Question
PLZ ANSWER ASAP Sawada Insurance Ltd. issues bonds with a face value of $100 million that mature in 12 years. The bonds carry a 8.4%
PLZ ANSWER ASAP
Sawada Insurance Ltd. issues bonds with a face value of $100 million that mature in 12 years. The bonds carry a 8.4% interest rate and are sold at 125.23 to yield 5.5%. They pay interest semi-annually.
Calculate the proceeds on issuance of the bonds, and show the journal entry to record the issuance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Proceeds on Issuance of the Bonds | $Enter proceeds on issuance of the bonds in dollars. |
Account Titles and Explanation | Debit | Credit |
---|---|---|
Enter an account title. | Enter a debit amount. | Enter a credit amount. |
Enter an account title. | Enter a debit amount. | Enter a credit amount. |
eTextbook and Media
List of Accounts
Question Part Score
--/40
Will the carrying value of the liability for these bonds increase over time, or decrease?
The carrying value of the liability for these bonds will Select an option. decreaseincrease over time. |
eTextbook and Media
List of Accounts
Question Part Score
--/10
Show the journal entries to record the first two interest payments on these bonds. Ignore year-end accruals of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 125.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
Enter an account title to record first interest payment. | Enter a debit amount. | Enter a credit amount. |
Enter an account title to record first interest payment. | Enter a debit amount. | Enter a credit amount. |
Enter an account title to record first interest payment. | Enter a debit amount. | Enter a credit amount. |
(To record first interest payment) | ||
Enter an account title to record second interest payment. | Enter a debit amount. | Enter a credit amount. |
Enter an account title to record second interest payment. | Enter a debit amount. | Enter a credit amount. |
Enter an account title to record second interest payment. | Enter a debit amount. | Enter a credit amount. |
(To record second interest payment) |
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