Question
HW 9 4 ISSUING BONDS Issuance of $800,000, 5-year, 8% payable annually (market rate 12%) for cash of $684,627 on 1/1/07 Were these bonds issued
HW 9 4
ISSUING BONDS
Issuance of $800,000, 5-year, 8% payable annually (market rate 12%) for cash of $684,627 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of the bonds:
Complete the following interest schedule (assuming straight-line amortization):
|
Date | Cash Payment of Interest |
Interest Expense |
Amortization of Discount | Carrying Value (Net Liability) |
| 1/1/2007 | None | None | None |
|
| 12/31/2007 |
|
|
|
|
| 12/31/2008 |
|
|
|
|
| 12/31/2009 |
|
|
|
|
| 12/31/2010 |
|
|
|
|
| 12/31/2011 |
|
|
|
|
Prepare the journal entry to record the first payment of interest on 12/31/2007:
HW 9 5
ISSUING BONDS
Issuance of $1,200,000, 5-year, 10% payable annually (market rate 8%) for cash of $1,295,844 on 1/1/07
Were these bonds issued at a discount or at a premium? Why?
Prepare the journal entry to record the issuance (sale) of the bonds:
Complete the following interest schedule (assuming straight-line amortization):
|
Date | Cash Payment of Interest |
Interest Expense |
Amortization of Premium | Carrying Value (Net Liability) |
| 1/1/2007 | None | None | None |
|
| 12/31/2007 |
|
|
|
|
| 12/31/2008 |
|
|
|
|
| 12/31/2009 |
|
|
|
|
| 12/31/2010 |
|
|
|
|
| 12/31/2011 |
|
|
|
|
Prepare the journal entry to record the first payment of interest on 12/31/2007:
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Integrated Auditing Of ERP Systems
Authors: Yusufali F. Musaji
1st Edition
0471235180, 978-0471235187
