!Required informationP10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5[The following information applies to the questions displayed below.]On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bondsmature at the end of four years. Olive uses the effective-interest amortization method. The partially completedamortization schedule below pertains to the bonds:1/1/20x112/31/20x112/31/20x212/31/20x312/31/20x4DateP10-10 Part 1Date1/1/20x112/31/20x112/31/20x212/31/20x312/31/20x4$Cash$ 1,792???Required:1. Complete the amortization schedule.Note: Enter all your values in positive. Round your final answers to nearest whole dollar amount.Cash1,792 $$Interest$ 1,661??1,640Interest1,661 $1,640Amortization$ 131?145?Amortization$$131 $$145$Balance32,56632,43532,297Balance$ 32,56632,43532,297?32,00032,000

Lets understand the basics.Amortization of premium or amortization can be made using.(1) Straight…

P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date 1/1/20x1 12/31/20x1 12/31/20x2 12/31/20x3 12/31/20x4 Cash $ 1,792 ? ? ? Interest $ 1,661 ? ? 1,640 Amortization $ 131 ? 145 ? Balance $ 32,566 32,435 32,297 ? 32,000

P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date 1/1/20x1 12/31/20x1 12/31/20x2 12/31/20x3 12/31/20x4 Cash $ 1,792 ? ? ? Interest $ 1,661 ? ? 1,640 Amortization $ 131 ? 145 ? Balance $ 32,566 32,435 32,297 ? 32,000

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 96PSB

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Aggies 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 premium
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 premium
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Required Information P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Interest $ 1,661 ? ? 1,640 Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 -10-10 Part 3 Cash $ 1,792 ? ? Cash received ? Amortization $ 131 ? 145 ? Balance 32,566 32,435 32,297 ? 32,000 $ . How much cash was received on the day the bonds were issued (sold)?
Required Information P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Interest $ 1,661 ? ? 1,640 Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 P10-10 Part 8 Year 2 Year 3 Cash $ 1,792 ? ? ? Amortization $ 131 ? 145 ? 8. What amount of interest expense will be reported on the income statement for Year 2 and Year 3? (Round your final answers to nearest whole dollar amount.) Interest Expense Balance $ 32,566 32,435 32,297 ? 32,000
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January 1, 2024, Nurses Credit Union (NCU) issued 7%, 20-year bonds payable with face value of $1,100,000. These bonds pay interest on June 30 and December .The issue price of the bonds is 102. Journalize the following bond transactions: (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 ntry. Round your answers to the nearest whole dollar.) Paid semiannual interest and amortized premium. d. Journalize the retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Accounts and Explanation Credit Date 2043 Dec. 31 Debit |
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Based on Question No. 1, I want answer of Question No. 2 On September 1, Deutsch Limited issues 8%, 5-year bonds payable with a maturity value of OR 20,000. The bonds sell at 98 and pay interest on March 1 and September Deutsch amortize bond discount by the straight-line method. Required: Journalize the issuance of the bonds on September 1, and the semiannual interest payment on March 1 and September 1. Answer: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by companies, universities, and governmental organizations. It is a debt instrument used for the purpose of raising a fund of the corporations or governmental agencies. If selling price of the bond is equal to its face value, it is called as par on bond. If the selling price of the bond is lesser than the face value, it is known as a discount on bond. If the selling price of the bond is greater than the face value, it is known as premium on bond. 2. What are the two categories of liabilities…
1.) On January 1, 2024,Technicians Credit Union (TCU) issued 7%, 20-year bonds payable with face value of $1,100,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106. Journalize the following bond transactions: More info a. Issuance of the bonds on January 1, 2024. b. Payment of interest and amortization on June 30, 2024. c. Payment of interest and amortization on December 31, 2024. d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. (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.) Part 1 a. Journalize the issuance of the bonds on January 1, 2024. Date Accounts and Explanation Debit Credit 2024 Jan. 1 Cash Premium on…