Question
I need help on all of these. please dont skip any thank you On December 31, 2016, P. Star Corporation issued $740,000, 9%, 20-year bonds
I need help on all of these. please dont skip any thank you
On December 31, 2016, P. Star Corporation issued $740,000, 9%, 20-year bonds for $996,576 cash when the market rate of interest was 6%. The bonds pay interest semi-annually each June 30 and December 31. P. Star uses the effective interest method of amortization to amortize any premium or discount.
Identify the following information:
Face Value
Stated Rate of Interest
Annual Stated Interest
Semi-Annual Stated Interest
Price of the Bonds Premium or Discount (circle one)
Give the journal entry to record the issue of the bonds on december 31. 2016
Prepare an effective interest amortization table through December 31, 2018 ( the first four interest payment dates )
give the journal entry required on the first interest payment date june 30 2017
compute the following amounts
interst expense to be reported on the 2017 income statement
interest expense to be reported on the 2018 income statement
total intertest expense over the life of the bond
total interest expense over the life of the bond if the straight line method of amoritzation had been used
indidicate the presnetation of the bond liability on the dec.31.2018 balance sheet
please do not leave anything out. I will notice it and downvote your answer. thanks in advance
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