Liberty ACCT 211 Connect Homework Chapter 10 Problems Answers Complete Solutions
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Question 1
Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years.
Consider each of the following three separate situations.
(a) Complete the below table to determine the bonds’ issue price on January 1, 2017.
(b) Prepare the journal entry to record their issuance.
(a) Complete the below table to determine the bonds’ issue price on January 1, 2017.
(b) Prepare the journal entry to record their issuance.
(a) Complete the below table to determine the bonds’ issue price on January 1, 2017.
(b) Prepare the journal entry to record their issuance.
Question 2
Hillside issues $2,700,000 of 7%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,333,101.
1. Prepare the January 1, 2017, journal entry to record the bonds’ issuance.
2(a) For each semiannual period, complete the table below to calculate the cash payment.
2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization.
3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds’ life.
5. Prepare the journal entries to record the first two interest payments.
Question 3
Legacy issues $730,000 of 7.0%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $659,199 and their market rate is 10% at the issue date.
Question 4
2. Determine the total bond interest expense to be recognized over the bonds’ life.
Question 5
3. Prepare a straight-line amortization table for the bonds’ first two years.
Question 7
On November 1, 2017, Norwood borrows $540,000 cash from a bank by signing a five-year installment note bearing 7% interest. The note requires equal payments of $131,701 each year on October 31
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Question 8
At the end of the current year, the following information is available for both Pulaski Company and Scott Company.
Question 9
Ike issues $160,000 of 13%, three-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $163,940. Their market rate is 12% at the issue date.
Question 10
2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds’ life.
Question 11
3. Prepare an effective interest amortization table for the bonds’ first two years.
Question 13
5. Prepare the journal entry to record the bonds’ retirement on January 1, 2019, at 98.
Question 14
Rogers Company signs a five-year capital lease with Packer Company for office equipment. The annual year-end lease payment is $24,000, and the interest rate is 7%.
Question 15
2. Prepare the journal entry to record Rogers’s capital lease at its inception.
Question 16
3. Complete a lease payment schedule for the five years of the lease with the following headings. Assume that the beginning balance of the lease liability is the present value of lease payments.
Question 17
4. Use straight-line depreciation and prepare the journal entry to depreciate the leased asset at the end of year 1. Assume zero salvage value and a five-year life for the office equipment.
