Quatro Co. issues bonds dated January 1, 2o17, with a par value of $850,000. The bonds' annual contract rate is 12%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $893,131. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare an amortization table for these bonds; use the straight-line method to amortize the premium. Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 1 Prepare an amortization table for these bonds; use the straight-line method to amortize the premium. (Round your intermediate calculations to the nearest dollar amount.) Carrying Value Unamortized Premium Semiannual Interest Period-End 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 06/30/2019 12/31/2019 On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount. Exercise 10-9 Part 4 4. What is the carrying (book) value of the bonds and the carrying value of the 20% soon-to-be-retired bonds as of the close of business on December 31, 2022? Retired Entire 20% Group Par value 330,000 Remaining discount 330,000 S Carrying value On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount. Exercise 10-9 Part 5 5. How much did the company pay on January 1, 2023, to purchase the bonds that it retired? Purchase price On January 1, 2017, Shay issues $330,000 of 12%, 15-year bonds at a price of 97.00. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount. Exercise 10-9 Part 7 7. Prepare the journal entry to record the bond retirement at January 1, 2023. View transaction list Journal entry worksheet Record the retirement of 20% of the bonds before maturity on January 1, 2023. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2023 On January 1, 2017, Eagle borrows $18,000 cash by signing a four-year, 9% installment note. The note requires four equal payments of $5,556, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. Prepare an amortization table for this installment note. (Round all amounts to the nearest whole dollar.) Payments (A) (B) (C) (D) (E) Period Ending Beginning Debit Interest Debit Notes Credit Ending Date Balance Expense Payable Cash Balance 2017 2018 2019 2020 Total Quatro Co. isues bonds dated January 1, 2017, with a par value of $850,000. The bonds' annual contract rate is 12%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $893,131. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare an amortization table for these bonds; use the straight-line method to amortize the premium. Complete this question by entering your answers in the tabs below. Required 3 Required 2 Required 1 Prepare an amortization table for these bonds; use the straight-line method to amortize the premium. (Round your intermediate calculations to the nearest dollar amount.) Carrying Value Unamortized Semiannual Interest Period-End Premium 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 06/30/2019 12/31/2019 On January 1, 2o17, MM Co. borrows $310,000 cash from a bank and in return signs an 4% installment note for five annual payments of $69,634 each, with the first payment due one year after the note is signed. (Table B.3) (Use PV factors from table provided.) 1. Prepare the journal entry to record issuance of the note. View transaction list Journal entry worksheet Record the issuance of the note. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal 5 of 7 Prev Next > On January 1, 2017, MM Co. borrows $310,000 cash from a bank and in return signs an 4% installment note for five annual payments of $69,634 each, with the first payment due one year after the note is signed. (Table B.3) (Use PV factors from table provided.) 1. Prepare the journal entry to record issuance of the
