acct 212 chapter 14 homework 1 rest questionr are in attached file.1

award:

0 out of

3.00 points

Problem 14-1A Computing bond price and recording issuance L.O. P1, P2,

P3

Stowers

Research issues bonds dated January 1, 2011, that pay interest semiannually

on June 30 and December 31. The bonds have a $32,000 par value and an annual

contract rate of 12%, and they mature in 10 years.

Required:

Consider

each of the following three separate situations. (Use .mhhe.com/connect/0078110874/Images/tableb.1.jpg”>Table B.1, .mhhe.com/connect/0078110874/Images/tableb.3.jpg”>Table B.3)

1.

The

market rate at the date of issuance is 10%.

(a)

Determine

the bonds’ issue price on January 1, 2011. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answer to the nearest dollar amount. Omit the “$” sign in

your response.)

(b)

Prepare

the journal entry to record their issuance. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign in

your response.)

2.

The

market rate at the date of issuance is 12%.

(a)

Determine

the bonds’ issue price on January 1, 2011. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answer to the nearest dollar amount. Omit the “$” sign in

your response.)

Issue

price

$ n/r .gif” alt=”incorrect”>

(b)

Prepare

the journal entry to record their issuance. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign in

your response.)

3.

The

market rate at the date of issuance is 14%.

(a)

Determine

the bonds’ issue price on January 1, 2011. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answer to the nearest dollar amount. Omit the “$” sign in

your response.)

Issue

price

$ n/r .gif” alt=”incorrect”>

(b)

Prepare

the journal entry to record their issuance. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign in

your response.)

rev: 03_02_2012

eBook Links (3)

Worksheet

Difficulty: Medium

Learning Objective: 14-P2 Compute and record amortization of bond

discount.

Problem 14-1A Computing bond price and recording issuance L.O. P1, P2,

P3

Learning Objective: 14-P1 Prepare entries to record bond issuance and interest

expense.

Learning Objective: 14-P3 Compute and record amortization of bond

premium.

.

award:

1.10 out of

5.00 points

Problem 14-2A Straight-line amortization of bond discount L.O. P1, P2

Heathrow

issues $3,000,000 of 6%, 15-year bonds dated January 1, 2011, that pay

interest semiannually on June 30 and December 31. The bonds are issued at a

price of $2,592,334.

Required:

1.

Prepare

the January 1, 2011, journal entry to record the bonds issuance. (Omit the “$” sign in your response.)

2(a)

For

each semiannual period, compute the cash payment. (Do not round your intermediate calculations. Omit the

“$” sign in your response.)

2(b)

For

each semiannual period, compute the the straight-line discount amortization. (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

Amount

of discount amortization

$ n/r .gif” alt=”incorrect”>

2(c)

For

each semiannual period, compute the bond interest expense. (Round your intermediate calculations and final answer to

the nearest dollar amount. Omit the “$” sign in your response.)

Bond

interest expense

$ n/r .gif” alt=”incorrect”>

3.

Determine

the total bond interest expense to be recognized over the bonds’ life. (Do not round semi-annual interest rate. Round intermediate

calculations to the nearest dollar. Omit the “$” sign in your

response.)

Total

bond interest expense

$ n/r .gif” alt=”incorrect”>

4.

Prepare

the first two years of an amortization table using the straight-line method. (Round your intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign

in your response.)

5.

Prepare

the journal entries to record the first two interest payments. (Round your intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign

in your response.)

3.

award:

0 out of

5.00 points

Problem 14-3A Straight-line amortization of bond premium L.O. P1, P3

Heathrow

issues $1,600,000 of 9%, 15-year bonds dated January 1, 2011, that pay

interest semiannually on June 30 and December 31. The bonds are issued at a

price of $1,958,394.

Required:

1.

Prepare

the January 1, 2011, journal entry to record the bonds issuance. (Omit the “$” sign in your response.)

Date

General Journal

Debit

Credit

Jan. 1

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

.gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

.gif” alt=”incorrect”>

2(a)

For

each semiannual period, compute the cash payment. (Do not round your intermediate calculations. Omit the

“$” sign in your response.)

Cash

payment

$ n/r .gif” alt=”incorrect”>

2(b)

For

each semiannual period, compute the the straight-line premium amortization. (Round your final answer to the nearest dollar amount. Omit the “$” sign in your response.)

Amount

of premium amortized

$ n/r .gif” alt=”incorrect”>

2(c)

For

each semiannual period, compute the the bond interest expense. (Round your intermediate calculations and final answer to

the nearest dollar amount. Omit the “$” sign in your response.)

