Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me, this is due at midnight Surf's Up is a manufacturer of surfing supplies and training equipment. On January 1, 2021, Surf's Up
Please help me, this is due at midnight
Surf's Up is a manufacturer of surfing supplies and training equipment. On January 1, 2021, Surf's Up issues 6%, 10-year bonds with a face amount of $69,000 for $69,000 to finance its new warehouse. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid annually on December 31. Required: 1. & 2. Record the bond issue and first interest payment on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet 1 2 > Record the bond issue on January 1, 2021. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2021 Surf's Up is a manufacturer of surfing supplies and training equipment. On January 1, 2021, Surf's Up issues 6%, 10-year bonds with a face amount of $69,000 for $69,000 to finance its new warehouse. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid annually on December 31. Required: 1. & 2. Record the bond issue and first interest payment on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the first interest payment on December 31, 2021. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2021 A partial amortization schedule for Sugar Ray's BBQ follows. (1) (3) (4) (5) (2) Cash Paid for Interest Interest Expense Increase in Carrying Value Period Issue date 1 2 Carrying Value $60,141 60,245 60,352 $1,700 1,700 $1,804 1,807 $104 107 Required: 1. & 2. Record the bond issue and first interest payment assuming the face amount of bonds payable is $68,000. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the bond issue. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 A partial amortization schedule for Sugar Ray's BBQ follows. (1) (3) (5) (2) Cash Paid for Interest (4) Increase in Carrying Value Interest Expense Period Issue date 1 2 Carrying Value $60,141 60,245 60,352 $1,700 1,700 $1,804 1,807 $104 107 Required: 1. & 2. Record the bond issue and first interest payment assuming the face amount of bonds payable is $68,000. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 N > Record the first interest payment. Note: Enter debits before credits. General Journal Debit Credit Transaction 2 3. Interest expense increases each period because the carrying value of the debt issued at a discount increases over time. True False On January 1, 2021, Wild Rapids Water Park issues $40.6 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Required: 1-a. If the market rate is 7%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Amount 40,600,000 $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 1-b. The bonds will issue at O A Discount O A Premium O Face amount On January 1, 2021, Wild Rapids Water Park issues $40.6 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 2-a. If the market rate is 8%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Amount 40,600,000 $ Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at O A Discount O A Premium O Face amount On January 1, 2021, Wild Rapids Water Park issues $40.6 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 3-a. If the market rate is 9%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Amount $ 40,600,000 Bond Characteristics Face amount Interest payment Periods to maturity Market interest rate Issue price 3-b. The bonds will issue at O A Discount O A Premium Face amount Alaskan Frontier provides rail and bus tours of Alaska. Alaska Frontier issues $380,000 of 8% bonds on January 1, 2021 to finance operations. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $349,051. Required: 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 1/1/21 6/30/21 12/31/21 Alaskan Frontier provides rail and bus tours of Alaska. Alaska Frontier issues $380,000 of 8% bonds on January 1, 2021 to finance operations. The bonds are due in 15 years, with interest payable semiannually on June 30 and December each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $349,051. 2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 3 > Record the bond issue. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021 Alaskan Frontier provides rail and bus tours of Alaska. Alaska Frontier issues $380,000 of 8% bonds on January 1, 2021 to finance operations. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $349,051. 2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the first semiannual interest payment. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2021 Alaskan Frontier provides rail and bus tours of Alaska. Alaska Frontier issues $380,000 of 8% bonds on January 1, 2021 to finance operations. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $349,051. 2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the bond issue. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2021 Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T- M Corporation issues $500,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 20 years. Interest is paid semiannually on June 30 and December 31. Required: 1. If the market interest rate is 7%, the bonds will issue at $500,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 > Record the first semiannual interest payment. Note: Enter debits before credits. General Journal Debit Credit Date June 30, 2021 Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T- M Corporation issues $500,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 20 years. Interest is paid semiannually on June 30 and December 31. Required: 1. If the market interest rate is 7%, the bonds will issue at $500,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the bond issue. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021 Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T- M Corporation issues $500,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 20 years. Interest is paid semiannually on June 30 and December 31. 2. If the market interest rate is 8%, the bonds will issue at $450,518. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 1 2 3 > Record the first semiannual interest payment. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2021 Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T- M Corporation issues $500,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 20 years. Interest is paid semiannually on June 30 and December 31. 2. If the market interest rate is 8%, the bonds will issue at $450,518. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet Record the second semiannual interest payment. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T- M Corporation issues $500,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 20 years. Interest is paid semiannually on June 30 and December 31. 3. If the market interest rate is 6%, the bonds will issue at $557,787. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 1 2 3 > Record the bond issue. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2021 Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T- M Corporation issues $500,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 20 years. Interest is paid semiannually on June 30 and December 31. 3. If the market interest rate is 6%, the bonds will issue at $557,787. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 1 2 3 Record the first semiannual interest payment. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2021 Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T- M Corporation issues $500,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 20 years. Interest is paid semiannually on June 30 and December 31. 3. If the market interest rate is 6%, the bonds will issue at $557,787. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 2 3 > Record the second semiannual interest payment. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021
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