Question 1 - On January 1, 2018, Corvallis Camivala borrows $24,000 to purchase a delivery truck by agreeing to a 5%, five-year loan with the bank Payments of $452.91 are due at the end at each month, with the first installment due on January 31. 2018.
Record the issuance of the note payable and the first monthly payment.
Question 2 - Calculate the issue price of bonds
Ultimate Butter Popcorn issues 7%, 10-year bonds with a face amount of $41,000. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually.
At what price will the bonds issue?
Question 3 - Record bond issue and related semiannual interest
Pretzelmania, lnc., issues 7%, 10-year herds with a face amount of $57,000 for $57,000 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.
Record the bond issue and first interest payment on June 30, 2018.
Question 4 - Calculate interest expense
On January 1, 2018, Lizzy's Lemonade issues 5%, 20-year bonds with a face amount of $97,000 for $85,789, priced to yield 6%. Interest is paid semiannually.
What amount of interest expense will be recorded on June 30, 2018, the first interest payment date?
Questions 5 - Calculate interest expense
On January 1, 2018, Lyle's Limeade issues 5%, 15-year bonds with a Face amount of $70,000 for $63,140, priced to yield 6%. Interest is paid semiannually.
What amount of interest expense will be recorded in the December 31, 2018, annual income statement?