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please show full calculations and workings Sea-Link Distributors Inc. issues $2,000,000 of 6 percent, semi-annual, 20-year bonds dated April 30. Record (a) the issuance of
please show full calculations and workings
Sea-Link Distributors Inc. issues $2,000,000 of 6 percent, semi-annual, 20-year bonds dated April 30. Record (a) the issuance of bonds at par on April 30 and (b) the next semi-annual Exercise 15-3 Issuing bonds and paying interest interest payment on October 31. rest expense, 560,000 Exercise 15-4 ing bonds; paying and on February 1, Lasquiti Logistics Inc. issues 20-year, 3 percent bonds payable with a matu accruing interest est expense, $150,000 Record (a) the issuance of the bonds on February 1, (b) the semi-annual interest payment on July 31, and (c) the interest accrual on December 31. Exercise 15-5 Issuing bonds; paying Saturna Corp. issues 20-year, 6 percent bonds with a maturity value of $5,000,000 on and accruing interest April 30. The bonds sell at par and pay interest on March 31 and September 30. Record (a) the issuance of the bonds on April 30, (b) the payment of interest on September 30, and erest expense, 5125,000 (c) the accrual of interest on December 31. Exercise 15-6 Issuing bonds between Refer to the data for Saturna Corp. in Exercise 15-5. If Saturna Corp. issued the bonds on interest dates June 30, how much cash would Saturna Corp. receive upon issuance of the bonds? Exercise 15-7 Issuing bonds, paying and On April 1, Avalon Inc. issued 20-year, 3.5 percent bonds with a maturity value of $5,000,000. accruing interest, and The bonds sell at 98.00 and pay interest on September 30 and March 31. Avalon Inc. amor- mortizing a discount by the straight-line method tizes bond discounts by the straight-line method. Record (a) the issuance of the bonds on April 1, (b) the semi-annual interest payment on September 30, and (c) the interest accrual on December 31. Interest expense, 590,000 Exercise 15-8 Issuing bonds, paying and Lafayette Corp. issues $1,500,000 of 20-year, 8 percent bonds on February 1, 2017. The bonds ing interest, and amortizing sell at 102.00 and pay interest on January 31 and July 31. Assume Lafayette Corp. amor- remium by the straight-line tizes the premium by the straight-line method. Record (a) the issuance of the bonds on method February 1, (b) the payment of interest on July 31, (c) the accrual of interest on December 31, and (d) the payment of interest on January 31, 2018. . Interest expense, 559,250
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