Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 29 (20 points) a 5-year, $100,000 bond wi

Question 29 (20 points) A 5-year, $100,000 bond with a stated interest rate of 8.00%....

60.1K

Verified Solution

Question

Accounting

image
image
image
Question 29 (20 points) A 5-year, $100,000 bond with a stated interest rate of 8.00%. The market rate is 12.00%. Interest is to be paid semi-annually. What is the correct journal entry at the time the bond is issued? (Using the straight-line method of amortization) a) Debit Cash 85,300, Debit Discount Amortized 14,700 and Credit Bonds Payable 100,000 b) Debit Cash 85,279.36, Debit Discount Amortized 14,720.64 and Credit Bonds Payable 100,000 c) Debit Bonds Payable 100,000 and Credit Cash 85,300 and Credit Discount Amortized 14.700 d) Debit Cash 100,000 and Credit Bonds Payable 100,000 Question 25 (20 points) A 5-year, $100,000 bond with a stated interest rate of 8.00%. The market rate is 12.00%. Interest is to be paid semi-annually. What is the value of the bond at issuance? O a) $29,440.36 Ob) $85,279.36 Oc) $55,839.00 d) $85,250.36 Question 23 (20 points) Tu-Tu Corp issues a 6-year, $100,000 bond with a stated interest rate of 10.00% The market rate is 8.00%. Interest is paid semi-annually. What is the amount of Premium Amortized at the end of the third period? (The straight-line method of amortization is used.) a) $782.11 b) $785.66 Oc) $780.34 O d) $788.02

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The current stock price for a company is $33 per share, and there are 7 million...

Finance
Q

You just celebrated your 25th birthday today. You plan to invest $2000 annually, with the first...

Finance
Q

Which of the following is NOT an example of molecular homologies 1 The biochemical pathways...

Biology
Q

According to the Washington State Dept Health food codes 202 17 3 202 18 3...

Biology
Q

Find the measure of minor arc JN L 41 K 47 M N J Write...

Geometry
Q

4 Let K be a field and a K Prove that K x x a...

Basic Math
Q

The Happy Taco restaurant employs 12 people. If 3 people have an annual salary of...

Basic Math
Q

Exercise 9-6 Victor Mineli, the new controller of Crane Company, has reviewed the expected useful...

Accounting
Q

Selected data (in thousands) derived from the income statement and balance sheet of National Beverage...

Accounting
Q

On January 2, 20X8, Polaris Company acquired a 100% interest in the capital stock of...

Accounting
Q

3 Tu ghort-term decisions Slide 4 chapter 10 Relevant Costing for Managerial Decisions Describe...

Accounting
Q

Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock...

Accounting