None RequiredFor each of the following situations, calculate the amount of bond discount or premium, if any: (Do not round your intermediatecalculations.)a. Gray Co. issued $65,000 of 6 percent bonds at 102 1/2b.Bush, Inc. issued $92,000 of 10-year, 6 percent bonds at 97 1/2.:12esc.Oak, Inc. issued $202,000 of 20-year, 6 percent bonds at 102.d. Willow Co. issued $106,000 of 15-year, 7 percent bonds at 95.

Step 1: ParticularsAmount($)Bond discount / PremiumExplanationa)$ 65000 @ 102.501625Bond…

Answered: Required For each of the following…

Principles of Accounting Volume 1

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Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
Required Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Round your answers to nearest dollar amount.) Cash Discount or Proceeds Premium а. Pear, Inc. issued $168,000 of 10-year, 8 percent bonds at 102. b. Apple, Inc. issued $139,000 of five-year, 12 percent bonds at 97. С. Cherry Co. issued $159,000 of five-year, 6 percent bonds at 102 1/4. d. Grape, Inc. issued $70,000 of four-year, 8 percent bonds at 98.00.
Required For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round intermediate calculations.) Premium a. Gray Co. issued $62,000 of 6 percent bonds at 102 1/2 Discount b. Bush, Inc. issued $87,000 of 10-year, 6 percent bonds at 96 1/2. Premium С. Oak, Inc. issued $217,000 of 20-year, 6 percent bonds at 102. Discount d. Willow Co. issued $117,000 of 15-year, 7 percent bonds at 97.
Present entries to record the selected transactions described below: a. Issued $2,750,000 of 10-year, 8% bonds at 97. If an amount box does not require an entry, leave it blank. b. Amortized bond discount for a full year, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of the redemption. If an amount box does not require an entry, leave it blank.
For each of the following situations, calculate the amount of bond discount or premium, if any. gray co. issues 61,000 of 6 percent bonds at 103 1/2 bush inc issued 91,000 of 10 year 6 percent bonds at 96 1/2 oak inc issued 240,000 of 20 year 6 percent bonds at 101 willow co issued of 15 year 7 percent bonds at 95
The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period: Bond carrying amount at beginning of period $2,125,000Interest paid during period 160,000 Interest expense allocable to the period 148,750 (a) Were the bonds issued at a discount or at a premium? (b) What is the unamortized amount of the discount or premium account at the beginningof the period? (c) What account was debited to amortize the discount or premium?
Blanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.) Issues $700,000 bonds at 102. c.) Issues $200,000 bonds at 100. Required: 1.) Prepare the journal entries to record the bond issuances under of the independent situations.
On January 1, Year 1, Denver Company issued bonds with a face value of $87,000, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were sold at 102.5. Denver uses the straight-line method to amortize bond discounts and premiums. What is the amount of interest expense during Year 1? Multiple Choice O O O O $7,134 $6,960 $7,395 $6,525
Cramer Corp. issued $20,000,000 of 5-year, 9% bonds at a market (effective) interest rate of 10%, receiving cash of $19,227.757. Interest on the bonds is payable semiannually. What is the entry to record the first semiannual interest payment, and the amortization of the bond discount, using the interest method?
On January 1, Year 1, Denver Company issued bonds with a face value of $89,000, a stated rate of interest of 9%, and a 5-year term to maturity. The bonds were sold at 103. Denver uses the straight-line method to amortize bond discounts and premiums. What is the amount of interest expense during Year 1? Multiple Choice O оо $8,544 $8,010 $8,250 $7,476
compute the cash proceeds from bond issues under the following terms. for each case, indicate whether the bonds sold at a premium or discount Cash Proceeds Discount or Premium a. Pear, Inc. issued $225,000 of 10-year, 8 percent bonds at 101. b. Apple, Inc. issued $133,000 of five-year, 12 percent bonds at 98. c. Cherry Co. issued $158,000 of five-year, 6 percent bonds at 102 1/4. d. Grape, Inc. issued $58,000 of four-year, 8 percent bonds at 97.
On January 1, 2018, Technicians Credit Union (TCU) issued 5%, 20-year bonds payable with face value of $100,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106. Journalize the following bond transactions: a (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) - X a. More Info a. Issuance of the bonds on January 1, 2018. b. Payment of interest and amortization on June 30, 2018. c. Payment of interest and amortization on December 31, 2018. d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded. Print Done

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