On July 1, 2016, Garden Works, Inc. issued $301,400 of ten-year,7% bonds for $308,800. The bonds were dated July 1, 2016, andsemi-annual interest will be paid each December 31 and June 30.Garden Works Inc. uses the straight-line method of amortization.What is the net amount of the bond liability to be reported on theDecember 31, 2016 balance sheet?
$308,430.
$308,060.
$308,800.
$301,400.
On July 1, 2016, Garden Works, Inc. issued $301,400 of ten-year,7% bonds for $308,800. The bonds were dated July 1, 2016, andsemi-annual interest will be paid each December 31 and June 30.Garden Works Inc. uses the straight-line method of amortization.What is the net amount of the bond liability to be reported on theDecember 31, 2016 balance sheet?
$308,430.
$308,060.
$308,800.
$301,400.
Related questions
| On February 1, 2016, Sanford & Son issued 10% bonds dated February 1, 2016, with a face amount of $230,000. The bonds sold for $275,524 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year. A. Record the bond issuance on February 1, 2016. B. Record interest on July 31, 2016, using the straight-line method. C. Record the necessary entry on December 31, 2016. D. Prepare the necessary journal entry on January 31, 2017. |
Chowan Corporation issued $115,000 of 9% bonds dated January 1,2016, for $111,283.65 on January 1, 2016. The bonds are dueDecember 31, 2019, were issued to yield 10%, and pay interestsemiannually on June 30 and December 31. Chowan uses the effectiveinterest method of amortization.
Required:
| Prepare the journal entries torecord the issue of the bonds on January 1, 2016, and the interestpayments on June 30, 2016, December 31, 2016, and June 30, 2017. Inaddition, prepare a bond interest expense and discount amortizationschedule for the bonds through June 30, 2017. |
