E9-24A(Learning Objective 2: Issue bonds payable (discount), pay and accrue interest, and amortize bonds by the straight...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

  1. Order Custom Essay, Course Work, Research and Term Papers

Issue bonds payable (discount), pay and accrue interest

April 14, 2018

E9-24A
(Learning Objective 2: Issue bonds payable (discount), pay and accrue interest, and amortize bonds by the straight-line method) On January 31, Doherty Logistics, Inc., issued five-year, 7% bonds payable with a face value of $8,000,000. The bonds were issued at 96 and pay interest on January 31 and July 31. Doherty Logistics, Inc., amortizes bonds by the straight-line method. Record (a) issuance of the bonds on January 31, (b) the semiannual interest payment and amortization of bond discount on July 31, and (c) the interest accrual and discount amortization on December 31.
E9-25A
(Learning Objective 2: Measure cash amounts for a bond payable (premium); amortize the bonds by the straight-line method) Town Bank has $100,000 of 7% debenture bonds outstanding. The bonds were issued at 105 in 2012 and mature in 2032.
? Requirements
1. How much cash did Town Bank receive when it issued these bonds?
2. How much cash in total will Town Bank pay the bondholders through the maturity date of the bonds?
3. Take the difference between your answers to Requirements 1 and 2. This difference represents Town Bank’s total interest expense over the life of the bonds.
4. Compute Town Bank’s annual interest expense by the straight-line amortization method. Multiply this amount by 20. Your 20-year total should be the same as your answer to Requirement 3.
E9-26A
(Learning Objective 2: Issue bonds payable (discount), record interest payments and the related bond amortization using the effective-interest method) Team Sports Ltd. is authorized to issue $5,000,000 of 5%, 10-year bonds payable. On December 31, 2012, when the market interest 559
560rate is 6%, the company issues $4,000,000 of the bonds and receives cash of $3,702,450. Team Sports Ltd. amortizes bond discount by the effective-interest method. The semiannual interest dates are June 30 and December 31.

1. Prepare a bond amortization table for the first four semiannual interest periods.
2. Record issuance of the bonds payable on December 31, 2012; the first semiannual interest payment on June 30, 2013; and the second payment on December 31, 2013.

E9-27A
(Learning Objective 2: Issue bonds payable (premium), record interest payment and the related bond amortization using the effective interest method) 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 Place Sports Ltd. amortizes bonds by the effective-interest method.
? Requirements
1. Prepare a bond amortization table for the first four semiannual interest periods.
2. Record the issuance of bonds payable on June 30, 2012; the payment of interest on December 31, 2012; and the payment of interest on June 30, 2013.










OUR SERVICE CHARTER






  • Free Revisions

    The papers that we deliver usually reflect a high quality level. However, there is always a room for any additional fine-tuning touch in line with a client’s preference without any additional charges. To begin with, a client has discretion to make a choice on their preferred top writer from our team. Such a writer could have handled past work for the client and received a positive review from the same. It means that the client has confidence of the quality of service that the writer delivers. Secondly, a client has an option of making use of our editing services. Our editors are always on standby to revise the paper and ensure that it matches with the expectations of a client that the instruction brief had detailed. The revision covers content adjustment that removes off-topic details, addition of sources, removal of language style errors, and assessment of the referencing style in order to enhance compliance.

  • Excellent Quality Work

    Grammar is one of the elements that we take seriously in our service delivery. Beside the use of spell checkers, we progressively take our writers through the essentials of a quality paper that features information clarity. Importantly, we encourage our writers to avoid coming up with a paper that deviates from the elements that appear on the client’s instruction brief. It means that the papers that we deliver denote well researched information that is rich in details. Additionally, the papers usually contain exhaustive details on any instruction that a client submitted. It is the tireless application of our writers’ efforts that makes us stand out when it comes to the delivery of excellent quality work. Notably, our writers use quality resources when digging up information that a paper requires. They are usually aware of the sources that contain rich information. Our past clients have proved that we give nothing short of quality work through giving us a positive feedback.

  • 100% Confidentiality

    We mind about the interests of our clients holistically. It is for this reason that we maintain high-level confidentiality in regard to our clients’ personal information. Importantly, we use the information for purposes that relate with our services only. The only information that we require relates to our clients’ writing needs. It is also important to note that our clients’ payment information is secure with us. If there is any query in regard to the payment information, then our support team is always willing to provide any clarifications in a prompt manner. Confidentiality extends to the fact that a client made use of our services. It means that we hold our relationship with our clients in secrecy. Importantly, our confidentiality measures beat any advanced security measure that can identify any information regarding our relationship with our clients. It means that our clients transact with us freely without any fear of information leakage.

  • Professional Academic Writers

    An academic degree is one of the qualifications that our writers hold. This is only a minimum requirement that we ask from our writers, but the team also has writers who possess higher educational credentials. It means that the team comprises of competent writers who have gone through institutions of higher learning and passed their exams. Subsequently, the writers have a good grasp of what our clients require. It is notable that our writers not only want to apply their acquired knowledge, but they are also willing to help our clients to outperform them. This is a clear indication of a team that is willing to walk an extra mile. We uphold professionalism in our operations, and our clients should look forward to receive services from a team of experts. It is the spirit of value addition that makes us to scale any heights in order to deliver and outperform our clients’ expectations.




Related Questions