mortgage a new building on I December 31. ton June 0 i payable. (LO 5) AP Decenbuiding on Dec21The terms provide for seml annual instalment payments on Prepare the journal entries to record the mortgage note payable and the first two instalment payments asuni the payment is: (a) a fixed principal payment of $6,000 (b) a blended payment of $11,239 Analyze instalment schedule and identify current payment 1E15-16 The following instalment puyment schedale is for an instalment note payable: and non-current portions Interest Perlod Cash Payment Interest Expense Reduction of Principa (LO 5) AP Jan. 1, 2017 Jan. 1, 2018 Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2021 Jan. 1, 2022 $23,097 23,097 23,097 23,097 4,095 3,145 2,147 1,100 $18,097 19,002 19,952 20,950 21,999 100,000 81,903 62,901 42,949 21,999 (a) Is this a fixed principal or blended payment schedule? (b) What is the interest rate on the note? c) Prepare the journal entry to record the first instalment payment. ) What are the non-current and current portions of the note at December 31, 2018? (d
