The following is the partial bond discount amortization schedule for Monty Corp. Monty uses the effective-interest method ofamortization.InterestPeriodsIssue date(a)12Interest to BePaid$42,75042,750Interest Expense to BeRecordedAccount Titles and Explanation$45,66645,812DiscountAmortization$2,9163,062UnamortizedDiscountDebit$36,67833,76230,700Bond CarryingValue$913,322Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1. (Credit account titlesare automatically indented when amount is entered. Do not indent manually.)Credit916,238919,300

As per nominal account rule we should debit all expenses and losses and credit all incomes and…

The following is the partial bond discount amortization schedule for Monty Corp. Monty uses the effective-interest method of amortization. Interest Periods Issue date (a) 1 2 Interest to Be Paid $42,750 42,750 Interest Expense to Be Recorded Account Titles and Explanation $45,666 45,812 Discount Amortization $2,916 3,062 Debit Unamortized Discount $36,678 33,762 30,700 Bond Carrying Value Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit $913,322 916,238 919,300

The following is the partial bond discount amortization schedule for Monty Corp. Monty uses the effective-interest method of amortization. Interest Periods Issue date (a) 1 2 Interest to Be Paid $42,750 42,750 Interest Expense to Be Recorded Account Titles and Explanation $45,666 45,812 Discount Amortization $2,916 3,062 Debit Unamortized Discount $36,678 33,762 30,700 Bond Carrying Value Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit $913,322 916,238 919,300

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 55BE

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Presented below is the partial bond discount amortization schedule for Pharoah Corp. Pharoah uses the effective-interest method of amortization. Interest Periods Issue date 1 2 Interest to Be Paid $117,000 117,000 Interest Expense to Be Recorded $124,981 125,380 Discount Amortization $7,981 8,380 Unamortized Discount Debit $100,383 92,402 84,022 Bond Carrying Value Credit $2,499,617 2,507,598 (a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation 2,515,978
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Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500. If the issuing corporation redeems the bonds at 98 1/2, what is the amount of gain or loss on redemption? a. $500 loss Ob. $15,500 gain Oc. $500 gain Od. $15,500 loss 43 0 77777777777
Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. 12/31/20 12/31/21 12/31/22 Amortized cost $410,900 $445,100 $546,300 Fair value $416,800 $434,600 $546,300 (a) Indicate whether the bonds were purchased at a discount or at a premium. Prepare the adjusting entry to record the bonds at fair value at December 31, 2020. The Fair Value Adjustment account has a debit balance of $1,100 prior to adjustment. (c) Prepare the adjusting entry to record the bonds at fair value at December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Pricing bonds Bond prices depend on the market rate of interest, stated rate of interest and time. Requirements Compute the price of the following 8% bonds of Country Telecom. $100,000 issued at 75.25 $100,000 issued at 94.50 $100,000 issued at 103 50 $100,000 issued at 94.50 $100,000 issued at 103.25 2. Which bond will Country Telecom have to pay the most to retire at maturity? Explain your answer.