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E9-30A Parts 1-4 lnoile Bond discount by the straight-line method) On Janarys were Inc., issued five-year, 7% bonds payable with a face value of $10,000,000.
E9-30A Parts 1-4 lnoile Bond discount by the straight-line method) On Janarys were Inc., issued five-year, 7% bonds payable with a face value of $10,000,000. The bon issued at 96 and pay interest on January 31 and July 31. Danvers Logistics, Inc., and discount by the straight-line method. Record (a) issuance of the bonds on January (b) the semiannual interest payment and amortization of bond discount on July 31, amortizes bond (c) the interest accrual and discount amortization on December 31,2016. 31, 2016 E9-30A. (Learning Objective 2: Measure cash amounts fo 2 r a bond payable (premium) 000 of 7% debenture bonds outstanding. The bonds were issued at 103 in 2016 and mature in bonds have annual interest payments. Requirements 1. How much cash did County Bank receive when it issued these bonds? 2. How much cash in total will County Bank pay the bondholders through the maturity date 2036. The of the bonds? 3. Calculate the difference between your answers to requirements 1 and 2. This difference represents County Bank's total interest expense over the life of the bonds 4. Compute County Bank's annual interest expense by the straight-line amortization method. Multiply this amount by 20. Your 20-year total should be the same as your answer to E9-31A. (Learning Objective 3: Issue bonds payable (discount); record interest payments and issue $2,000,000 of 3%, 10-year bonds payable On December 31, 2016, when the market interes requirement 3 the related bond amortization using the effective-interest method) Score Ltd. is authorized to rate is 7%, the company issues $1.600.000 of the bonds. Score Ltd. amortizes bond discount b tha effective interest method. The semiannual interest dates are June 30 and December 3
E9-30A Parts 1-4
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