Bond

interest expense

$ n/r .gif” alt=”incorrect”>

3.

Determine

the total bond interest expense to be recognized over the bonds’ life. (Do not round your intermediate calculations. Omit the

“$” sign in your response.)

Total

bond interest expense

$ n/r .gif” alt=”incorrect”>

4.

Prepare

the first two years of an amortization table using the straight-line method. (Round your intermediate calculations and final answers to

the nearest dollar amount. Omit the “$” sign in your response.)

5.

Prepare

the journal entries to record the first two interest payments. (Round your intermediate calculations and final answers to

the nearest dollar amount. Omit the “$” sign in your response.)

eBook Links (2)

Worksheet

Difficulty: Medium

Learning Objective: 14-P3 Compute and record amortization of bond

premium.

Problem 14-3A Straight-line amortization of bond premium L.O. P1, P3

Learning Objective: 14-P1 Prepare entries to record bond issuance and

interest expense.

4.

award:

0 out of

5.00 points

Problem 14-5AB Effective interest amortization of bond premium;

computing bond price L.O. P1, P3

Saturn

issues 8.5%, five-year bonds dated January 1, 2011, with a $490,000 par

value. The bonds pay interest on June 30 and December 31 and are issued at a

price of $542,250. The annual market rate is 6% on the issue date.

1.

Compute

the total bond interest expense over the bonds life. (Do not round

intermediate calculations. Omit the “$” sign in your response.)

Total

bond interest expense

$ n/r .gif” alt=”incorrect”>

2.

Prepare

an effective interest amortization table for the bonds life. (Make

sure that the unamortized premium equals to ‘0’ and the Carrying value equals

to face value of the bond in the last period. Leave no cells blank – be

certain to enter “0” wherever required. Bond interest expense in

the last period should be calculated as Cash interest paid (?) Premium

amortized. Round your answers to the nearest dollar amount. Omit the

“$” sign in your response.)

Semiannual Interest

Period-End

(A)

Cash Interest

Paid

(B)

Bond Interest

Expense

(C)

Premium

Amortization

(D)

Unamortized

Premium

(E)

Carrying

Value

1/01/2011

$ n/r .gif” alt=”incorrect”>

$ n/r .gif” alt=”incorrect”>

6/30/2011

$ n/r .gif” alt=”incorrect”>

$ n/r .gif” alt=”incorrect”>

$ n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

12/31/2011

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

6/30/2012

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

12/31/2012

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

6/30/2013

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

12/31/2013

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

6/30/2014

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

12/31/2014

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

6/30/2015

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

12/31/2015

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

Total

$ n/r .gif” alt=”incorrect”>

$ n/r .gif” alt=”incorrect”>

$ n/r .gif” alt=”incorrect”>

3.

Prepare

the journal entries to record the first two interest payments. (Round

your answers to nearest dollar amount. Omit the “$” sign in your

response.)

Date

General Journal

Debit

Credit

June 30, 2011

n/r .gif” alt=”incorrect”>

.gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

.gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

Dec. 31, 2011

n/r .gif” alt=”incorrect”>

.gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

.gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

n/r .gif” alt=”incorrect”>

4.

Use the

market rate at issuance to compute the present value of the remaining cash

flows for these bonds as of December 31, 2013. (Use .mhhe.com/connect/0078110874/Images/tableb.1.jpg”>Table B.1, .mhhe.com/connect/0078110874/Images/tableb.3.jpg”>Table B.3) (Round

“PV Factors” to 4 decimal places, intermediate and

final answers to the nearest dollar amount. Omit the “$” sign

in your response.)

Present

value

$ n/r .gif” alt=”incorrect”>

rev: 08_13_2011

eBook Links (2)

Worksheet

Difficulty: Hard

Learning Objective: 14-P3 Compute and record amortization of bond

premium.

Problem 14-5AB Effective interest amortization of bond premium;

computing bond price L.O. P1, P3

Learning Objective: 14-P1 Prepare entries to record bond issuance and

interest expense.

Problem 14-6A Straight-line amortization of bond discount L.O. P1, P2

[The following information applies to

the questions displayed below.]

Patton

issues $590,000 of 7.5%, four-year bonds dated January 1, 2011, that pay

interest semiannually on June 30 and December 31. They are issued at $542,310

and their market rate is 10% at the issue date.

Section Break

Difficulty: Hard

Learning Objective: 14-P2 Compute and record amortization of bond

discount.

