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On January 1, 2013, Lowry Company issued eight-year bonds with a face value of $500,000 and a stated interest rate of 12%, payable semiannually on
On January 1, 2013, Lowry Company issued eight-year bonds with a face value of $500,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The market rate for bonds of this type would be 10%. REQUIRED: (a) Calculate the issue price of the bonds and the journal entry to record the issuance. (b) Prepare the amortization table for the bonds for January 1, 2013- December 31, 2015. (c) Prepare the necessary journal entry at December 31, 2013. (d) Prepare the necessary journal entry at June 30, 2015.
On January 1, 2013, Lowry Company issued eight-year bonds with a face value of $500,000 and a stated interest rate of 12%,
payable semiannually on June 30 and December 31. The market rate for bonds of this type would be 10%.
REQUIRED:
(a) Calculate the issue price of the bonds and the journal entry to record the issuance.
(b) Prepare the amortization table for the bonds for January 1, 2013- December 31, 2015.
(c) Prepare the necessary journal entry at December 31, 2013.
(d) Prepare the necessary journal entry at June 30, 2015.
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