Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

have to be done on excel Part 1 - Bonds 1. $600,000 on January 1, 2020. The bonds mature on December 31, 2026. The market

have to be done on excel
image text in transcribed
image text in transcribed
Part 1 - Bonds 1. $600,000 on January 1, 2020. The bonds mature on December 31, 2026. The market yield for bonds National Company issued a 7.5.2.year bond, dated January 1, 2020 with a face amountal 31. REQUIRED: 4. Determine the price of the bonds at January 1, 2020 (be certain to include all of the "Given" information as discussed in class). b. Prepare a bond amortization table using the effective interest method (as reviewed in class), and malce certain to obtain totals for the columns of Cash Interest Paid, Interest Expense, and Premium Amortization Prepare the Journal entry to record their issuance by National Company on January 1, 2020. d. Prepare the Journal entry recording the first interest payment on June 30, 2020. e. Prepare the journal entry recording the interest payment on December 31, 2020. Prepare journal entries at maturity on December 31, 2026. & Prepare the journal entry to record the retirement of the bond at a call pri of $640,000 on January 1, 2023 h. Instead of retirement of the bond as described in "g" above, assume the bond was retired @108 call price on January 1, 2023. Prepare the journal entry to record this retirement of the bond. f. Part 2 -- Installment note: 2. On January 1, 2020 National Company signed a $500,000, 7% installment note to be repaid with 8 equal annual installments to be first made on December 31, 2020, and then every December 31 thereafter. REQUIRED: a. Determine the amount of each annual payment. b. Prepare an amortization table for this installment note (as reviewed in class). c Prepare the journal entry for the issuance of the installment note. d. Prepare the journal entry for the first payment on the note. IMPORTANT: You are to use four spreadsheets for the solutions to these two problems. The first sheet is for the Bond amortization table including the "Given" information and the determination of the value of the bond. The second sheet is for recording all of the journal entries for the bond. The third sheet is for the amortization table of the installment note including the "Given" information and the determination of the annual cash payments. The fourth sheet is for the journal entries for the installment note. Also, you need to label the sheets properly. PLEASE MAKE CERTAIN TO APPROPRIATELY LABEL THE TAB FOR EACH OF THE FOUR SHEETS

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Order

Authors: Mahmoud Ezzamel

1st Edition

0415482615, 978-0415482615

More Books

Students also viewed these Accounting questions

Question

=+c) What is/are the response(s)?

Answered: 1 week ago