All Related Questions of Amortization Table

Q: On July 1, 2014, Agincourt Inc. made two sales

On July 1, 2014, Agincourt Inc. made two sales: 1. It sold excess land in exchange for a four-year, non-interest-bearing promissory note in the face amount of $1,101,460. The land's carrying value is...

Q: Gamma Corp. invested in a three-year, $ 100

Gamma Corp. invested in a three-year, $ 100 face value 6% bond, paying $ 105.55. At this price, the bond will yield a 4% return. Interest is payable annually. (a) Prepare a bond premiun1 amortization...

Q: Minute Corp., a Canadian public corporation, reported the following on

Minute Corp., a Canadian public corporation, reported the following on its December 31, 2013 statement of financial position: $ Investment in Hysenaj Ltd. shares, at fai...

Q: Beta Corp. invested in a three-year, $ 100

Beta Corp. invested in a three-year, $ 100 face value 8% bond, paying $95.03. At this price, the bond will yield a 10% return. Interest is payable annually. (a) Prepare a bond discount amortization ta...

Q: On January 1, Year 1, Bryson Company obtained a $

On January 1, Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31, Year 1. a. Prepare...

Q: EKU, Inc., issued $560,000 of 6%,

EKU, Inc., issued $560,000 of 6%, 10-year bonds payable at a price of 80.5 on March 31, 2012. The market interest rate at the date of issuance was 9%, and the EKU bonds pay interest semiannually. 1. P...

Q: Use the amortization table that you prepared for EKU’s bonds in Short

Use the amortization table that you prepared for EKU’s bonds in Short Exercise 9-9 to answer the following questions: 1. How much cash did EKU borrow on March 31, 2012? How much cash will EKU pay bac...

Q: Team Sports Ltd. is authorized to issue $5,000

Team Sports Ltd. is authorized to issue $5,000,000 of 5%, 10-year bonds payable. On December 31, 2012, when the market interest rate is 6%, the company issues $4,000,000 of the bonds and receives cash...

Q: On June 30, 2012, the market interest rate is 8

On June 30, 2012, the market interest rate is 8%. First Place Sports Ltd. issues $4,000,000 of 9%, 20-year bonds payable at a price of 109.895. The bonds pay interest on June 30 and December 31. First...

Q: Winner Sports Ltd. is authorized to issue $4,000

Winner Sports Ltd. is authorized to issue $4,000,000 of 12%, 10-year bonds payable. On December 31, 2012, when the market interest rate is 14%, the company issues $3,200,000 of the bonds and receives...

Q: On June 30, 2012, the market interest rate is 7

On June 30, 2012, the market interest rate is 7%. Victory Sports Ltd. issues $1,600,000 of 8%, 25-year bonds payable at a price of 111.75. The bonds pay interest on June 30 and December 31. Victory Sp...

Q: The notes to the Giving Charities’ financial statements reported the following data

The notes to the Giving Charities’ financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Giving Charities’ amortizes b...

Q: On December 31, 2012, Laraboo Corp. issues 11%,

On December 31, 2012, Laraboo Corp. issues 11%, 10-year convertible bonds payable with a maturity value of $4,000,000. The semiannual interest dates are June 30 and December 31. The market interest ra...

Q: The notes to the Thankful Charities financial statements reported the following data

The notes to the Thankful Charities financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Thankful Charities amortizes bonds by the effective-interest met...

Q: On December 31, 2012, Zugaboo Corp. issues 5%,

On December 31, 2012, Zugaboo Corp. issues 5%, 10-year convertible bonds payable with a maturity value of $5,000,000. The semiannual interest dates are June 30 and December 31. The market interest rat...

Q: Brad Nelson, Inc. issued $600,000 of 7

Brad Nelson, Inc. issued $600,000 of 7%, six-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 6%, and the bonds pay interest semiannually. Requirements: 1....

Q: Relaxation, Inc. is authorized to issue 7%, 10-

Relaxation, Inc. is authorized to issue 7%, 10-year bonds payable. On January 1, 2018, when the market interest rate is 12%, the company issues $300,000 of the bonds. The bonds pay interest semiannual...

Q: Ari Goldstein issued $300,000 of 11%, five-

Ari Goldstein issued $300,000 of 11%, five-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually. Requirements: 1. H...

Q: Sleep Well, Inc. is authorized to issue 9%, 10

Sleep Well, Inc. is authorized to issue 9%, 10-year bonds payable. On January 1, 2018, when the market interest rate is 10%, the company issues $500,000 of the bonds. The bonds pay interest semiannual...

Q: On December 31, 2018, when the market interest rate is

On December 31, 2018, when the market interest rate is 6%, Benson Realty issues $700,000 of 6.25%, 10-year bonds payable. The bonds pay interest semiannually. Benson Realty received $713,234 in cash a...

Q: On December 31, 2018, when the market interest rate is

On December 31, 2018, when the market interest rate is 8%, Biggs Realty issues $450,000 of 5.25%, 10-year bonds payable. The bonds pay interest semiannually. The present value of the bonds at issuance...

Q: Suppose that you take out a $200,000, 20

Suppose that you take out a $200,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 6%, and payments on the loan are made annually at the end of each year. a. What is your an...

Q: Beth has just borrowed $5,000 on a four-

Beth has just borrowed $5,000 on a four-year loan at 8% simple interest. Complete the amortization table at the bottom of the page for the first five months of the loan.

Q: Consider a 30-year graduated-payment mortgage on a $

Consider a 30-year graduated-payment mortgage on a $250,000 mortgage with yearly payments. The stated interest rate on the mortgage is 6%, but the first annual payment is calculated assuming a 3% rate...

Q: Consider a growing equity mortgage on a $250,000 mortgage

Consider a growing equity mortgage on a $250,000 mortgage with yearly payments. The stated interest rate on the mortgage is 6%, but this only applies to the first annual payment. Thereafter, the annua...

Q: On January 1, 2017, Lachte Corporation issued $1,

On January 1, 2017, Lachte Corporation issued $1,800,000 face value, 5%, 10-year bonds at $1,667,518. This price resulted in an effective-interest rate of 6% on the bonds. Lachte uses the effective-in...

Q: On January 1, 2018, Parker Company issued bonds with a

On January 1, 2018, Parker Company issued bonds with a face value of $80,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of ea...

Q: Sylvestor Company issues 10%, five-year bonds, on December

Sylvestor Company issues 10%, five-year bonds, on December 31, 2014, with a par value of $100,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entrie...

Q: Break into teams and complete the following requirements related to effective interest

Break into teams and complete the following requirements related to effective interest amortization for a premium bond. 1. Each team member is to independently prepare a blank table with proper headin...

Q: On January 1, 2014, Lock Corporation issued $1,

On January 1, 2014, Lock Corporation issued $1,800,000 face value, 5%, 10-year bonds at $1,667,518. This price resulted in an effective-interest rate of 6% on the bonds. Lock uses the effective-intere...

