On December 31, 2011, Chocolate Hearts, Inc. issued $500,000, five-year bonds for $480,552. The stated rate of interest was 8% but the market rate is 9%. Interest is paid semi-annually on June 30 and December 31. Fill in the missing items on the amortization table. Round to the nearest dollar
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- Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments.Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
- The Smart Company sold $500,000 of 8 percent, 20-year bonds on April 1, 2011, at 105. The semiannual interest payment dates are March 31 and September 30. The market interest rate is 7.5 percent. The company's fiscal year ends September 30. Use the effective interest method to calculate the amortization. With regard to the bond interest payment on September 30, 2011: How much is interest expense?On January 1, 2018, Ling Services issued $168,000 of six-year, 12% bonds when the market interest rate was 11%. The issue price of the bonds was $177,110. Ling uses the effective-interest method to amortize the bond premium. Semiannual interest payments are made on June 30 and December 31 of each year. How much interest expense will be recorded when the first interest payment is made? (Round the final answer to the nearest dollar.) Can you help me solve this step by step?On January 1, 2016, a company issued $400,000 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $413,153 based on a 10% market interest rate. The effective-interest method of amortization is used. Rounding all calculations to the nearest whole dollar, what is the interest expense for the six-month period ending June 30, 2016? Select one: A. $20,658. B. $24,000. O C. $24,789. O D. $20,000.
- The Smart Company sold Rs. 500,000 of 8 percent, 20-year bonds on April 1, 2011, at 105. The semiannual interest payment dates are March 31 and September 30. The market interest rate is 7.5 percent. The company's fiscal year ends September 30. Use the effective interest method to calculate the amortization. With regard to the bond issue on April 1, 2011: How much cash is received? How much is Bonds Payable? What is the difference between a and b called and how much is it? With regard to the bond interest payment on September 30, 2011: How much cash is paid in interest? How much is the amortization? How much is interest expense? With regard to the bond interest payment on March 31, 2012: How much cash is paid in interest? How much is the amortization? How much is interest expense?On December 31, 2018, when the market interest rate is 10%, Willis Realty issues $1,000,000 of 11.25%, 10-year bonds payable. The bonds pay interest semiannually. Willis Realty received $1,077,988 in cash at issuance. Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) Interest Carrying Cash Paid Expense Amortized Amount 12/31/2018 06/30/2019 12/31/2019 Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. (Record debits first, then credits. Select explanations on the last line of the…Danner Company sold $500,000 of 8 percent, 20-year bonds on April 1, 2014, at 105. The semiannual interest payment dates are March 31 and September 30. The market interest rate is 7.5 percent. The company’s fiscal year ends September 30. Use the effective interest method to calculate the amortization. 1. With regard to the bond issue on April 1, 2014:a. How much cash is received?b. How much is Bonds Payable?c. What is the difference between a and b called and how much is it? 2. With regard to the bond interest payment on September 30, 2014:a. How much cash is paid in interest?b. How much is the amortization?c. How much is interest expense? 3. With regard to the bond interest payment on March 31, 2015:a. How much cash is paid in interest?b. How much is the amortization? (Round to the nearest cent.)c. How much is interest expense?
- On June 1, 2006, Janson Bottle Company sold $400,000 in long-term bonds for $351,040. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. (a.) Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Make sure all columns and rows are properly labeled. (Round to the nearest dollar.) (b) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2008. (Round to the nearest dollar.)Oak Branch Inc. issued $100,000 of 5%, 10-year bonds when the market rate was 4%. They received $106,983. Interest was paid semi-annually. Prepare an amortization table for the first three payments. PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Semiannual Interest Period Semiannual Interest Expense Semiannual Interest Payment Amortization of Discount Ending Carrying Value 1 2 3Starlight Drive-Ins Ltd. borrowed money by issuing$5,000,000 of 7% bonds payable at 95.5 on July 1, 2018. The bonds are 10-year bonds and payinterest each January 1 and July 1. How much interest expense will Starlight report each six months? Use the straight-lineamortization method. Journalize the entries for the accrual of interest and amortization ofdiscount on December 31, 2018, and the payment of interest on January 1, 2019.