Problem 14-6A Straight-line amortization of bond discount L.O. P1, P2

Learning Objective: 14-P1 Prepare entries to record bond issuance and

interest expense.

.1award:

0 out of

3.00 points Problem 14-1A Computing bond price and recording issuance L.O. P1, P2,

P3Stowers

Research issues bonds dated January 1, 2011, that pay interest semiannually

on June 30 and December 31. The bonds have a $32,000 par value and an annual

contract rate of 12%, and they mature in 10 years. Required:Consider

each of the following three separate situations. (Use .mhhe.com/connect/0078110874/Images/tableb.1.jpg”>Table B.1, .mhhe.com/connect/0078110874/Images/tableb.3.jpg”>Table B.3) 1.The

market rate at the date of issuance is 10%. (a)Determine

the bonds’ issue price on January 1, 2011. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answer to the nearest dollar amount. Omit the “$” sign in

your response.) (b)Prepare

the journal entry to record their issuance. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign in

your response.) 2.The

market rate at the date of issuance is 12%. (a)Determine

the bonds’ issue price on January 1, 2011. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answer to the nearest dollar amount. Omit the “$” sign in

your response.) Issue

price$ n/r .gif” alt=”incorrect”> (b)Prepare

the journal entry to record their issuance. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign in

your response.) 3.The

market rate at the date of issuance is 14%. (a)Determine

the bonds’ issue price on January 1, 2011. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answer to the nearest dollar amount. Omit the “$” sign in

your response.) Issue

price$ n/r .gif” alt=”incorrect”> (b)Prepare

the journal entry to record their issuance. (Round

“PV Factors” to 4 decimal places, intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign in

your response.)

rev: 03_02_2012

eBook Links (3)WorksheetDifficulty: MediumLearning Objective: 14-P2 Compute and record amortization of bond

discount.Problem 14-1A Computing bond price and recording issuance L.O. P1, P2,

P3Learning Objective: 14-P1 Prepare entries to record bond issuance and interest

expense.Learning Objective: 14-P3 Compute and record amortization of bond

premium..award:

1.10 out of

5.00 points Problem 14-2A Straight-line amortization of bond discount L.O. P1, P2Heathrow

issues $3,000,000 of 6%, 15-year bonds dated January 1, 2011, that pay

interest semiannually on June 30 and December 31. The bonds are issued at a

price of $2,592,334. Required:1.Prepare

the January 1, 2011, journal entry to record the bonds issuance. (Omit the “$” sign in your response.) 2(a)For

each semiannual period, compute the cash payment. (Do not round your intermediate calculations. Omit the

“$” sign in your response.) 2(b)For

each semiannual period, compute the the straight-line discount amortization. (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.) Amount

of discount amortization$ n/r .gif” alt=”incorrect”> 2(c)For

each semiannual period, compute the bond interest expense. (Round your intermediate calculations and final answer to

the nearest dollar amount. Omit the “$” sign in your response.) Bond

interest expense$ n/r .gif” alt=”incorrect”> 3.Determine

the total bond interest expense to be recognized over the bonds’ life. (Do not round semi-annual interest rate. Round intermediate

calculations to the nearest dollar. Omit the “$” sign in your

response.) Total

bond interest expense$ n/r .gif” alt=”incorrect”> 4. Prepare

the first two years of an amortization table using the straight-line method. (Round your intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign

in your response.) 5. Prepare

the journal entries to record the first two interest payments. (Round your intermediate calculations and

final answers to the nearest dollar amount. Omit the “$” sign

in your response.) 3.award:

0 out of

5.00 points Problem 14-3A Straight-line amortization of bond premium L.O. P1, P3Heathrow

issues $1,600,000 of 9%, 15-year bonds dated January 1, 2011, that pay

interest semiannually on June 30 and December 31. The bonds are issued at a

price of $1,958,394. Required:1.Prepare

the January 1, 2011, journal entry to record the bonds issuance. (Omit the “$” sign in your response.) DateGeneral JournalDebitCreditJan. 1 n/r .gif” alt=”incorrect”>n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> .gif” alt=”incorrect”> 2(a)For

each semiannual period, compute the cash payment. (Do not round your intermediate calculations. Omit the

“$” sign in your response.) Cash

payment$ n/r .gif” alt=”incorrect”> 2(b)For

each semiannual period, compute the the straight-line premium amortization. (Round your final answer to the nearest dollar amount. Omit the “$” sign in your response.) Amount

of premium amortized$ n/r .gif” alt=”incorrect”> 2(c)For

each semiannual period, compute the the bond interest expense. (Round your intermediate calculations and final answer to

the nearest dollar amount. Omit the “$” sign in your response.) Bond

interest expense$ n/r .gif” alt=”incorrect”> 3.Determine

the total bond interest expense to be recognized over the bonds’ life. (Do not round your intermediate calculations. Omit the

