Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

National Orthopedics Co, issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds mature on December 31,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
National Orthopedics Co, issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yleld was 10%. Interest is paid semiannually on June 30 and December 31. (FV.0f $1. PV of S1. EVA of $1. PVA of S1, FVAD.Of S1 and PVAD.080) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their Issuance by National on January 1, 2021. 3. Prepare an amortization schedule that determines interest at the effective rate each period 4. Prepare the journal entry to record Interest on June 30, 2021. 5. Prepare the appropriate journal entries at maturity on December 31, 2024 Required 1 Required 2 Required 3 Required 4 Required 5 Determine the price of the bonds at January 1, 2021. (Round final answers to the nearest whole dollar.) Table Values are based on: Amount Present Value Cash Flow Interest Principal Price of bonds Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the journal entry to record their issuance by National on January 1, 2021. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Round Intermediate calculations and final answers to the nearest whole dollar) View transaction list Journal entry worksheet Record the issuance of the bonds on January 1, 2021. Note: Enter debits before credits General Journal Dobit Credit Date January 01, 2021 Regulred 1 Required 2 Required 3 Required 4 Required 5 Prepare an amortization schedule that determines interest at the effective rate each period. (Round intermediate calculations and final answers to the nearest whole dollars) Cash Internat Bond Interest Expense Discount Amortization Carrying Valu Samlannual Intarant Perlod-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 06/30/2024 12/31/2024 Total Required 4 > Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the journal entry to record interest on June 30, 2021. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round Intermediate calculations and final answers to the nearest whole dollar) Vlow transaction llat Journal entry worksheet Record the interest expense on June 30, 2021. Note: Enter debits before credits General Journal Dobit Credit Dato June 30, 2021 Prepare the appropriate journal entries at maturity on December 31, 2024. (If no entry is required for a transaction/event, select "No Journal entry required in the first account field. Round intermediate calculations and final answers to the nearest whole dollar) View transaction let Journal entry worksheet 2 Record the interest expense on December 31, 2024 Note: Enter debit before credits General Journal Debit Credit Date December 31, 2024 Yorum

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

World Class Internal Audit Tales From My Journey

Authors: Norman Marks

1st Edition

1500791962, 978-1500791964

More Books

Students also viewed these Accounting questions