Exercise 10-2 (Static) Recording bond issuance at par, interest payments, and bond maturity LO P1

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% interest 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).

Record the issuance of bonds for cash on January 1.

Record the cash paid for the first semiannual interest payment on June 30.

Record the cash paid for the second semiannual interest payment on December 31.

Record the payment of the bonds at maturity. Assume semiannual interest is already recorded.

Exercise 10-4 (Static) Straight-Line: Amortization of bond discount LO P2

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.Prepar a straight-line amortization table for these bonds.

What is the amount of the discount on these bonds at issuance?

How much total bond interest expense will be recognized over the life of these bonds?

Prepar a straight-line amortization table for these bonds.

Exercise 10-9 (Static) Straight-Line: Amortization of bond premium LO P3

Quatro Co. 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.Prepar a straight-line amortization table for these bonds.