Q: On January 1, 2014, Lock Corporation issued $1,

On January 1, 2014, Lock Corporation issued $1,800,000 face value, 5%, 10-year bonds at $1,667,518. This price resulted in an effective-interest rate of 6% on the bonds. Lock uses the effective-intere...

Q: On January 1, 2014, Imelda Corporation issued $2,

On January 1, 2014, Imelda Corporation issued $2,000,000 face value, 6%, 10-year bonds at $2,154,434. This price resulted in an effective-interest rate of 5% on the bonds. Imelda uses the effective-in...

Q: On January 1, 2014, Imelda Corporation issued $2,

On January 1, 2014, Imelda Corporation issued $2,000,000 face value, 6%, 10-year bonds at $2,154,434. This price resulted in an effective-interest rate of 5% on the bonds. Imelda uses the effective-in...

Q: Romero issues $3,400,000 of 10%, 10

Romero issues $3,400,000 of 10%, 10-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,010,000. Required 1. Prepare the...

Q: Ripkin Company issues 9%, five-year bonds dated January 1

Ripkin Company issues 9%, five-year bonds dated January 1, 2015, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market...

Q: On October 1, 2015, Gordon Enterprises borrows $150,

On October 1, 2015, Gordon Enterprises borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal total payments each year on September 30...

Q: Refer to the bond details in Problem 14-5B.

Refer to the bond details in Problem 14-5B. Required 1. Prepare the January 1, 2015, journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be...

Q: Refer to the bond details in Problem 14-4B.

Refer to the bond details in Problem 14-4B. Required 1. Compute the total bond interest expense over the bonds’ life. 2. Prepare an effective interest amortization table like the on...

Q: On January 1, 2015, Eagle borrows $100,000

On January 1, 2015, Eagle borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year f...

Q: Stanford issues bonds dated January 1, 2015, with a par

Stanford issues bonds dated January 1, 2015, with a par value of $500,000. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bo...

Q: Quatro Co. issues bonds dated January 1, 2015, with

Quatro Co. issues bonds dated January 1, 2015, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The...

Q: Duval Co. issues four-year bonds with a $100

Duval Co. issues four-year bonds with a $100,000 par value on June 1, 2015, at a price of $95,948. The annual contract rate is 7%, and interest is paid semiannually on November 30 and May 31. 1. Prepa...

Q: Tano issues bonds with a par value of $180,000

Tano issues bonds with a par value of $180,000 on January 1, 2015. The bonds’ annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds matu...

Q: Paulson Company issues 6%, four-year bonds, on December

Paulson Company issues 6%, four-year bonds, on December 31, 2015, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries t...

Q: Dobbs Company issues 5%, two-year bonds, on December

Dobbs Company issues 5%, two-year bonds, on December 31, 2015, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to r...

Q: Woodwick Company issues 10%, five-year bonds, on December

Woodwick Company issues 10%, five-year bonds, on December 31, 2014, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries...

Q: Quatro Co. issues bonds dated January 1, 2015, with

Quatro Co. issues bonds dated January 1, 2015, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The...

Q: Ike issues $180,000 of 11%, three-year

Ike issues $180,000 of 11%, three-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. They are issued at $184,566. Their market rate is 10% at the issue date....

Q: Hillside issues $4,000,000 of 6%, 15

Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required 1. Prepare th...

Q: Refer to the bond details in Problem 14-2A, except

Refer to the bond details in Problem 14-2A, except assume that the bonds are issued at a price of $4,895,980. Required 1. Prepare the January 1, 2015, journal entry to record the bondsâ€&#...

Q: Ellis issues 6.5%, five-year bonds dated January

Ellis issues 6.5%, five-year bonds dated January 1, 2015, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is...

Q: Legacy issues $325,000 of 5%, four-year

Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 and their market rate is 8% at the issue dat...

Q: On November 1, 2015, Norwood borrows $200,000

On November 1, 2015, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal total payments each year on October 31. Required 1....

Q: Refer to the bond details in Problem 14-5A.

Refer to the bond details in Problem 14-5A. Required 1. Prepare the January 1, 2015, journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be...

Q: Refer to the bond details in Problem 14-4A.

Refer to the bond details in Problem 14-4A. Required 1. Compute the total bond interest expense over the bonds’ life. 2. Prepare an effective interest amortization table like the on...

Q: Valdez issues $450,000 of 13%, four-year

Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. They are issued at $493,608, and their market rate is 10% at the issue...

Q: Use the amortization table that you prepared for GITs bonds in Short

Use the amortization table that you prepared for GITs bonds in Short Exercise 8-9 to answer the following questions: 1. How much cash did GIT borrow on March 31, 2010? How much cash will GIT pay back...

Q: GIT, Inc., issued $600,000 of 5%,

GIT, Inc., issued $600,000 of 5%, 12-year bonds payable at a price of 77 on March 31, 2010. The market interest rate at the date of issuance was 8%, and the GIT bonds pay interest semiannually. 1. Pr...

Q: New lease standards become effective January 1, 2019. These standards

New lease standards become effective January 1, 2019. These standards affect the accounting for operating leases. Assume Swift Company acquires a machine with a fair value of $100,000 on January 1 of...

Q: Refer to the preceding facts for Press’s acquisition of Simon common stock

Refer to the preceding facts for Press’s acquisition of Simon common stock. Press uses the simple equity method to account for its investment in Simon. On January 1, 2016, Press held...

Q: Refer to the preceding facts for Press’s acquisition of Simon common stock

Refer to the preceding facts for Press’s acquisition of Simon common stock. Press uses the simple equity method to account for its investment in Simon. On January 1, 2017, Press held...

Q: Refer to the preceding facts for Press’s acquisition of Simon common stock

Refer to the preceding facts for Press’s acquisition of Simon common stock. Press uses the simple equity method to account for its investment in Simon. On January 1, 2016, Press held...

Q: Refer to the preceding facts for Press’s acquisition of Simon common stock

Refer to the preceding facts for Press’s acquisition of Simon common stock. Press uses the simple equity method to account for its investment in Simon. On January 1, 2017, Press held...

Q: Fish Spotters, Inc., purchased a single-engine aircraft from

Fish Spotters, Inc., purchased a single-engine aircraft from National Aviation on January 1, 2014. Fish Spotters paid $55,000 cash and signed a three-year, 8% note for the remaining $45,000. Terms of...

Q: Bunker Company negotiated a lease with Gilbreth Company that begins on January

Bunker Company negotiated a lease with Gilbreth Company that begins on January 1, 2017. The lease term is three years, and the asset’s economic life is four years. The annual lease payments are $7,500...

Q: Moore Company sells and leases its computers. Moore’s cost and sales

Moore Company sells and leases its computers. Moore’s cost and sales price per machine are $1,200 and $3,000, respectively. At the end of three years, the expected residual value is $400, which is gua...

Q: On January 1, 2017, Dwyer Company leases space for a

On January 1, 2017, Dwyer Company leases space for a donut shop. The lease is for five years with payments to be made at the beginning of each year. The lease calls for Dwyer to pay $10,000 on January...

