Question
Please try to help me with all of them as soon as you can On December 31, 2016, Squidward Corporation issued $920,000, 8%, 15-year bonds
Please try to help me with all of them as soon as you can
On December 31, 2016, Squidward Corporation issued $920,000, 8%, 15-year bonds for $778,576 cash when the market rate of interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Squidward uses the effective interest method of amortization to amortize and premium or discount. A. Identify the following information:
Face Value____
Stated Rate of Interest ____
Annual Stated Interest ______
Semi-Annual Stated interest______
Price of the Bonds _____
Premium or Discount (circle one) _____
Give the journal entry to record the issue of the bonds on December 31, 2016.
Prepare an effective interest amortization table through December 31, 2018 (the first four interest payment dates)
.. Give the journal entry(s) required on the first interest payment date, June 30, 2017.
Compute the following amounts:
Interest expense to be reported on the 2017 income statement . Interest expense to be reported on the 2018 income statement
Total interest expense over the life of the bond
Total interest expense over the life of the bond if the straight-line method of amortization had been used.
. Indicate the presentation of the bond liability on the December 31, 2018 balance sheet:
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