On March 1, 2020, Sunray Management Ltd. issues 12.5 percent, 20-year bonds payable with a maturity value of $6,750,000. The bonds pay interest on February 28 and August 31. Sunray Management Ltd. amortizes premiums and discounts by the straight-line method. Required The 12.5 percent bonds issued when the market interest rate is 11.5 percent will be priced at They will be priced so that the yield to purchasers will approximate percent. Requirement 2. If the market interest rate is 13 percent when Sunray Management Ltd. issues its bonds, will the bonds be priced at para a premium, orata discount? Explain. The 12.5 percent bonds issued when the market interest rate is 13 percent will be prioed at They are in this market, so investors will pay to acquire them to thom Requirement 3. Assume that the issue price of the bonds is 97.00. Joumalize the bonds payable transactions a. Issuance of the bonds on March 1, 2020. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit 1 Accounts Mar. 00 b. Payment of interest and amortization of discount on Auoust 31, 2020. (Round vour answer to the nearest dollar Choose from any list or enter any number in the input fields and then continue to the next question. Uw by the straight-line method. ,100,000. The bonds pa Required will pay will pay V to acquire them. Requirement 3. Assume that the issue price of the bonds is 97.00. Journalize the bonds payable transactions Issuance of the bonds on March 1, 2020. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Debit Credit Accounts Payable Bonds Payable Cash b. Payment of Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable ur answer to the nearest dollar.) Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Un March 1, 2020, Sunray Management Ltd. issues 12.5 percent, 20-year bonds payable with a maturity value of $6,750,000. The bonds and August 31. Sunray Management Ltd. amortizes premiums and discounts by the straight-line method. Required b. Payment of interest and amortization of discount on August 31, 2020. (Round your answer to the nearest dollar.) Journal Entry Accounts Credit Accounts Payable Bonds Payable Cash c. Accrual of int Discount on Bonds Payable based on the totorest Expense Interest Payable Premium on Bonds Payable agement Ltd.'s year end. (Be sure to calculate any Credit Choose from any list or enter any number in the input fields and then continue to the next question. W US able with a maturity value of $6,750,000. The bonds pay interest on Februar y omont Lid. amortizes premiums and discounts by the straight-line method. Required c. Accrual of interest and amortization of discount on December 31, 2020, Sunray Management Lid's year end. (Be sure to calculate any discount or premiu based on the original amounts. Round your answer to the nearest dollar.) Journal Entry Accounts Debit Credit CA Accounts Payable Bonds Payable Cash d. Payment of in Discount on Bonds Payable Interest expen: Interest Expense Interest Payable Premium on Bonds Payable Date our answer to the nearest dollar. To avoid rounding errors, compute the Debit Credit 1 11 Choose from any list or enter any number in the input fields and then continue to the next question. 50 GAP 1 2 3 a me 4 13 ( BH 2 CH ( MacBook Air AULI, 2020, Sunray Management Ltd. issues 12.5 percent. 20-year bonds payable with a maturity value of $6,750,000. Th and August 31. Sunray Management Ltd. amortizos premiums and discounts by the stralohtaling method Required d. Payment of interest and amortization of discount on February 28, 2021. (Round your answer to the nearest dollar. To avoid Interest expense by balancing the debits with the credits.) l Journal Entry Accounts Debit Credit Accounts Payable Bonds Payable Cash Requirement 4 Discount on Bonds Payable parentheses ol Interest Expense Interest Payable Premium on Bonds Payable the Sunray Management Ltd. balance she Llabilitie Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 4. Report interest payable and bonds payable as they would appe parentheses or a minus sign for numbers to be subtracted.) Sunray Management Ltd. Partial Balance Sheet December 31, 2020 Liabilities Current liabilities Long-term liabilities: Choose from any list or enter any number in the input fields and then continue to th MacBook A Requirement 4. Report interest payable and bonds payable ast parentheses or a minus sign for numbers to be subtracted.) Sunray Management Ltd. Partial Balance Sheet December 31, 2020 Liabilities Current liabilities: Bonds payable Current liabilities: Discount on bonds payable Interest expense Interest payable Long-term liabilities Premium on bonds payable per in the input fields and then Mac On March 1, 2020, Sunray Management Ltd. issues 12.5 percent, 20-year bonds payable with a maturity value of $6,750,000. The bonds pay interest on February 28 and August 31. Sunray Management Ltd. amortizes premiums and discounts by the straight-line method Required Requirement 1. W the market interest rate is 11.5 percent when Sunray Management Ltd. issues its bonds, will the bonds be prioed at par, at a premium, or at a discount? Explain. The 12.5 percent bonds issued when the market interest rate is 11.5 percent will be priced at They will be priced so that the yield to purchasers will approximate percent decount Requirement 2. If the market interest rate is 13 percent when Sunray Management Ltd. Insue priood at par, at a premium, or at a discount? Explain. a premium. The 125 percent bonds issued when the market interest rate is 13 percent will be priced at par (maturity) value in this market, so investors will pay to acquire them. Requirement 3. Assume that the issue price of the bonds is 97.00. Journalize the bonds payable transactions W i de Exclude explanations from journal entries.) This Test: 50 pts possible On March 1, 2020, Sunray Management Ltd. Issue 12.5 percent, 20-year bonds payable with a maturity value of $6,750,000. The bonds pay interest on February 28 and August 31. Sunray Management Lid, amortizes premiums and dincounts by the straight-line method. Required Requirement 1. If the market interest rate is 11.5 percent when Sunray Management Ltd. Issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. The 12.5 percent bonds issued when the market interest rate is 11.5 percent will be priced at They will be priced so that the yield to purchasers will approximate percent. Requirement 2. If the market interest rate is 13 percent when Sunray Management Lid. Issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. The 12.5 percent bonds issued when the market interest rate is 13 percent will be proud at They are in this market, so investors will pay to acquire them Require of the bonds is 97.00. Journalize the bonds payable transactions less than maturity value a. Issuar (Record debits first, then credits. Exclude explanations from journal entries) maturity value Journal Entry more than maturity value - - Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question. MacBook Air