Q: On January 1, 2017, Seven Wonders Inc. signed a

On January 1, 2017, Seven Wonders Inc. signed a five-year noncancelable lease with Moss Company. The lease calls for five payments of $277,409.44 to be made at the end of each year. The leased asset h...

Q: On January 1, 2017, Bill Inc. leases manufacturing equipment

On January 1, 2017, Bill Inc. leases manufacturing equipment from Beatrix Corporation. The lease covers seven years and requires annual lease payments of $51,000, beginning on January 1, 2017. The ung...

Q: On January 1, 2017, Bare Trees Company signed a three

On January 1, 2017, Bare Trees Company signed a three-year noncancelable lease with Dreams Inc. The lease calls for three payments of $62,258.09 to be made at each year-end. The lease payments include...

Q: On January 1, 2017, Task Co. signs an agreement

On January 1, 2017, Task Co. signs an agreement to lease office equipment from Coleman Inc. for three years with payments of $193,357 beginning December 31, 2017. The equipment’s fair value is $500,00...

Q: On July 1, 2017, Burgundy Studios leases camera equipment from

On July 1, 2017, Burgundy Studios leases camera equipment from Corningstone Corporation. The lease covers eight years and requires lease payments of $42,000, beginning on July 1, 2017. The unguarantee...

Q: Monk Company, a dealer in machinery and equipment, leased equipment

Monk Company, a dealer in machinery and equipment, leased equipment with a 10-year life to Leland Inc. on July 1, 2017. The lease is appropriately accounted for as a sale by Monk and as a purchase by...

Q: Mickelson reports on a calendar year basis. On January 1,

Mickelson reports on a calendar year basis. On January 1, 2017, Mickelson Corporation enters into a three-year lease with annual payments of $30,000. The first payment will be due on December 31, 2017...

Q: On January 1, 2017, Bonduris Company leases warehouse space in

On January 1, 2017, Bonduris Company leases warehouse space in Oakland, CA. The lease is for six years with payments to be made at the beginning of each year. The lease calls for Bonduris to pay $15,0...

Q: Kelly Company acquired $500,000 face value of the outstanding

Kelly Company acquired $500,000 face value of the outstanding bonds of Steedly Company on January 1, 2013. The bonds pay interest semiannually on June 30 and December 31 at an annual rate of 7% and ma...

Q: Kelly Company acquired $500,000 face value of the outstanding

Kelly Company acquired $500,000 face value of the outstanding bonds of Steedly Company on January 1, 2013. The bonds pay interest semiannually on June 30 and December 31 at an annual rate of 7% and ma...

Q: On January 1, Year 1, Parker Company issued bonds with

On January 1, Year 1, Parker Company issued bonds with a face value of $80,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of...

Q: On January 1, Year 1, Hart Company issued bonds with

On January 1, Year 1, Hart Company issued bonds with a face value of $150,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of e...

Q: On January 1, Year 1, Valley Enterprises issued bonds with

On January 1, Year 1, Valley Enterprises issued bonds with a face value of $60,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31...

Q: On January 1, Year 1, Reese Incorporated issued bonds with

On January 1, Year 1, Reese Incorporated issued bonds with a face value of $120,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 3...

Q: Trevor Diaz wants to purchase a Maserati Qattroporte sedan, which has

Trevor Diaz wants to purchase a Maserati Qattroporte sedan, which has an invoice price of $121,737 and a total cost of $129,482. Trevor plans to put down $20,000 and will pay the rest by taking on a 5...

Q: Score Ltd. is authorized to issue $2,000,

Score Ltd. is authorized to issue $2,000,000 of 3%, 10-year bonds payable. On December 31, 2016, when the market interest rate is 7%, the company issues $1,600,000 of the bonds. Score Ltd. amortizes b...

Q: On June 30, 2016, the market interest rate is 8

On June 30, 2016, the market interest rate is 8%. Team Sports Ltd. issues $800,000 of 10%, 10-year bonds payable. The bonds pay interest on June 30 and December 31. Team Sports Ltd. amortizes bond pre...

Q: ActiveGo Sports Ltd. is authorized to issue $5,000

ActiveGo Sports Ltd. is authorized to issue $5,000,000 of 4%, 10-year bonds payable. On December 31, 2016, when the market interest rate is 4.5%, the company issues $4,000,000 of the bonds. ActiveGo S...

Q: On June 30, 2016, the market interest rate is 6

On June 30, 2016, the market interest rate is 6%. Grommet Candies Ltd. issues $2,000,000 of 8%, 10-year bonds payable. The bonds pay interest on June 30 and December 31. Grommet Candies Ltd. amortizes...

Q: The notes to the Mann Ltd. financial statements reported the following

The notes to the Mann Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Mann Ltd. amortizes bond discount by the ef...

Q: On December 31, 2016, Rugaboo Corp. issues 6%,

On December 31, 2016, Rugaboo Corp. issues 6%, 10-year convertible bonds payable with a maturity value of $4,000,000. The semiannual interest dates are June 30 and December 31. The market interest rat...

Q: The notes to the Friendship Ltd. financial statements reported the following

The notes to the Friendship Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Friendship Ltd. amortizes bond discou...

Q: On December 31, 2016, Zenith Corp. issues 7%,

On December 31, 2016, Zenith Corp. issues 7%, 10-year convertible bonds payable with a maturity value of $2,000,000. The semiannual interest dates are June 30 and December 31. The market interest rate...

Q: Hartley Corporation issued $520,000 of 5%, 12-

Hartley Corporation issued $520,000 of 5%, 12-year bonds payable on March 31, 2016. The market interest rate at the date of issuance was 8%, and the Hartley Corporation bonds pay interest semiannually...

Q: Use the amortization table that you prepared for Hartley Corporation’s bonds in

Use the amortization table that you prepared for Hartley Corporation’s bonds in S9-11 to answer the following questions: 1. How much cash did Hartley Corporation borrow on March 31, 2016? How much ca...

Q: Jackson Corporation issued $600,000 of 6%, 10-

Jackson Corporation issued $600,000 of 6%, 10-year bonds payable on January 1, 2016. The market interest rate at the date of issuance was 4%, and the Jackson Corporation bonds pay interest semiannuall...

Q: Use the amortization table that you prepared for Jackson Corporation’s bonds in

Use the amortization table that you prepared for Jackson Corporation’s bonds in S9-13 to answer the following questions: 1. How much cash did Jackson Corporation borrow on January 1, 2016? How much c...

Q: On January 1, 2020, Lock Corporation issued $1,

On January 1, 2020, Lock Corporation issued $1,800,000 face value, 5%, 10-year bonds at $1,667,518. This price resulted in an effective-interest rate of 6% on the bonds. Lock uses the effective intere...

Q: Fill in the missing entries in this loan amortization table for a

Fill in the missing entries in this loan amortization table for a $220,000 20-year mortgage with an APR of 2.95%.

