Answered step by step
Verified Expert Solution
Question
1 Approved Answer
X .com/baeed/780236 43247167X Blackboard Expiration 1651212000000Ex-Blackboard Sig Student lockenana Un tod States Hist UTF-8Chapter%2010%20HW%20%28no%20answers%29%2C%201-6-2022.xlsx File Edit Insert Format Help 5 2 Q Q Calbri
X .com/baeed/780236 43247167X Blackboard Expiration 1651212000000Ex-Blackboard Sig Student lockenana Un tod States Hist UTF-8"Chapter%2010%20HW%20%28no%20answers%29%2C%201-6-2022.xlsx File Edit Insert Format Help 5 2 Q Q Calbri 11- BIUS B C D E F G H T K L M N o 4 51. On January 1, 2022, 1.000 8% 5-year $1000 bonds dated January 1, 2019 were issued at face value 6 7 Account Debit Credit 8 Cash 9 Notes Payable Amount will be equal to number of bonds issued times face value of the bond (ke. $1.000 times 1,000) 10 11 12 2. On July 1. $900,000 9% 5 year bonds dated July 1, 2022 were issued at 102 (i.e. you will receive more cash than the face value of the note). 13 14 15 Cash Account 16 Premium on notes payable 17 Notes Payable 18 19 Debit Credit This is the sum of the premium and the note amount (also equal to the face amount times 1.02) Multiply the face value of the note by 2/100 (or 0.02) to calculate the premium Amount will be equal to the face value of the bond 20 2. On September 1, $400,000 of 7%, 5-year bands dated September 1, 2022 were issued at 98 (you are receiving less than the face value of the note) 21 22 3 4 Account Debit Credit No clues here >> use the pattern above to calculate and note where the highlighting is in terms of debits and credits E10-4 BE10-5 to 7 BE10-12 BE10-13 E10-1 E103
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started