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please help CH10 Homework 1. On December 31, 2018, Eee Corp. issued 2,500,000, 9%, 4-year bonds. The bonds were sold to yield an effective-interest rate
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CH10 Homework 1. On December 31, 2018, Eee Corp. issued 2,500,000, 9%, 4-year bonds. The bonds were sold to yield an effective-interest rate of 7%. Interest is paid annually on January 1. The company uses the effective interest method of amortization Instructions (a) Calculate the issuance price of bonds. (BK) (b) Prepare a bond discount or premium amortization schedule which shows the amortization of discount or premium for the all interest payment dates. (Round to the nearest dollar) (c) Prepare all journal entries on each of the following dates: (1) (1) December 31, 2018 (2) December 31, 2019 (3) January 1, 2020 (4) December 31, 2020 (5) December 31, 2022 (6) January 1, 2023 2. On May 1, 2020, ABC corp. borrowed $800,000 on a 30-year mortgage to purchase land and a building. The land and building are pledged as collateral on the mortgage, which has an interest rate of 6 percent compounded monthly. The payments of $4,800 are made at the end of each month, beginning on May 31, 2020. (a) Prepare the journal entry for the purchase of the land and building, assuming that $300,000 is assignable to the land. (b) Prepare journal entries for the monthly payments on May 31, June 30 and July 31 for 2020. (Round the amounts to the nearest dollar) (c) Calculate the balance in the mortgage liability account after the July 31 payment. 3. Use the present value and the future value tables or a financial calculator to calculate answers to the following problems. (KAENDAHERLAND a. What is the present value of receiving $1.000 annually for 5 years at an interest rate of 6% compounded annually? b. If $6,000 is deposited in the bank today, what will be its future value in 4 years with an interest rate of 12%, compounded semi-annually? c. In order to accumulate $20,000 in 20 years, what annual payment must be made assuming an interest rate of 7% compounded annually? d. If $9,000 is desired in five years, what amount must be deposited today assuming an interest rate of 12% compounded quarterly Step by Step Solution
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