Required Information Problem 9-5A (Algo) Record bond Issue and related Interest (LO9-5) [The following information applies to the questions displayed below] On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $590,000 of 8% bonds, due in 15 years, with Interest payable semiannually on June 30 and December 31 each year Problem 9-5A (Algo) Part 3 3. If the market interest rate is 7%, the bonds will issue at $644.257. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event. select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
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- Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortizationBrief ExerciseBonds Issued at a Premium (Effective Interest) Refer to the information above for Haley Industries. Required: Prepare the journal entry for December 31, 2022 and 2023. Use the following information for Brief Exercises 9-55 and 9-58: Haley Industries issued $120,000 of 11% , 7-year bonds on January 1, 2020, with $5,842 pre- mium. Interest is paid annually on December 31. The market rate of interest is 10%.Cornerstone Exercise Bonds Issued at a Discount (Effective Interest) Refer to the information for Sicily Corporation above. Required: Prepare the journal entries for December 31, 2020 and 2021. Use the following information for Cornerstone Exercises 9-33 and 9-34: Crafty Corporation issued 5475,000 of 5%, 7-year bonds on January 1, 2020, for $448,484. Interest is paid annually on December 31. The market rate of interest is 6%.
- Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premiumAggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premiumWilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.
- Required information Problem 9-5A (Algo) Record bond issue and related interest (LO9-5) [The following information applies to the questions displayed below.] On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $410,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Problem 9-5A (Algo) Part 2 2. If the market interest rate is 7%, the bonds will issue at $372,296. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.) Required information Problem 9-5A (Algo) Record bond issue and related interest (LO9-5) [The following information applies to the questions displayed below.] On January 1, 2024, Twister Enterprises, a manufacturer of a…Required information Problem 9-5A (Algo) Record bond issue and related interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $400,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Problem 9-5A (Algo) Part 1 Required:1. If the market interest rate is 6%, the bonds will issue at $400,000. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)Required information Problem 9-5A (Algo) Record bond issue and related interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $400,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Problem 9-5A (Algo) Part 2 2. If the market interest rate is 7%, the bonds will issue at $357,290. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
- Required information Exercise 9-18 (Algo) Record bonds issued at a premium and related annual interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $530,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year.Assuming the market interest rate on the issue date is 5%, the bonds will issue at $596,050. Exercise 9-18 (Algo) Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Hint: Use Illustration 9–7, except the dates for the first three rows will be 1/1/2024, 12/31/2024, and 12/31/2025 since interest is payable annually rather than semiannually. Interest expense for the period ended December 31, 2024, is calculated as the carrying value of $596,050 times the market rate of 5%.) (Round your final answers to the nearest whole dollar.)Required information [The following information applies to the questions displayed below) On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $560,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year 3. If the market interest rate is 6%, the bonds will issue at $614,881. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024 (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet < Record the bond issue. Show Transcribed Text Journal entry worksheet Record the bond issue. Note: Enter debits before credits. Date January 01, 2024 General Journal Cash Premium on Bonds Payable Bonds Payable Debit Credit Show Transcribed TextRequired information Exercise 9-17 (Algo) Record bonds issued at a discount and related annual interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $450,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year.Assuming the market interest rate on the issue date is 7%, the bonds will issue at $402,327. Exercise 9-17 (Algo) Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Hint: Use Illustration 9–6, except the dates for the first three rows will be 1/1/2024, 12/31/2024, and 12/31/2025 since interest is payable annually rather than semiannually. Interest expense for the period ended December 31, 2024, is calculated as the carrying value of $402,327 times the market rate of 7%.) (Round your final answers to the nearest whole dollar.)