On December 31, 2018, Zugaboo Corporation issues 6%, 10-year convertible bonds payable with a face value of $3,000,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 10%. Zugaboo amortizes bond discounts using the effective-interest method.
n December 31, 2018, Zugaboo Corporation issues 6%, 10-year convertible bonds payable with a face value of $3,000, The se annual rest dates are June 30 and December 31. The market interest rate is 10% Zugaboo amortizes bond discounts using the effective-interest method Read the requirements Requirement 1. Use the PV function in Excef to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ Requirement 2. Prepare an effective-interest method amortization table for the first four semiannual interest periods. (Round your answers to the nearest whole dollar.) Zugaboo Corporation Amortization Table at nterest Semiannual Discount Discount Account Bond Carrying Interest DatePayment Interest Expense Amortization Balance Amount 12-31-2018 6-30-2019 12-31-2019 6-30-2020 12-31-2020 ue On Decembe 31. The market interest rate is 10%. Zugaboo amortizes bond discounts using the effective-interest method Read the requirements Requirement 3. Journalize the following transactions. (Record debits first, then credits. Exclude explanations from all journal entries.) a. Record the issuance of the bonds on December 31, 2018. Credit Convertible Bonds Payable. (Round your answers to the nearest whole dollar.) r 31, 2018, Zugaboo Corporation issues 696, 10-year convertible bonds payable with a face value of $3,000,000. The semiannual interest dates are June 30 and December Journal Entry Date Accounts Credit Debit 2018 Dec 31 b. Record the payment of interest and amortization of the bonds on June 30, 2019. (Round your answers to the nearest whole dollar.) Journal Entry Date Accounts Credit Debit 2019 30 Jun On December 31, 2018, Zugaboo Corporation issues 696, 10-year convertible bonds payable with a face value of $3,000,000. The s emiannual interest dates are June 30 and December 31. The market interest rate is 10%. Zugaboo amortizes bond discounts using the effective-interest method. Read the fequirements c. Record the payment of interest and amortization of the bonds on December 31, 2019. (Round your answers to the nearest whole dollar.) Journal Entry Date 2019 Dec 3 Accounts Debit Credit d. Record the conversion by the bondholders on July 1, 2020, of bonds with a total face value of $1,200,000 into 90,000 shares of Zugaboo's $1-par common stock. (Round your answers to the nearest whole dollar.) Journal Entry Debit Credit Date Accounts 2020 Jul 1 Requirement 4. Show how Zugaboo would report the remaining bonds payable on its balance sheet at December 31, 2020. (Calculate the discount by multiplying the discount calculated in the original amortization table by the fraction of bonds remaining. Round your answers to the nearest whole dollar.) Zugaboo Corporation Partial Balance Sheet December 31, 2020 Less: Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Use the PV function in Exce to calculate the issue price of the bonds. 2. Prepare an effective-interest method amortization table for the first four semiannual interest periods. 3. Journalize the following transactions: a. Issuance of the bonds on December 31, 2018. Credit Convertible b. Payment of interest and amortization of the bond discount on June 30, c. Payment of interest and amortization of the bond discount on d. Conversion by the bondholders on July 1, 2020, of bonds with a total Bonds Payable. 2019. December 31, 2019. face value of $1,200,000 into 90,000 shares of Zugaboo's $1-par common stock. 4. Show how Zugaboo would report the remaining bonds payable on its balance sheet at December 31, 2020 PrintDone
