Homework Answers
| Charger battery | ||||
| Table values are based on : | ||||
| n = 7 | ||||
| I = 9% | ||||
| Cash flow | Table value | Amount | Present Value | |
| Par value | 0.547 | 200000 | 109400 | |
| Interest | 5.033 | 22000 | 110726 | ( 200000 * 11% ) |
| Price | 220126 | |||
| Price of the bonds = $ 220132 ( given ) | ||||
| Bond Amortisation schedule | ||||
| Date | A.Cash paid | B.Intt. Exp.( carrying value * 9%) | C. Bond Premium (a - b) | D.Carrying value ( d-C) |
| Jan. 1, 2020 | 220132 | |||
| Dec.31, 2021 | 22000 | 19812 | 2188 | 217944 |
| Dec.31, 2022 | 22000 | 19615 | 2385 | 215559 |
| Date | Account Title | Debit ( $) | Credit ($) | |
| Dec.31, 2021 | Interest exp. | 19812 | ||
| Premium on bonds payable | 2188 | |||
| Cash | 22000 | |||
| Dec.31, 2022 | Interest exp. | 19615 | ||
| Premium on bonds payable | 2385 | |||
| Cash | 22000 | |||
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Cornerstone Exercise 9-38 Bonds issued at a Premium (Effective Interest) Charger Battery issued $200,000 of 115, 7-...
Cornerstone Exercise 9-38 Bonds Issued at a Premium (Effective Interest) Charger Battery issued $200,000 of 11%,...
Cornerstone Exercise 9-38 Bonds Issued at a Premium (Effective Interest) Charger Battery issued $200,000 of 11%, 7-year bonds on January 1, 2020, for $220,132. Interest is paid annually on December 31. The market rate of interest is 9%. Required: Prepare the journal entries for December 31, 2021 and 2022. If required, round your answers to the nearest whole dollar. 19,812 x Dec 31, 2021 2004 Interest Expense Premium on Bonds Payable Cash 22,000 Dec 31, 2022 Interest Expense 19,615 x...
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Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $750,000 in 6% bonds (payable on December 31, 2029) on January 1, 2020, for $675,000. Interest is paid on June 30 and December 31. The market rate of interest is 10%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec. 31, 2020 Interest Expense 26,250 X Discount on Bonds Payable 3,750 X Cash 22,500 Interest Expense...
Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $750,000 in 6% bonds (payable on December 31, 2029) on January 1, 2020, for $675,000. Interest is paid on June 30 and December 31. The market rate of interest is 10%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec. 31, 2020 Interest Expense 26,250 x Discount on Bonds Payable 3,750 x Cash 22,500 Dec. 31,...
please explain how to find cash,bond payable, and interst
expense
Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $650,000 in 8% bonds (payable on December 31, 2029) on January 1, 2020, for $617,500: Interest is paid on June 30 and December 31. The market rate of interest is 99% Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar Dec 31, 2020 Interest Expen Discount on...
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