Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE, DO NOT ANSWER IF YOU DON'T KNOW THE CORRECT ANSWER. THIS IS MY SECOND TIME POSTING THIS QUESTION ALREADY. AND PLEASE ANSWER ALL 5

PLEASE, DO NOT ANSWER IF YOU DON'T KNOW THE CORRECT ANSWER. THIS IS MY SECOND TIME POSTING THIS QUESTION ALREADY. AND PLEASE ANSWER ALL 5 PARTS OF THIS QUESTION (QUESTION 3,4,5 WILL BE PROVIDED IN TEXT BELOW), IF YOU CAN'T ANSWER ALL 5 QUESTIONS THEN DO NOT ANSWER AT ALL OR I WILL LEAVE A THUMB DOWN. I'M STRESSED. I WILL REPORT YOUR ANSWER TO CHEGG IF IT'S WRONG, IRRELEVANT, OR INCORRECT!
Hambelton Ltd. issued $3,300,000 of 5% bonds payable on 1 September 209 to yield 4%. Interest on the bonds is paid semi-annually
and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The
accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.)(Use
appropriate factor(s) from the tables provided.)
Required:
1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate
calculations. Round your final answer to the nearest whole dollar amount.)
Price of Bond:
2. Prepare a bond amortization table for the life of the bond.
(Please fill in all the columns in table provided in the photo)
3.Prepare journal entries to record the issuance of the bonds, payment of interest, and all necessary adjustments through to the end of 20X10.
3.1 Record the issuance of bonds at a premium (Sep 1,20X9)
3.2 Record the accrual of interest expense (Dec 31,20X9)
3.3 Record the payment of interest on bonds (Feb 28,20X10)
3.4 Record the payment of interest on bonds (Aug 31,20X10)
3.5 Record the accrual of interest expense (Dec 31,20X10)
4. Calculate the interest expense that would be recorded in each of 20X9 and 20X10.
Interest expense:
-20X9:
-20X10:
5. Show how the bond would be presented on the statement of financial position as of 31 December 20X9 and 20X10.
20X9/20X10
Bonds Payable:
Perimium on bonds payable:
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Finance A Contemporary Application Of Theory To Policy

Authors: David N. Hyman

5th Edition

0030113172, 978-0030113178

More Books

Students also viewed these Finance questions

Question

provide a thorough insight into what job crafting really is;

Answered: 1 week ago

Question

Explain all drawbacks of the application procedure.

Answered: 1 week ago

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago