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On the first day of its fiscal year, Jacinto Company issued $ 1 2 , 9 0 0 , 0 0 0 of five -
On the first day of its fiscal year, Jacinto Company issued $ of fiveyear, bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market effective interest rate of resulting in Jacinto Company receiving cash of $ a Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. b Determine the amount of the bond interest expense for the first year. Round your answer to the nearest dollar. $ c Why was the company able to issue the bonds for only $ rather than for the face amount of $ The market rate of interest is the contract rate of interest. Retained Earnings Statement Pressure Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended January : Retained earnings, February Net income Cash dividends declared Stock dividends declared $ Prepare a retained earnings statement for the fiscal year ended January Pressure Pumps Corporation Retained Earnings Statement For the Year Ended January
On the first day of its fiscal year, Jacinto Company issued $ of fiveyear, bonds to finance its operations of producing and selling home improvement
products. Interest is payable semiannually. The bonds were issued at a market effective interest rate of resulting in Jacinto Company receiving cash of
$
a Journalize the entries to record the following:
Issuance of the bonds.
First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment.
Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment.
If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.
b Determine the amount of the bond interest expense for the first year. Round your answer to the nearest dollar.
$
c Why was the company able to issue the bonds for only $ rather than for the face amount of $
The market rate of interest is
the contract rate of interest. Retained Earnings Statement
Pressure Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended January :
Retained earnings, February
Net income
Cash dividends declared
Stock dividends declared
$
Prepare a retained earnings statement for the fiscal year ended January
Pressure Pumps Corporation
Retained Earnings Statement
For the Year Ended January
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