{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-08T06:17:19-04:00", "answer_date": "2024-06-08 06:17:19", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2459120", "url": "\/study-help\/questions\/on-january-1-year-1-young-company-issued-2459120", "question_creation_date_js": "2024-06-08T06:17:19-04:00", "question_creation_date": "Jun 08, 2024 06:17 AM", "meta_title": "[Solved] On January 1 , Year 1 , Young Company iss | SolutionInn", "meta_description": "Answer of - On January 1 , Year 1 , Young Company issued bonds with a face value of $ 1 2 8 , 0 0 0 , a stated rate of interest of | SolutionInn", "meta_keywords": "january,1,year,young,company,issued,bonds,face,value,$,2,8", "question_title_h1": "On January 1 , Year 1 , Young Company issued bonds with a face value of $ 1 2 8 , 0 0 0 ,", "question_title": "On January 1 , Year 1 , Young Company issued bonds with", "question_title_for_js_snippet": "On January 1 , Year 1 , Young Company issued bonds with a face value of $ 1 2 8 , 0 0 0 , a stated rate of interest of 1 2 percent, and a 1 0 year term to maturity Interest is payable in cash on December 3 1 of each year The effective rate of interest was 1 1 percent at the time the bonds were issued The bonds sold for $ 1 3 5 , 5 3 8 Young used the effective interest rate method to amortize the bond premium Required a Determine the amount of the premium on the day of issue b Determine the amount of interest expense recognized on December 3 1 , Year 1 c Determine the carrying value of the bond liability on December 3 1 , Year 1 d Provide the general journal entry necessary to record the December 3 1 , Year 1 , interest expense ", "question_description": "
On January <\/span>1<\/mn>,<\/mo><\/mrow><\/math> Year <\/span>1<\/mn>,<\/mo><\/mrow><\/math> Young Company issued bonds with a face value of $<\/span>1<\/mn>2<\/mn>8<\/mn>,<\/mo>0<\/mn>0<\/mn>0<\/mn>,<\/mo><\/mrow><\/math> a stated rate of interest of <\/span>1<\/mn>2<\/mn><\/mrow><\/math> percent, and a <\/span>1<\/mn>0<\/mn>-<\/mo><\/mrow><\/math>year term to maturity. Interest is payable in cash on December <\/span>3<\/mn>1<\/mn><\/mrow><\/math> of each year. The effective rate of interest was <\/span>1<\/mn>1<\/mn><\/mrow><\/math> percent at the time the bonds were issued. The bonds sold for $<\/span>1<\/mn>3<\/mn>5<\/mn>,<\/mo>5<\/mn>3<\/mn>8<\/mn>.<\/mo><\/mrow><\/math> Young used the effective interest rate method to amortize the bond premium.<\/span> <\/div>
<\/span><\/div>
Required<\/span><\/div>
a<\/span>.<\/mo><\/mrow><\/math> Determine the amount of the premium on the day of issue.<\/span> <\/div>
b<\/span>.<\/mo><\/mrow><\/math> Determine the amount of interest expense recognized on December <\/span>3<\/mn>1<\/mn>,<\/mo><\/mrow><\/math> Year <\/span>1<\/mn>.<\/mo><\/mrow><\/math> <\/div>
c<\/span>.<\/mo><\/mrow><\/math> Determine the carrying value of the bond liability on December <\/span>3<\/mn>1<\/mn>,<\/mo><\/mrow><\/math> Year <\/span>1<\/mn>.<\/mo><\/mrow><\/math> <\/div>
d<\/span>.<\/mo><\/mrow><\/math> Provide the general journal entry necessary to record the December <\/span>3<\/mn>1<\/mn>,<\/mo><\/mrow><\/math> Year <\/span>1<\/mn>,<\/mo><\/mrow><\/math> interest expense.<\/span> <\/div><\/span> <\/div><\/div>", "transcribed_text": "", "related_book": { "title": "Cornerstones of Managerial Accounting", "isbn": "324660138, 978-0324660135", "edition": "3rd Edition", "authors": "Mowen, Hansen, Heitger", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/94.jpg", "uri": "\/textbooks\/cornerstones-of-managerial-accounting-3rd-edition-94", "see_more_uri": "" }, "free_related_book": { "isbn": "1981032878", "uri": "\/textbooks\/credit-repair-how-to-repair-your-credit-all-by-yourself-a-beginners-guide-to-better-credit-1st-edition-9781981032877", "name": "Credit Repair How To Repair Your Credit All By Yourself A Beginners Guide To Better Credit", "edition": "1st Edition" }, "question_posted": "2024-06-08 06:17:19", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/for-the-quarter-ended-march-31-2011-noble-company-accumulates", "description": "For the quarter ended March 31, 2011, Noble Company accumulates the following sales data for its product, Garden-Tools: $310,000 budget; $304,000 actual. 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