On january 1, a company issues bonds dated january 1 with a par value of $600,000. the bonds mature in 3 years. the contract rate

E) Debit Interest Expense $27,000; credit Discount on Bonds Payable $6,000; credit Cash $21,000.Explanation:face value 600,000cash proceeds 564,000 Discount 36,000total payment: 3 year 2 payment a year = 636,000 / 6 = 6,000 amortization per yearcash proceed per payment 600,000 x 0.07/2 = 21,0006,000 amortization interest expense 27,000... Show More

1Explanation: Anything to the power of 0 equals 1, and that includes 6. (6^0=1)Now we are left with 1 divided by 1. (1/1)Anything divided by itself is 1, so 1 divided by 1 is 1.Therefore, your answer is 1. (Sorry if I sound confusing)... Show More

Debit Interest Expense $17,304.80; credit discount on bonds payable $1,104.8; credit cash $16,200Interest Expense A/cDr $17,304.80Discount on bonds payable A/cCr $1104.8 To Cash A/cCr $16,200Explanation:Given the following :Bond value = $346,096Market rate = 10% = 0.1Contract rate = 9% = 0.09Par value = $360,000Note : Semiannual payment = rate / 2Calculating the cash value and interest expense:Cash value :Par value × contract rate $360,000 × (0.09/2)$360,000 × 0.045= $16,200Interest expense :Bond value × market rate $346,096 × (0.1/2)$346,096 × 0.05= $17,304.8... Show More

January 1, 202x, bonds issued at a discountDr Cash 441,361 Dr Discount on bonds payable 18,639          Cr Bonds payable 460,000amortization of bond discount = ($441,361 x 4%) - ($460,000 x 3.5%) = $17,654.44 - $16,100 = $1,554.44June 20, 202x, first coupon paymentDr Interest expense 17,654.44        Cr Cash 16,100        Cr Discount on bonds payable 1,554.44... Show More

May 1 2020Dr Cash 954,000Cr Bonds Payable 900,000Cr Premium on Bonds Payable 54,000Dr Cash 36,000Cr Interest Expense 36,000December 31 Dr Interest Expense 104,275.86 Dr Premium on Bonds Payable 3,724.14Cr Interest Payable 108,000Jan 1, 2021Dr Interest Payable 108,000Cr Cash 108,000April 1Dr Bonds payable $360,000Dr Premium on bonds payable $19,738Dr Interest Expense $10,800Cr Cash $367,200Cr Gain on redemption of bonds $23,338Dec. 31Dr Interest Expense $64,800Cr Interest Payable $64,800Dec. 31Dr Premium on bonds payable $3,911Cr Interest Expense $3,911Explanation:Preparation of the journal entriesMay 1 2020Dr Cash 954,000($900,000 * 106%)Cr Bonds Payable 900,000Cr Premium on Bonds Payable 54,000(954,000-54,000)(Being To record issuance of bonds)Dr Cash 36,000 ($900,000 * 12% * 4/12)Cr Interest Expense 36,000(Being To record accrued interest at the issuance of bonds)December 31 Dr Interest Expense 104,275.86(108,000-3,724.14)Dr Premium on Bonds Payable 3,724.14($54,000 * 8/116months)Cr Interest Payable 108,000($900,000 * 12%)Note that [(10yrs*12months) – 4months] will give us 116 months which was used to amortize premium(Being To record accrued interest and amortization of premium at year end)Jan 1, 2021Dr Interest Payable 108,000Cr Cash 108,000($900,000 * 12%)(Being To record payment of interest)April 1Dr Bonds payable $360,000Dr Premium on bonds payable $19,738[54,000*($360,000/$900,000)*(106/116)]Dr Interest Expense $10,800($360,000*12%*3/12)Cr Cash $367,200($360,000*102%)Cr Gain on redemption of bonds $23,338[($360,000+$19,738+$10,800)-$367,200](Being to record call of Bond and Redemption)Dec. 31Dr Interest Expense $64,800Cr Interest Payable $64,800[($900,000-$360,000)*12%](Being to record the interest)Dec. 31Dr Premium on bonds payable $3,911Cr Interest Expense $3,911[($54,000*12/116*0.6)+(54,000*3/116*0.4)]/=$3,352+$559=$3,911 (Being to Amortized premium)... Show More

An old fashion calculator to calculate the the number of the money and which the percentage what is was interest... Show More

Yep the answer is what you got... Show More