# On the first day of its fiscal

Amortize Discount by Interest Method

On the first day of its fiscal year, Ebert Company issued \$20,000,000 of 5-year, 11% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Ebert receiving cash of \$19,264,099. The company uses the interest method.

a.  Journalize the entries to record the following:

1.  Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

 Cash Discount on Bonds Payable Bonds Payable

First semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

 Interest Expense Discount on Bonds Payable Cash

Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

 Interest Expense Discount on Bonds Payable Cash

Compute the amount of the bond interest expense for the first year. Round to the nearest dollar.

 Annual interest paid Discount amortized Interest expense for first year

# On the first day of its fiscal

Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method

On the first day of its fiscal year, Jacinto Company issued \$6,500,000 of six-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Jacinto Company receiving cash of \$6,194,985.

a.  Journalize the entries to record the following:

1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment.
3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment.

If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.

# On the first day of its fiscal

On the first day of its fiscal year, Chin Company issued \$17,000,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of \$15,777,966.

a.  Journalize the entries to record the following:

1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)

If an amount box does not require an entry, leave it blank.

 1. Cash fill in the blank 19cb9903707bf8f_2 fill in the blank 19cb9903707bf8f_3 Discount on Bonds Payable fill in the blank 19cb9903707bf8f_5 fill in the blank 19cb9903707bf8f_6 Bonds Payable fill in the blank 19cb9903707bf8f_8 fill in the blank 19cb9903707bf8f_9 2. Interest Expense fill in the blank 19cb9903707bf8f_11 fill in the blank 19cb9903707bf8f_12 Discount on Bonds Payable fill in the blank 19cb9903707bf8f_14 fill in the blank 19cb9903707bf8f_15 Cash fill in the blank 19cb9903707bf8f_17 fill in the blank 19cb9903707bf8f_18 3. Interest Expense fill in the blank 19cb9903707bf8f_20 fill in the blank 19cb9903707bf8f_21 Discount on Bonds Payable fill in the blank 19cb9903707bf8f_23 fill in the blank 19cb9903707bf8f_24 Cash fill in the blank 19cb9903707bf8f_26 fill in the blank 19cb9903707bf8f_27

b.  Determine the amount of the bond interest expense for the first year.

# On the first day of its fiscal

On the first day of its fiscal year, Chin Company issued \$17,000,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Chin receiving cash of \$15,777,966.

a.  Journalize the entries to record the following:

1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)

If an amount box does not require an entry, leave it blank.

 1. Cash fill in the blank 19cb9903707bf8f_2 fill in the blank 19cb9903707bf8f_3 Discount on Bonds Payable fill in the blank 19cb9903707bf8f_5 fill in the blank 19cb9903707bf8f_6 Bonds Payable fill in the blank 19cb9903707bf8f_8 fill in the blank 19cb9903707bf8f_9 2. Interest Expense fill in the blank 19cb9903707bf8f_11 fill in the blank 19cb9903707bf8f_12 Discount on Bonds Payable fill in the blank 19cb9903707bf8f_14 fill in the blank 19cb9903707bf8f_15 Cash fill in the blank 19cb9903707bf8f_17 fill in the blank 19cb9903707bf8f_18 3. Interest Expense fill in the blank 19cb9903707bf8f_20 fill in the blank 19cb9903707bf8f_21 Discount on Bonds Payable fill in the blank 19cb9903707bf8f_23 fill in the blank 19cb9903707bf8f_24 Cash fill in the blank 19cb9903707bf8f_26 fill in the blank 19cb9903707bf8f_27

Feedback

b.  Determine the amount of the bond interest expense for the first year.
\$fill in the blank 2ee79df34f9dfc0_1

c.  Why was the company able to issue the bonds for only \$15,777,966 rather than for the face amount of \$17,000,000?
The market rate of interest is greater than  the contract rate of interest. Therefore, inventors are not  willing to pay the full face amount of the bonds.

# On the first day of its fiscal

Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method

On the first day of its fiscal year, Chin Company issued \$17,800,000 of five-year, 12% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 14%, resulting in Chin receiving cash of \$16,549,813.

a.  Journalize the entries to record the following:

1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)

If an amount box does not require an entry, leave it blank.

 1. Cash Discount on Bonds Payable Bonds Payable 2. Interest Expense Discount on Bonds Payable Cash 3. Interest Expense Discount on Bonds Payable Cash

b.  Determine the amount of the bond interest expense for the first year.

# On the first day of its fiscal

On the first day of its fiscal year, Ebert Company issued \$12,500,000 of 10-year, 7% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Ebert receiving cash of \$10,873,974. The company uses the interest method.

Required:
a. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles.

 1 Sale of the bonds. 2 First semiannual interest payment, including amortization of discount. Round to the nearest dollar. 3 Second semiannual interest payment, including amortization of discount. Round to the nearest dollar.
b. Compute the amount of the bond interest expense for the first year.
c. Explain why the company was able to issue the bonds for only \$10,873,974 rather than for the face amount of \$12,500,000.

# On the first day of its fiscal

On the first day of its fiscal year, Chin Company issued \$13,300,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 10%, resulting in Chin receiving cash of \$12,786,458.

a.  Journalize the entries to record the following:

1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)

If an amount box does not require an entry, leave it blank.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.