Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2016, calvert company issues 9%, $10

On January 1, 2016, Calvert Company issues 9%, $100,000 face value bonds for $103,673.08, a price...

70.2K

Verified Solution

Question

Accounting

On January 1, 2016, Calvert Company issues 9%, $100,000 facevalue bonds for $103,673.08, a price to yield 7%. The bonds matureon December 31, 2017. Interest is paid semiannually on June 30 andDecember 31.

Required:

1.Prepare a bond interest expense and premium amortizationschedule using the straight-line method.
2.Prepare a bond interest expense and premium amortizationschedule using the effective interest method.
3.Prepare the journal entries to record the interest payments onJune 30, 2016, and December 31, 2016, using both methods.

Answer & Explanation Solved by verified expert
3.9 Ratings (591 Votes)
Requirement 1 Amortization Schedule StraightLine Year Cash interest Interest expense Premium Amortization Carrying amount 01012016 10367380 06302016 450000 358155 91845 10275535 12312016 450000 358155 91845 10183690 06302017 450000 358155 91845 10091845 12312017 450000 358155 91845 10000000 Cash interest 1000000 x    See Answer
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In the reduction of benzil, three isomers of hydrobenzoin were produced. Despite the fact that all...

Chemistry
Q

PYTHON. Create a function that accepts a filename where in each line there is a name...

Programming
Q

A five metre tall, 1 m diameter Flettner rotor mounted on a small cargo vessel, spins...

Mechanical Engineering
Q

Present Value of Bonds Payable; Premium Moss Co. issued $100,000 of five-year, 11% bonds with interest payable...

Accounting
Q

During the Covid 19 period households saving went up significantly and at the same time...

Biology
Q

A disc of mass M and radius R is rolling without slipping with angular speed...

Physics
Q

0 There is a one to one correspondence between S and St conclude that any...

Basic Math
Q

Rewrite the following in an equivalent form 1 log12 144 2 Answer type your answer...

Basic Math
Q

The rabbit population of Springfield, Ohio was 144,000 in 2016. It is expected to decrease...

Basic Math
Q

Posting errors are identified in the following table. In column (1), enter the amount of...

Accounting
Q

Finance Q-1 The following information is related to YZ Company Ltd, for the...

Finance
Q

Subject - project Management Q3 A) What is the need of a collaborator in setting...

Finance