HomeworkLib
Question

On June 30, 2017, Bramble Company issued $5,300,000 face value of 13%, 20-year bonds at $5,698,716, a yield of 12%. Bramble uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31 Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g 38,548. If no entry is required, select No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2017 (2) The payment of interest and the amortization of the premium on December 31, 2017. (3) The payment of interest and the amortization of the premium on June 30, 2018 (4) The payment of interest and the amortization of the premium on December 31, 2018 Credit Account Titles and Explanation Bonds Payable Premium on Bonds Payable No. Date Debit (1) June 30, 2017 (2) December 31, 2017
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1 The Issuance of Bond Cash A/c Dr Bonds Payable Premium on bonds Payable 5,698,716 5,300,000 398,716 2 The Payment of Interest and the ammortization of the premium on dec 31,2017 Interest at Face value Interest at current value Face Vale X Coupon interest rate X6/12 Current Value X Yield rate X 6/12 5,300,000* 13%*6/12 344,500 5598, 716* 12%*6/12 341,923 Interest at Face value Interest at current value Interest Expense Dr Premium on Bonds Payable 341,923 2,577 To Cash 344,500 3 The Payment of Interest and the ammortization of the premium on June 30,2018 Interest at Face value Interest at current value Face Vale X Coupon interest rate X 6/12 Current Value X Yield rate X 6/12 Interest at Face value 5,300,000* 13%*6/12 344,500 5,696,139 Current Value (5698716-2577) 5696139*12%*6/12 341,768 Interest at current value Interest Expense Dr Premium on Bonds Payable 341768 2,732 To Cash 344,500 4 The Payment of Interest and the ammortization of the premium on dec 31,2018 Interest at Face value Interest at current value Face Vale X Coupon interest rate X 6/12 Current Value X Yield rate X 6/12 Interest at Face value 5,300,000*13%*6/12 344,500 5,693,407 5693407*12%*6/12 Current Value (5696139-2732) Interest at current value 341,604 Interest Expense Dr Premium on Bonds Payable 341,604 2,896 To Cash 344,500

0 0
Add a comment
Know the answer?
Add Answer to:
On June 30, 2017, Bramble Company issued $5,300,000 face value of 13%, 20-year bonds at $5,698,716,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • On June 30, 2020, Sarasota Company issued $3,340,000 face value of 14%, 20-year bonds at $3,842,540,...

    On June 30, 2020, Sarasota Company issued $3,340,000 face value of 14%, 20-year bonds at $3,842,540, a yield of 12%. Sarasota uses the effective- interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. (a) Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit...

  • On June 30, 2020, Mischa Auer Company issued $4,000,000 facevalue of 13%, 20-year bonds at...

    On June 30, 2020, Mischa Auer Company issued $4,000,000 face value of 13%, 20-year bonds at $4,300,918, a yield of 12%. Auer uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are...

  • On June 30, 2017, Nash Company issued $3,300,000 face value of 13% 20 year bonds at...

    On June 30, 2017, Nash Company issued $3,300,000 face value of 13% 20 year bonds at $3,548,237. a yield of 12%. Nash uses the effective interest method to amortize bond premium or discount. The bonds por serial interest on ne 30 and December 31 select "No Entry for the accounts and enter for the amount Credit c a r indented Prepare the journal entries to record the following transactions. Round answer to decimal places a 3548. Innbys when amount is...

  • On June 30, 2017, Pina Company issued $3,700,000 face value of 13%, 20-year bonds at $3,978,349,...

    On June 30, 2017, Pina Company issued $3,700,000 face value of 13%, 20-year bonds at $3,978,349, a yield of 12% Pina uses the effective interest method to amortire bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to decimal places, e 38,548. If no entry is required, select "No Entry for the accoun tities and enter for the amounts. Credit account titles are...

  • Exercise 14-9 On June 30, 2017, Vaughn Company issued $4,500,000 face value of 13%, 20-year bonds...

    Exercise 14-9 On June 30, 2017, Vaughn Company issued $4,500,000 face value of 13%, 20-year bonds at $4,838,533, a yield of 12%. Vaughn uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit...

  • On June 30, 2020, Carla Company issued $5,640,000 face value of 14%, 20-year bonds at $6,488,600,...

    On June 30, 2020, Carla Company issued $5,640,000 face value of 14%, 20-year bonds at $6,488,600, a yield of 12%. Carla uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles...

  • Exercise 14-09 (Part Level Submission) On June 30, 2020, Mountain Company issued $4,180,000 face value of...

    Exercise 14-09 (Part Level Submission) On June 30, 2020, Mountain Company issued $4,180,000 face value of 13%, 20-year bonds at $4,494,460, a yield of 12%. Ayayai uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Collapse question part (a) Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles...

  • On June 30, 2020, Mischa Auer Company issued $4,000,000 face value of 13%, 20-year bonds at...

    On June 30, 2020, Mischa Auer Company issued $4,000,000 face value of 13%, 20-year bonds at $4,300,918, a yield of 12%. Auer uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. I just need help with #3 in the last part Prepare the journal entries to record the following transactions. (Round answer to o decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the...

  • On June 30, 2017, Bramble Company issued $3,300,000 face value of 13%, 20-year bonds at $3,548,257,...

    On June 30, 2017, Bramble Company issued $3,300,000 face value of 13%, 20-year bonds at $3,548,257, a yield of 12%. Bramble uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. 1.) Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2018, balance sheet long term liabilities Bonds payable - 3300000 Premium on Bonds Payable - ? 2.) Will the bond interest...

  • On June 30, 2020, Pronghorn Company issued $3,400,000 face value of 13%, 20-year bonds at $3,655,780,...

    On June 30, 2020, Pronghorn Company issued $3,400,000 face value of 13%, 20-year bonds at $3,655,780, a yield of 12%. Pronghorn uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT