Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer for a like thank you:)) TABLE 9C.1 TABLE 9C.2 Imai Company issued a $1.185 million bond that matures in five years. The bond
Please answer for a like thank you:))
TABLE 9C.1 TABLE 9C.2 Imai Company issued a $1.185 million bond that matures in five years. The bond has a 6 percent coupon rate. When the bond was issued, the market rate was 4 percent. The bond pays interest twice per year, on June 30 and December 31. Use Table 9 C.1, Table 9C.2. Required: 1. Record the issuance of the bond on June 30 . (Round time value factor to 4 decimal places. Enter your answers in dollars not in millions. Round intermediate and final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the issuance of bond on June 30th. Note: Enter debits before credits. E10-15 Preparing a Debt Payment Schedule with the Effective-Interest Method of Amortization, and Determining Reported Amounts LO10-3 Shuttle Company issued $2,750,000, three-year, 5 percent bonds on January 1 , year 1 . The bond interest is paid each December 31 , the end of the company's fiscal year. The bond was sold to yield 4 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to 4 decimal places.) Required: 1. Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortized discount/premium equals to ' 0 ' and the Net Liability equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+) discount / () premium amortized. Round intermediate and final answers to the nearest whole dollar.) 2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement of cash flows) for year 1 , year 2, and year 3 ? (Round intermediate and final answers to the nearest whole dollar.) On January 1 of this year, Bochini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1 , had a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Use Table 9C.1, Table 9C.2. Required: 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Journal entry worksheet Note: Enter debits before credits. 2. Prepare the journal entry to record the interest payment on December 31 of this year. Use effective-interest amortization and a premium account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Journal entry worksheet Record payment of annual interest and amortization of premium for 12 months Note: Enter debits before credits. 3. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for this year. (Enter your answers in dollars not in millions rounded to the nearest whole dollar.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started