Q: Joanne and Matt have been approved for a $350,000

Joanne and Matt have been approved for a $350,000, 15-year mortgage with an APR of 4.25%. Using the mortgage and interest formulas, set up a 2-month amortization table with the following headings and...

Q: Michelle took out a $370,000, 30-year

Michelle took out a $370,000, 30-year, adjustable-rate mortgage with a 2.8% initial 6-month rate. The amortization table for the initial rate period is shown. After the first 6 months, the rate went u...

Q: Use a spreadsheet to generate the last year of payments in a

Use a spreadsheet to generate the last year of payments in a loan amortization table for a $600,000, 15-year mortgage with an APR of 3.5%.

Q: Examine the loan amortization table for the last 5 months of a

Examine the loan amortization table for the last 5 months of a $500,000, 15-year mortgage with an APR of 4.05%. Determine the missing table amounts.

Q: Examine the loan amortization table for a $210,000,

Examine the loan amortization table for a $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra $100 each month toward the principal. Determine the missing amounts.

Q: Examine this portion of an amortization table for an adjustable rate mortgage

Examine this portion of an amortization table for an adjustable rate mortgage that had a 1-year initial rate period of 2.87% and increased to 3.37% after that period ended. Determine the missing amoun...

Q: Tom took out a $440,000, 15-year

Tom took out a $440,000, 15-year adjustable rate mortgage with a 2.85% initial 6-month rate. The amortization table for the initial rate period is shown. After the first 6 months, the rate went up to...

Q: Don and Celine have been approved for a $400,000

Don and Celine have been approved for a $400,000, 20-year mortgage with an APR of 3.35%. Using the mortgage and interest formulas, set up a 2-month amortization table with the headings shown and compl...

Q: Use a spreadsheet to generate the first year of payments in a

Use a spreadsheet to generate the first year of payments in a loan amortization table for a $200,000, 10-year mortgage with an APR of 3.4%.

Q: Beta Corp. invested in a three-year, $100

Beta Corp. invested in a three-year, $100 face value 8% bond, paying $95.03. At this price, the bond will yield a 10% return. Interest is payable annually. (a) Prepare a bond discount amortization tab...

Q: Gamma Corp. invested in a three-year, $100

Gamma Corp. invested in a three-year, $100 face value 6% bond, paying $105.55. At this price, the bond will yield a 4% return. Interest is payable annually. (a) Prepare a bond premium amortization tab...

Q: On July 1, 2017, Agincourt Inc. made two sales

On July 1, 2017, Agincourt Inc. made two sales: 1. It sold excess land in exchange for a four-year, non–interest-bearing promissory note in the face amount of $1,101,460. The land’s carrying value is...

Q: On December 31, 2017, Zhang Ltd. rendered services to

On December 31, 2017, Zhang Ltd. rendered services to Beggy Corp. at an agreed price of $91,844.10. In payment, Zhang accepted $36,000 cash and agreed to receive the balance in four equal installments...

Q: Ramey Corporation is a diversified public company with nationwide interests in commercial

Ramey Corporation is a diversified public company with nationwide interests in commercial real estate development, banking, copper mining, and metal fabrication. The company has offices and operating...

Q: On January 1, 2017, Quinton Corporation issued $600,

On January 1, 2017, Quinton Corporation issued $600,000 of 7% bonds that are due in 10 years. The bonds were issued for $559,229 and pay interest each July 1 and January 1. The company uses the effect...

Q: Assume that the bonds in BE14-15 were issued for $

Assume that the bonds in BE14-15 were issued for $644,632 and the effective interest rate was 6%. (a) Prepare the company’s journal entry for the January 1 issuance. (b) Prepare the company’s journal...

Q: Sophia Incorporated issued a $105,000, five-year

Sophia Incorporated issued a $105,000, five-year, zero-interest-bearing note to Angelica Corp. on January 1, 2017 and received $52,000 cash. Sophia uses the effective interest method. (a) Using a fina...

Q: Desrocher Ltd. issued an instalment note on January 1, 2017

Desrocher Ltd. issued an instalment note on January 1, 2017 (with a required yield of 9%) in exchange for land that it purchased from Safayeni Ltd. Safayeni’s real estate agent had listed the land on...

Q: Sunshine Incorporated provides solar energy services to Toronto. Sunshine needed to

Sunshine Incorporated provides solar energy services to Toronto. Sunshine needed to buy additional solar energy panels to meet the demand for its energy product. The government of Ontario offered an i...

Q: Ramey Corporation is a diversified public company with nationwide interests in commercial

Ramey Corporation is a diversified public company with nationwide interests in commercial real estate development, banking, copper mining, and metal fabrication. The company has offices and operating...

Q: On June 1, 2017, MacDougall Corporation approached Silverman Corporation about

On June 1, 2017, MacDougall Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $240,000 for the land and MacDougall saw that there was some fl...

Q: On January 1, 2017, Salem Corp. issued $1

On January 1, 2017, Salem Corp. issued $1.1 million of five-year, zero-interest-bearing notes along with warrants to buy 1 million common shares at $22 per share. On January 1, 2017, Salem had 9.3 mil...

Q: What are the monthly payments on the loan? Construct an amortization

What are the monthly payments on the loan? Construct an amortization table for the first six months of the loan.

Q: Ramey Corporation is a diversified public company with nationwide interests in commercial

Ramey Corporation is a diversified public company with nationwide interests in commercial real estate development, banking, copper mining, and metal fabrication. The company has offices and operating...

Q: Sophia Incorporated issued a $105,000, five-year

Sophia Incorporated issued a $105,000, five-year, zero-interest-bearing note to Angelica Corp. on January 1, 2020, and received $52,000 cash. Sophia uses the effective interest method. a. Using 1. a...

Q: On January 1, 2020, Quinton Corporation issued $600,

On January 1, 2020, Quinton Corporation issued $600,000 of 7% bonds that are due in 10 years. The bonds were issued for $559,229 and pay interest each July 1 and January 1. The company uses the effect...

Q: Assume that the bonds in BE14.15 were issued for $

Assume that the bonds in BE14.15 were issued for $644,632 and the effective interest rate was 6%. a. Prepare Quinton Corporation's journal entry for the January 1 issuance. b. Prepare the company's jo...

Q: Sunshine Incorporated provides solar energy services to Toronto. Sunshine needed to

Sunshine Incorporated provides solar energy services to Toronto. Sunshine needed to buy additional solar energy panels to meet the demand for its energy product. The Government of Ontario offered an i...

Q: Desrocher Ltd. issued an instalment note on January 1, 2020

Desrocher Ltd. issued an instalment note on January 1, 2020 (with a required yield of 9%) in exchange for land that it purchased from Safayeni Ltd. Safayeni's real estate agent had listed the land on...

Q: On December 31, 2020, Green Bank enters into a debt

On December 31, 2020, Green Bank enters into a debt restructuring agreement with Troubled Inc., which is now experiencing financial trouble. The bank agrees to restructure a $2-million, 12% note recei...

Q: On June 1, 2020, MacDougall Corporation approached Silverman Corporation about

On June 1, 2020, MacDougall Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $240,000 for the land and MacDougall saw that there was some fl...

