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Premium Amortization On the first day of the fiscal year, a company issues a $3,200,000, 7%, 4-year bond that pays semiannual interest of $112,000 ($3,200,000
Premium Amortization On the first day of the fiscal year, a company issues a $3,200,000, 7%, 4-year bond that pays semiannual interest of $112,000 ($3,200,000 x 7% x 2), receiving cash of $3,429,444. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. | Redemption of Bonds Payable A $940,000 bond issue on which there is an unamortized premium of $67,000 is redeemed for $772,000 Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. Journalizing Installment Notes On the first day of the fiscal year, a company issues $58,000, 10%, six-year installment notes that have annual payments of $13,317. The first note payment consists of $5,800 of interest and $7,517 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. b. Journalize the first annual note payment. For a compound transaction, if an amount box does not require an entry, leave it blank. Times interest earned Berry Company reported the following on the company's income statement in two recent years: Prior Year Current Year Interest expense $221,000 $243,100 Income before income tax expense 3,138,200 3,573,570 a. Determine the number of times interest charges were earned for current Year and prior Year. Round to one decimal place. Current Year Prior Year b. Is the number of times interest charges are earned improving or declining
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