SING YOUR KNOWLEDGE (B1 CHAPTER 14 Lone-Term Liabilitis a) Assume Uvingiton Company lssues 10-year bonds, as follows Bonds are dated to be issued on: Bonds are issued on Par value of bonds: Stated annual Interest rate Effective annual Interest rate Semiannual interest payments Amortization method used: May 1, 20x May 1, 20x 600,000 6% 5% May 1 and November i Effective Interest Method Prepare and attach an EXCEL schedule to support your answers REQUIRED a) What total amount will the Livingston Company receive on May 1, 20%6? b) What amount of interest expense will be reported on the income c) Wha d) Assume that the entire bond issue statement for the year ended December 31, 20x6 ended December 31, 20x8 on November 1, 20x10. t amount of Interest expense will be reported on the income statement for the year (600,000) is reacquired by Livingston Company 1.03 The reacqulsition price is: Prepare the appropriate journal entry to record the early retirement of the bonds. 4 Atlantic Company issues 10-year bonds, as follows: January 1, 20x1 June 1, 20x1 Bonds are dated to be issued on: Bonds are Issued on Par value of bonds: Stated annual interest rate: Price at date of issue: Semiannual interest payments: Bond issue costs incurred: $900,000 4% 101.15 January 1 and July 1 $ 16,100 Straight-line Amortization method used: Straight-ine amortization of bond issue costs and premium or discount amortization are recorded once ayear, at year-end. SING YOUR KNOWLEDGE (B1 CHAPTER 14 Lone-Term Liabilitis a) Assume Uvingiton Company lssues 10-year bonds, as follows Bonds are dated to be issued on: Bonds are issued on Par value of bonds: Stated annual Interest rate Effective annual Interest rate Semiannual interest payments Amortization method used: May 1, 20x May 1, 20x 600,000 6% 5% May 1 and November i Effective Interest Method Prepare and attach an EXCEL schedule to support your answers REQUIRED a) What total amount will the Livingston Company receive on May 1, 20%6? b) What amount of interest expense will be reported on the income c) Wha d) Assume that the entire bond issue statement for the year ended December 31, 20x6 ended December 31, 20x8 on November 1, 20x10. t amount of Interest expense will be reported on the income statement for the year (600,000) is reacquired by Livingston Company 1.03 The reacqulsition price is: Prepare the appropriate journal entry to record the early retirement of the bonds. 4 Atlantic Company issues 10-year bonds, as follows: January 1, 20x1 June 1, 20x1 Bonds are dated to be issued on: Bonds are Issued on Par value of bonds: Stated annual interest rate: Price at date of issue: Semiannual interest payments: Bond issue costs incurred: $900,000 4% 101.15 January 1 and July 1 $ 16,100 Straight-line Amortization method used: Straight-ine amortization of bond issue costs and premium or discount amortization are recorded once ayear, at year-end