Q: On January 1, 2020, Salem Corp. issued $1

On January 1, 2020, Salem Corp. issued $1.1 million of five-year, zero-interest-bearing notes along with warrants to buy 1 million common shares at $22 per share. On January 1, 2020, Salem had 9.3 mil...

Q: Tano Company issues bonds with a par value of $180,

Tano Company issues bonds with a par value of $180,000 on January 1, 2020. The bonds’ annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in thre...

Q: Duval Co. issues four-year bonds with a $100

Duval Co. issues four-year bonds with a $100,000 par value on January 1, 2020, at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31. 1. P...

Q: Wookie Company issues 10%, five-year bonds, on January

Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entr...

Q: Quatro Co. issues bonds dated January 1, 2020, with

Quatro Co. issues bonds dated January 1, 2020, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in t...

Q: On January 1, 2020, Eagle Company borrows $100,

On January 1, 2020, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523, consisting of accrued interest and principal on D...

Q: Stanford issues bonds dated January 1, 2020, with a par

Stanford issues bonds dated January 1, 2020, with a par value of $500,000. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in thre...

Q: Quatro Co. issues bonds dated January 1, 2020, with

Quatro Co. issues bonds dated January 1, 2020, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in t...

Q: Refer to the bond details in Problem 10-1A, except

Refer to the bond details in Problem 10-1A, except assume that the bonds are issued at a price of $4,895,980. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. For each...

Q: Ellis Company issues 6.5%, five-year bonds dated

Ellis Company issues 6.5%, five-year bonds dated January 1, 2020, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market...

Q: Legacy issues $325,000 of 5%, four-year

Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. Required 1. Prep...

Q: On November 1, 2020, Norwood borrows $200,000

On November 1, 2020, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $50,091 each year on October 31. Require...

Q: Refer to the bond details in Problem 10-4A.

Refer to the bond details in Problem 10-4A. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be recognized over the bonds’...

Q: Refer to the bond details in Problem 10-3A.

Refer to the bond details in Problem 10-3A. Required 1. Compute the total bond interest expense over the bonds’ life. 2. Prepare an effective interest amortization table like the one in Exhibit 10B.2...

Q: Ike issues $180,000 of 11%, three-year

Ike issues $180,000 of 11%, three-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. They are issued at $184,566 when the market rate is 10%. Required 1. Prep...

Q: Romero issues $3,400,000 of 10%, 10

Romero issues $3,400,000 of 10%, 10-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,010,000. Required 1. Prepare the...

Q: Refer to the bond details in Problem 10-1B, except

Refer to the bond details in Problem 10-1B, except assume that the bonds are issued at a price of $4,192,932. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. For each...

Q: Ripkin Company issues 9%, five-year bonds dated January 1

Ripkin Company issues 9%, five-year bonds dated January 1, 2020, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market...

Q: Gomez issues $240,000 of 6%, 15-year

Gomez issues $240,000 of 6%, 15-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. They are issued at $198,494 when the market rate is 8%. Required 1. Prepare...

Q: On October 1, 2020, Gordon borrows $150,000

On October 1, 2020, Gordon borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal payments of $60,316 each year on September 30. Requi...

Q: Refer to the bond details in Problem 10-4B.

Refer to the bond details in Problem 10-4B. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be recognized over the bonds’...

Q: Refer to the bond details in Problem 10-3B.

Refer to the bond details in Problem 10-3B. Required 1. Compute the total bond interest expense over the bonds’ life. 2. Prepare an effective interest amortization table like the one in Exhibit 10B.2...

Q: Valdez issues $450,000 of 13%, four-year

Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and December 31. They are issued at $493,608 when the market rate is 10%. Required 1. Pr...

Q: Snap Company issues 10%, five-year bonds, on January

Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entrie...

Q: On January l, 2018, Mamood Ltd. paid $322

On January l, 2018, Mamood Ltd. paid $322,744.44 for 12% bonds of Variation Ltd. with a maturity value of $300,000. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2018,...

Q: Minute Corp., a Canadian public corporation that follows IFRS, reported

Minute Corp., a Canadian public corporation that follows IFRS, reported the following on its December 31, 2019 statement of financial position: Additional information: 1. The bond amortization table u...

Q: Monk Company, a dealer in machinery and equipment, leased equipment

Monk Company, a dealer in machinery and equipment, leased equipment with a 10-year life to Leland Inc. on July 1, 20X1. The fair value of the leased equipment at July 1, 20X1, is $1,849,591. The lease...

Q: Mickelson reports on a calendar-year basis. On January 1

Mickelson reports on a calendar-year basis. On January 1, 20X1, Mickelson Corporation entersinto a three-year lease with annual payments of $30,000. The first payment will be due on December 31, 20X1....

Q: Fish Spotters, Inc., purchased a single-engine aircraft from

Fish Spotters, Inc., purchased a single-engine aircraft from National Aviation on January 1, 20X0. Fish Spotters paid $55,000 cash and signed a three-year, 8% note for the remaining $45,000. Terms of...

Q: Bunker Company negotiated a lease with Gilbreth Company that begins on January

Bunker Company negotiated a lease with Gilbreth Company that begins on January 1, 20X1. The lease term is three years, and the asset’s economic life is five years. The equipment wascustomized, and it...

Q: Moore Company sells and leases its computers. Moore’s cost and sales

Moore Company sells and leases its computers. Moore’s cost and sales price per machine are $1,200 and $3,000, respectively. At the end of three years, the expected residual value is $400,which is guar...

Q: On October 1, 20X1, Brady Consulting leases unmodified equipment from

On October 1, 20X1, Brady Consulting leases unmodified equipment from Damon Corporation. The lease covers four years and requires lease payments of $73,046, beginning on September 30, 20X2. The unguar...

Q: On January 1, 20X1, Dwyer Company leases space for a

On January 1, 20X1, Dwyer Company leases space for a donut shop. The lease is for five yearswith payments to be made at the beginning of each year. The lease calls for Dwyer to pay $10,000 on January...

Q: On January 1, 20X1, Bonduris Company leases warehouse space in

On January 1, 20X1, Bonduris Company leases warehouse space in Oakland, CA. The lease isfor six years with payments to be made at the beginning of each year. The lease calls for Bonduris to pay $15,00...

Q: On January 1, 20X1, Bill Inc. leases manufacturing equipment

On January 1, 20X1, Bill Inc. leases manufacturing equipment from Beatrix Corporation. The lease covers seven years and requires annual lease payments of $51,000, beginning on January 1, 20X1. The ung...

Q: On January 1, 20X1, Bare Trees Company signed a three

On January 1, 20X1, Bare Trees Company signed a three-year non cancelable lease with Dreams Inc. The lease calls for three payments of $62,258.09 to be made at each year-end. The leasepayments include...

Q: On January 1, 20X1, Trask Co.signs an agreement

On January 1, 20X1, Trask Co.signs an agreement to lease office equipment from Coleman Inc. forthree years with payments of $193,357 beginning December 31, 20X1. The equipment’s fair value is$500,000...

