this is principles of accounting
Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $6,300,000, 11%, 6-year bond that pays semiannual interest of $346,500 ($6,300,000 x 11% x 1/2), receiving cash of $5,786,001. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. :EE Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a $900,000, 7%, 10-year bond that pays semiannual interest of $31,500 ($900,000 x 7% x 1/2 year), receiving cash of $900,000. (a) Journalize the entry to record the issuance of the bonds. (b) Journalize the entry to record the first interest payment on June 30. (c) Journalize the entry to record the payment of the principal on the maturity date. O Discount Amortization On the first day of the fiscal year, a company issues a $6,500,000, 8%, 4-year bo of $260,000 ($6,500,000 x 8% x 1/2), receiving cash of $5,882,381. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. :EE Premium Amortization On the first day of the fiscal year, a company issues a $6,400,000, 9%, 6-year bond that pays semiannual interest of $288,000 ($6,400,000 x 9% x 1/2), receiving cash of $6,700,322. 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. :EE Journalizing Installment Notes On the first day of the fiscal year, a company issues $69,000, 9%, seven-year installment notes that have annual payments of $13,710. The first note payment consists of $6,210 of interest and $7,500 of principal repayment a. Journalize the entry to record the issuance of the installment notes. O b. Journalize the first annual note payment. For a compound transaction, if an amount box does not require an entry, leave it blank. Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $6,600,000, 12%, 9-year bond that pays semiannual interest of $396,000 ($6,600,000 x 12% x 1/2), receiving cash of $7,803,838. Journalize the bond issuance. 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: Current Prior Year Year Interest expense $362,000 $434,400 Income before income tax expense 4,307,800 5,560,320 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? Alternative Financing Plans Frey Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $960,000 $480,000 Issue preferred $1 stock, $10 par 800,000 Issue common stock, $5 par 960,000 640,000 Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $576,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 Earnings per share on common stock Plan 2 Earnings per share on common stock Redemption of Bonds Payable A $860,000 bond issue on which there is an unamortized premium of $76,000 is redeemed for $802,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank
