On January 1, 2018, White Water issues $560,000 of 6% bonds, duein 20 years, with interest payable annually on December 31 eachyear.
Assuming the market interest rate on the issue date is 5%, thebonds will issue at $629,789.
Required:
1. Complete the first three rows of an amortizationtable.
Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value 1/1/18 12/31/18 12/31/19
2. Record the journal entries for bond issue onJanuary 1, 2018, and the first two interest payments on December31, 2018, and December 31, 2019.
On January 1, 2018, White Water issues $560,000 of 6% bonds, duein 20 years, with interest payable annually on December 31 eachyear.
Assuming the market interest rate on the issue date is 5%, thebonds will issue at $629,789.
Required:
1. Complete the first three rows of an amortizationtable.
|
2. Record the journal entries for bond issue onJanuary 1, 2018, and the first two interest payments on December31, 2018, and December 31, 2019.
Related questions
| On January 1,2018, Swan Company issued bonds with the followingcharacteristics: | ||||||||||||||||||||||||||||||||||||
| Face Value (per bond) | $ 1,000 | |||||||||||||||||||||||||||||||||||
| Number of bonds issued | 2,000 | |||||||||||||||||||||||||||||||||||
| Coupon (stated) rate | 7% | |||||||||||||||||||||||||||||||||||
| Maturity date | 5 | |||||||||||||||||||||||||||||||||||
| Interest payments | Annually | |||||||||||||||||||||||||||||||||||
| Prevailing rate of interest in the market on January 1, 2018
| 8% | |||||||||||||||||||||||||||||||||||
Provide the December 31, 2021 journal entry |
Hello I want some help for this HW:
Kayak Club wants to issue 20, $1,000 bonds on January 1, 2003.The bonds mature in 5 years. The face interest rate is 10%; themarket interest rate is 12%. Interest will be paid semiannually onJune 30 and December 31.
How much money will Kayak Club receive when it issues thebonds?
Make the following journal entries:
At the issue date
At the first interest payment date
At the second interest payment date
GENERAL JOURNAL
Date | Description | Post reference | Debit | credit |
Date | Cash paid | Interest expense | Bond payable | Carrying value |