Q: On July 1, 20X1, Burgundy Studios leases camera equipment from

On July 1, 20X1, Burgundy Studios leases camera equipment from Corning stone Corporation. Corning stone had to make significant changes to the equipment to meet Burgundy’s needs, andit would be signif...

Q: Hoppie Products signed a contract with Coleman Manufacturing to design, develop

Hoppie Products signed a contract with Coleman Manufacturing to design, develop, and produce a specialized plastic molding machine for its factory operations. The machine is not currently sold to the...

Q: On January 1, 2018, Mobile Technology, Incorporated issued $

On January 1, 2018, Mobile Technology, Incorporated issued $850,000 of $1,000 par value, 6%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment du...

Q: Using the information provided in E14-13, complete the following

Using the information provided in E14-13, complete the following requirements assuming that the effective rate of interest for convertible bonds is 4% on the date of issue. Required: a. Determine th...

Q: Using the information provided in E14-13, complete the following

Using the information provided in E14-13, complete the following requirements assuming that Mobile Technology reports under IFRS. Required: a. Determine the present value of bond cash flows. b. Prep...

Q: EA&Y, Inc. borrowed $350,000 on

EA&Y, Inc. borrowed $350,000 on January 1, 2018, with a 6% interest rate. It will make a payment of $101,007 annually (beginning December 31, 2018) until the note is paid off on December 31, 2021. The...

Q: On January 1, 2018, McMillan Corporation issued $86,

On January 1, 2018, McMillan Corporation issued $86,000 par value, 6-year bonds with a 0% stated interest rate. The discount on the bonds is amortized annually each December 31. The market rate of int...

Q: On January 1, 2018, Sohape Corporation issued $100,

On January 1, 2018, Sohape Corporation issued $100,000 par value, 5-year bonds with a 3% stated interest rate. Interest is paid annually each December 31. The market rate of interest on the date of th...

Q: On January 1, 2018, Mill Road Corporation issued $300

On January 1, 2018, Mill Road Corporation issued $300,000 par value, 5%, 5-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the...

Q: On January 1, 2018, the Landon Capital Partners issued $

On January 1, 2018, the Landon Capital Partners issued $600,000 par value, 6%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end o...

Q: On January 1, 2018, McMillan Corporation issued $100,

On January 1, 2018, McMillan Corporation issued $100,000 par value, 5-year, zero-coupon bonds. The market rate of interest on the date of the bond issue was 6%. The company’s fiscal year ends on Decem...

Q: On January 1, 2018, Faxico, Inc. issued $

On January 1, 2018, Faxico, Inc. issued $4,500,000 par value, 8%, 5-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period...

Q: On January 1, 2018, Stark Incorporated issued $1,

On January 1, 2018, Stark Incorporated issued $1,500,000 par value, 5%, 7-year bonds (i.e., there were 1,500 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 an...

Q: Using the information provided in BE14-14, prepare the amortization

Using the information provided in BE14-14, prepare the amortization table for the first 2 years assuming that Stark uses the straight-line method. Data from BE14-14: On January 1, 2018, Stark Incorpo...

Q: Using the information provided in BE14-14, determine the issue

Using the information provided in BE14-14, determine the issue price of the bonds assuming that the market rate of interest is 4%, and prepare the amortization table for the first 2 years assuming tha...

Q: Using the information provided in BE14-14, prepare the amortization

Using the information provided in BE14-14, prepare the amortization table for the first 2 years assuming that Stark uses the straight-line method Data from BE14-14: On January 1, 2018, Stark Incorpor...

Q: On January 1, 2017, Antonia Lee Stores, Inc.,

On January 1, 2017, Antonia Lee Stores, Inc., borrowed $700,000 and immediately received the full amount. The note carried a 7% interest rate and requires annual payments of $146,857 beginning on Dece...

Q: On January 1, 2018, Mesa Machinery Corporation issued 75 of

On January 1, 2018, Mesa Machinery Corporation issued 75 of 12-year, 12% convertible bonds at par. Each bond had a par value of $1,000 and pays interest annually on December 31. Because the bonds were...

Q: Freiberg Associates issued $700,000 par value, 4-

Freiberg Associates issued $700,000 par value, 4-year, zero-coupon bonds on January 1, 2018. The market rate of interest on the date of the bond issue was 4%. Bond issue costs are $3,600. The company’...

Q: On January 1, 2018, Tara Clothing Corporation issued $900

On January 1, 2018, Tara Clothing Corporation issued $900,000 par value, 5%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of...

Q: On January 1, 2018, Organic Products issued $1,

On January 1, 2018, Organic Products issued $1,200,000 par value, 7%, 5-year bonds. Interest is payable semiannually at the end of the period. The market rate of interest on the date of the bond issue...

Q: Summa Manufacturing Company issued $900,000 par value, 5

Summa Manufacturing Company issued $900,000 par value, 5%, 5-year bonds dated January 1, 2018. The bonds pay interest semiannually each June 30 and December 31. Summa issued the bonds on April 30, 201...

Q: Tyka Manufacturing Company, an IFRS reporter, issued $900,

Tyka Manufacturing Company, an IFRS reporter, issued $900,000 par value, 5%, 5-year bonds dated January 1, 2018. The bonds pay interest semiannually each June 30 and December 31. Tyka received cash of...

Q: On January 1, 2018, Super View Video, Incorporated issued

On January 1, 2018, Super View Video, Incorporated issued $1,550,000 of $1,000 par value, 8%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment d...

Q: Capitol Corporation acquired $6,735,000 par value,

Capitol Corporation acquired $6,735,000 par value, 6%, 5-year bonds on their date of issue, January 1 of the current year. The market rate at the time of issue was 10%, and interest is paid semiannual...

Q: Freder Software Group acquired $1,550,000 par value

Freder Software Group acquired $1,550,000 par value, zero coupon, 5-year bonds on their date of issue, January 1 of the current year. The market rate at the time of issue was 6%, and interest is compo...

Q: Locatelli Partners (LP) agreed to lease a piece of heavy

Locatelli Partners (LP) agreed to lease a piece of heavy equipment to Sonata Company on January 1. LP paid $195,100 to produce the machine and carried it at this amount in its inventory. This machine...

Q: On January 1, 2018, the lease commencement date, Curran

On January 1, 2018, the lease commencement date, Curran Manufacturing Corporation (CMC) agreed to lease a piece of nonspecialized, heavy equipment to Oates Products, Inc. CMC paid $900,000 to manufact...

Q: Florida Energy Restoration, Ltd. (FER) enters into a

Florida Energy Restoration, Ltd. (FER) enters into a lease agreement on January 1, 2018, to lease standard power generators from R&R Electric, Inc. The terms of the lease follow. • The term of the le...

Q: On January 1, 2018, JLOU Company leases a fleet of

On January 1, 2018, JLOU Company leases a fleet of stock delivery vehicles from Dolt Motors, Inc. Under the terms of the lease, JLOU must pay $65,000 on January 1 of each year, beginning on January 1,...

Q: Using the same information as found in P18-4, assume

Using the same information as found in P18-4, assume that the lease contains a guaranteed residual value of $15,000. The lessee guarantees the residual value. Required: a. Compute the annual rent pa...

Q: On January 1, 2018, Moorecraft Finance Company agreed to lease

On January 1, 2018, Moorecraft Finance Company agreed to lease a piece of machinery to Ward Construction Products, Inc. Moorecraft paid $1,554,516 to acquire the machine from the manufacturer and carr...

Q: On May 1, 2018, Gia Equipment Manufacturers (GEM)

On May 1, 2018, Gia Equipment Manufacturers (GEM) agreed to lease nonspecialized machinery to Jason Associates. GEM paid $2,000,000 to produce the machine and carries it at this amount in its inventor...

Q: Using the information provided in E16-2, prepare the fair

Using the information provided in E16-2, prepare the fair value adjustment journal entries at the end of the second and third years after the acquisition of the investment assuming that the fair value...

Q: On January 1, 2018, Temple Leasing Company (TLC)

On January 1, 2018, Temple Leasing Company (TLC) acquired a fleet of stock vehicles to be leased to Delaware River Company. TLC paid $275,000 to acquire the vehicles, which is also the fair value of t...

Q: On January 1, 2018, Lima Leasing Company (LLC)

On January 1, 2018, Lima Leasing Company (LLC) acquired an airplane to be leased to LA Sky Company. LLC paid $950,000 to acquire the plane, which is also its fair value. The lease terms follow. • Ann...

Q: Seal Container Corporation (SCC) signed a lease agreement on January

Seal Container Corporation (SCC) signed a lease agreement on January 1, 2018, to lease new forklift equipment. The terms of the lease follow. • The lease has a term of 10 years. There are no purchase...

Q: On January 1, 2019, Kane Kite Company leased a nonspecialized

On January 1, 2019, Kane Kite Company leased a nonspecialized fabric-cutting machine from Stewart Standard, Inc. Under the terms of the lease, Kane Kite must pay $200,000 on January 1 of each year, st...

Q: On January 1, Gump Sales Company entered into an agreement to

On January 1, Gump Sales Company entered into an agreement to lease a piece of machinery for a period of 5 years from Smokey Boy Equipment (SBE). The machine is not specialized for Gump’s business nee...

Q: On January 1, Dora purchases 175 of the $1,

On January 1, Dora purchases 175 of the $1,000, 7%, 15-year bonds issued by Splash City, with interest receivable semiannually on June 30 and December 31 each year. Required: Assuming the market inter...

Q: ED–11 On January 1, Splash City issues $500

ED–11 On January 1, Splash City issues $500,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. T. Bone Investment Company (TBIC) purchases all o...

Q: On January 1, Ralston Corp. issues $800,000

On January 1, Ralston Corp. issues $800,000 of 8% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Price Investment Company purchases all of the bonds a...

Q: On January 1, Twister Enterprises issues $600,000 of

On January 1, Twister Enterprises issues $600,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 7...

Q: Viking Voyager specializes in the design and production of replica Viking boats

Viking Voyager specializes in the design and production of replica Viking boats. On January 1, the company issues $3,000,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30...

Q: 5-Star Adventures Inc. financed its $1,000

5-Star Adventures Inc. financed its $1,000,000 expansion by issuing on January 1, 2020, a 5%, 10-year bond dated the same day with annual interest payments to be made each December 31. The market inte...

Q: Tahoe Tent Ltd. issued bonds with a par value of $

Tahoe Tent Ltd. issued bonds with a par value of $800,000 on January 1, 2020. The annual contract rate on the bonds was 12%, and the interest is paid semiannually. The bonds mature after three years....

Q: On December 31, 2020, Sack Port Ventures Inc. borrowed

On December 31, 2020, Sack Port Ventures Inc. borrowed $90,000 by signing a four-year, 5% installment note. The note requires annual payments of accrued interest and equal amounts of principal on Dece...

Q: On December 31, 2020, KEC Environmental Corp. borrowed $

On December 31, 2020, KEC Environmental Corp. borrowed $100,000 by signing a four-year, 5% installment note. The note requires four equal payments of accrued interest and principal on December 31 of e...

Q: Huskey Mining Corporation issued bonds with a par value of $105

Huskey Mining Corporation issued bonds with a par value of $105,000 on January 1, 2020. The annual contract rate on the bonds is 9%, and the interest is paid semiannually. The bonds mature after three...

Q: SweetFish Corp. issued bonds with a par value of $820

SweetFish Corp. issued bonds with a par value of $820,000 and a five-year life on May 1, 2020. The contract interest rate is 7%. The bonds pay interest on October 31 and April 30. They were issued at...

Q: Banjo Education Corp. issued a 4%, $150,000

Banjo Education Corp. issued a 4%, $150,000 bond that pays interest semiannually each June 30 and December 31. The date of issuance was January 1, 2020. The bonds mature after four years. The market i...

Q: Calculations Marketing Inc. issued 8.5% bonds with a

Calculations Marketing Inc. issued 8.5% bonds with a par value of $450,000 and a five-year life on January 1, 2020, for $459,125. The bonds pay interest on June 30 and December 31. The market interest...

Q: Wind-Electric Corp. issued $940,000 of bonds

Wind-Electric Corp. issued $940,000 of bonds that pay 9.7% annual interest with two semiannual payments. The date of issuance was January 1, 2020, and the interest is paid on June 30 and December 31....

Q: Westgate Motor Homes Inc. issued bonds with a par value of

Westgate Motor Homes Inc. issued bonds with a par value of $680,000 and a five-year life on January 1, 2020. The bonds pay interest on June 30 and December 31. The contract interest rate is 8%. The ma...

Q: Winter Ltd. is authorized to issue $2,500,

Winter Ltd. is authorized to issue $2,500,000 of 4%, 10-year bonds payable. On December 31, 2018, when the market interest rate is 5%, the company issues $2,000,000 of the bonds. Winter amortizes bond...

Q: On June 30, 2018, the market interest rate is 9

On June 30, 2018, the market interest rate is 9%. Ramsey Corporation issues $550,000 of 12%, 20-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizes bond premiu...

Q: Energy Ltd. is authorized to issue $3,000,

Energy Ltd. is authorized to issue $3,000,000 of 1%, 10-year bonds payable. On December 31, 2018, when the market interest rate is 8%, the company issues $2,400,000 of the bonds. Energy amortizes bond...

Q: On June 30, 2018, the market interest rate is 9

On June 30, 2018, the market interest rate is 9%. Randall Corporation issues $600,000 of 10%, 15-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizes bond premi...

Q: On December 31, 2018, Mainland Corporation issues 6%, 10

On December 31, 2018, Mainland Corporation issues 6%, 10-year convertible bonds payable with a face value of $4,000,000. The semiannual interest dates are June 30 and December 31. The market interest...