“$” sign in your response.) Total

bond interest expense$ n/r .gif” alt=”incorrect”> 4. Prepare

the first two years of an amortization table using the straight-line method. (Round your intermediate calculations and final answers to

the nearest dollar amount. Omit the “$” sign in your response.) 5. Prepare

the journal entries to record the first two interest payments. (Round your intermediate calculations and final answers to

the nearest dollar amount. Omit the “$” sign in your response.)

eBook Links (2)WorksheetDifficulty: MediumLearning Objective: 14-P3 Compute and record amortization of bond

premium.Problem 14-3A Straight-line amortization of bond premium L.O. P1, P3Learning Objective: 14-P1 Prepare entries to record bond issuance and

interest expense.

4.award:

0 out of

5.00 points Problem 14-5AB Effective interest amortization of bond premium;

computing bond price L.O. P1, P3Saturn

issues 8.5%, five-year bonds dated January 1, 2011, with a $490,000 par

value. The bonds pay interest on June 30 and December 31 and are issued at a

price of $542,250. The annual market rate is 6% on the issue date. 1.Compute

the total bond interest expense over the bonds life. (Do not round

intermediate calculations. Omit the “$” sign in your response.) Total

bond interest expense$ n/r .gif” alt=”incorrect”> 2.Prepare

an effective interest amortization table for the bonds life. (Make

sure that the unamortized premium equals to ‘0’ and the Carrying value equals

to face value of the bond in the last period. Leave no cells blank – be

certain to enter “0” wherever required. Bond interest expense in

the last period should be calculated as Cash interest paid (?) Premium

amortized. Round your answers to the nearest dollar amount. Omit the

“$” sign in your response.) Semiannual Interest

Period-End(A)

Cash Interest

Paid(B)

Bond Interest

Expense(C)

Premium

Amortization(D)

Unamortized

Premium(E)

Carrying

Value1/01/2011 $ n/r .gif” alt=”incorrect”> $ n/r .gif” alt=”incorrect”> 6/30/2011$ n/r .gif” alt=”incorrect”> $ n/r .gif” alt=”incorrect”> $ n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 12/31/2011n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 6/30/2012n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 12/31/2012n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 6/30/2013n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 12/31/2013n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 6/30/2014n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 12/31/2014n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 6/30/2015n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 12/31/2015n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> Total$ n/r .gif” alt=”incorrect”> $ n/r .gif” alt=”incorrect”> $ n/r .gif” alt=”incorrect”> 3.Prepare

the journal entries to record the first two interest payments. (Round

your answers to nearest dollar amount. Omit the “$” sign in your

response.) DateGeneral JournalDebitCreditJune 30, 2011 n/r .gif” alt=”incorrect”> .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> Dec. 31, 2011 n/r .gif” alt=”incorrect”> .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> n/r .gif” alt=”incorrect”> 4.Use the

market rate at issuance to compute the present value of the remaining cash

flows for these bonds as of December 31, 2013. (Use .mhhe.com/connect/0078110874/Images/tableb.1.jpg”>Table B.1, .mhhe.com/connect/0078110874/Images/tableb.3.jpg”>Table B.3) (Round

“PV Factors” to 4 decimal places, intermediate and

final answers to the nearest dollar amount. Omit the “$” sign

in your response.) Present

value$ n/r .gif” alt=”incorrect”>

rev: 08_13_2011

eBook Links (2)WorksheetDifficulty: HardLearning Objective: 14-P3 Compute and record amortization of bond

premium.Problem 14-5AB Effective interest amortization of bond premium;

computing bond price L.O. P1, P3Learning Objective: 14-P1 Prepare entries to record bond issuance and

interest expense.

Problem 14-6A Straight-line amortization of bond discount L.O. P1, P2[The following information applies to

the questions displayed below.]Patton

issues $590,000 of 7.5%, four-year bonds dated January 1, 2011, that pay

interest semiannually on June 30 and December 31. They are issued at $542,310

and their market rate is 10% at the issue date.Section BreakDifficulty: HardLearning Objective: 14-P2 Compute and record amortization of bond

discount.Problem 14-6A Straight-line amortization of bond discount L.O. P1, P2Learning Objective: 14-P1 Prepare entries to record bond issuance and

interest expense.