Please help me 2018) for $1,265,000.P14-4. Bonds Sold between Interest Dates at a Discount, Bond Issue Proceeds, Retirement. Summa Manufactur-Foing Company issued $900,000 par value, 5%, five-year bonds dated January 1, 2016. The bonds pay interestsemiannually each June 30 and December 31. Summa issued the bonds on April 30, 2016, when the marketrate of interest was 6%. Bond issue costs were $59,000.466fent of the bonds at the end of the third year (DecemberMaucha. Determine the bond issue price including accrued interest on April 30, 2016.b. Prepare an amortization table for the bond issue using the effective interest rate method.c.nolaPrepare the journal entries required on the date of issue and on the first two interest dates in 2016: June 30and December 31.d. The bonds are retired on June 30, 2018, for $891,000. Prepare the journal entry at retirement.mu

Bond issue price is the sum of the, present value of the bond repayment that is due at its maturity…

Bonds Sold between Interest Dates at a Discount, Bond Issue Proceeds, Retirement. Summa Manufactur- ing Company issued $900,000 par value, 5%, five-year bonds dated January 1, 2016. The bonds pay interest semiannually each June 30 and December 31. Summa issued the bonds on April 30, 2016, when the market rate of interest was 6%. Bond issue costs were $59,000. a. Determine the bond issue price including accrued interest on April 30, 2016. b. Prepare an amortization table for the bond issue using the effective interest rate method. c. Prepare the journal entries required on the date of issue and on the first two interest dates in 2016: June 30 and December 31. d. The bonds are retired on June 30, 2018, for $891,000. Prepare the journal entry at retirement.

Bonds Sold between Interest Dates at a Discount, Bond Issue Proceeds, Retirement. Summa Manufactur- ing Company issued $900,000 par value, 5%, five-year bonds dated January 1, 2016. The bonds pay interest semiannually each June 30 and December 31. Summa issued the bonds on April 30, 2016, when the market rate of interest was 6%. Bond issue costs were $59,000. a. Determine the bond issue price including accrued interest on April 30, 2016. b. Prepare an amortization table for the bond issue using the effective interest rate method. c. Prepare the journal entries required on the date of issue and on the first two interest dates in 2016: June 30 and December 31. d. The bonds are retired on June 30, 2018, for $891,000. Prepare the journal entry at retirement.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter10: Long-term Liabilities

Section: Chapter Questions

Problem 10.15MCE

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