Q: The notes to the Alliance Ltd. financial statements reported the following

The notes to the Alliance Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Alliance amortizes bond discounts using the effective-interest method...

Q: The notes to the Thorson Ltd. financial statements reported the

The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Thorson amortizes bond discounts using the effective-interest method a...

Q: On December 31, 2018, Herndon Corporation issues 6%, 10

On December 31, 2018, Herndon Corporation issues 6%, 10-year convertible bonds payable with a face value of $1,000,000. The semiannual interest dates are June 30 and December 31. The market interest...

Q: Pearce Corporation issued $580,000 of 6%, 10-

Pearce Corporation issued $580,000 of 6%, 10-year bonds payable on March 31, 2019. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually. Pearce Corporation...

Q: Use the amortization table that you prepared for Pearce Corporation’s bonds in

Use the amortization table that you prepared for Pearce Corporation’s bonds in S9-6 to answer the following questions: 1. How much cash did Pearce Corporation borrow on March 31, 2019? How much cash w...

Q: Leon Corporation issued $400,000 of 10%, 10-

Leon Corporation issued $400,000 of 10%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 8%, and the bonds pay interest semiannually (on June 30 and Dece...

Q: Use the amortization table that you prepared for Leon Corporation’s bonds in

Use the amortization table that you prepared for Leon Corporation’s bonds in S9-8 to answer the following questions: 1. How much cash did Leon Corporation borrow on January 1, 2019? How much cash will...

Q: On January 1, $30,000 cash is borrowed from

On January 1, $30,000 cash is borrowed from a bank in return for a 12% installment note with 36 monthly payments of $996 each. (1) Prepare an amortization table for the first three months of this inst...

Q: Stanford issues bonds dated January 1, 2021, with a par

Stanford issues bonds dated January 1, 2021, with a par value of $500,000. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in thre...

Q: Quarto Co. issues bonds dated January 1, 2021, with

Quarto Co. issues bonds dated January 1, 2021, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in t...

Q: Tango Company issues bonds with a par value of $180,

Tango Company issues bonds with a par value of $180,000 on January 1, 2021. The bonds’ annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in thr...

Q: Dobbs Company issues 5%, two-year bonds, on December

Dobbs Company issues 5%, two-year bonds, on December 31, 2021, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to r...

Q: Duval Co. issues four-year bonds with a $100

Duval Co. issues four-year bonds with a $100,000 par value on January 1, 2021, at a price of $95,952. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31. 1. P...

Q: Quarto Co. issues bonds dated January 1, 2021, with

Quarto Co. issues bonds dated January 1, 2021, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in t...

Q: On January 1, 2021, Eagle Company borrows $100,

On January 1, 2021, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523, consisting of accrued interest and principal on D...

Q: Ellis Company issues 6.5%, five-year bonds dated

Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market...

Q: Legacy issues $325,000 of 5%, four-year

Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. Required 1. Pre...

Q: On January 1, 2021, Norwood borrows $200,000

On January 1, 2021, Norwood borrows $200,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $50,091 each year on December 31. Requir...

Q: On January 1, McNeil Company borrows $100,000 cash

On January 1, McNeil Company borrows $100,000 cash by signing a four-year, 9% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 for ea...

Q: Refer to the bond details in Problem 14-4A.

Refer to the bond details in Problem 14-4A. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be recognized over the bonds...

Q: Refer to the bond details in Problem 14-3A.

Refer to the bond details in Problem 14-3A. Required 1. Compute the total bond interest expense over the bonds’ life. 2. Prepare an effective interest amortization table like the one in Exhibit 14B.2...

Q: Ike issues $180,000 of 11%, three-year

Ike issues $180,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $184,566 when the market rate is 10%. Required 1. Pre...

Q: Romero issues $3,400,000 of 10%, 10

Romero issues $3,400,000 of 10%, 10-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,010,000. Required 1. Prepare the...

Q: Ripken Company issues 9%, five-year bonds dated January 1

Ripken Company issues 9%, five-year bonds dated January 1, 2021, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market...

Q: Gomez issues $240,000 of 6%, 15-year

Gomez issues $240,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $198,494 when the market rate is 8%. Required 1. Prepar...

Q: On January 1, 2021, Gordon borrows $150,000

On January 1, 2021, Gordon borrows $150,000 cash from a bank by signing a three-year installment note bearing 10% interest. The note requires equal payments of $60,316 each year on December 31. Requi...

Q: On January 1, JCCC borrows $130,000 cash by

On January 1, JCCC borrows $130,000 cash by signing a 4-year, 5% installment note. The note requires four equal payments consisting of accrued interest and principal on December 31 for each of the nex...

Q: Refer to the bond details in Problem 14-4B.

Refer to the bond details in Problem 14-4B. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be recognized over the bonds...

Q: Refer to the bond details in Problem 14-3B.

Refer to the bond details in Problem 14-3B. Required 1. Compute the total bond interest expense over the bonds’ life. 2. Prepare an effective interest amortization table like the one in Exhibit 14B.2...

Q: Valdez issues $450,000 of 13%, four-year

Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $493,608 when the market rate is 10%. Required 1. P...

Q: The following are selected items from the accounting records of Denver Chocolates

The following are selected items from the accounting records of Denver Chocolates for the year ended December 31, 2021. Other Information: 1. The note payable to Northwest Bank is due in 60 days. Ar...

Q: On September 1, 2021, Speedy Lube signed a 30-

On September 1, 2021, Speedy Lube signed a 30-year, $1,080,000 mortgage note payable to Johnstown Bank and Trust in conjunction with the purchase of a building and land. The mortgage note calls for in...

Q: Glen Pool Club, Inc., has an installment loan outstanding with

Glen Pool Club, Inc., has an installment loan outstanding with a current balance of $150.000. The company makes monthly installments of $1,543, which include interest computed at an annual rate of 6 p...

Q: On October 1, 2021, Jenco signed a four-year

On October 1, 2021, Jenco signed a four-year, $100,000 note payable to Vicksburg State Bank in conjunction with the purchase of equipment. The note calls for interest at an annual rate of 12Â&nb...

Q: The following are selected items from the accounting records of Georgia Peach

The following are selected items from the accounting records of Georgia Peach for the year ended December 31, 2021. Other Information 1. The note payable to Smithfield Bank is due in 60 days. Arrang...

Q: Assume Swift Company acquires a machine with a fair value of $

Assume Swift Company acquires a machine with a fair value of $100,000 on January 1 of Year 1 by signing a five-year lease. Swift must make payments of $16,275 each December 31. The appropriate interes...

Q: Use an amortization table (go to www.bankrate.com

Use an amortization table (go to www.bankrate.com and click on “amortization calculator” under “Mortgages” or use another online source) that determines the monthly mortgage payment based on a specifi...

Q: On December 31, 2018, Kaplan, Inc., issues $

On December 31, 2018, Kaplan, Inc., issues $500,000 of 9% bonds that pay interest semiannually and mature in IO years (December 31, 2028). a. Using the Excel PV worksheet function, compute the issue p...