Problem 1: Pronghorn, Inc. had outstanding $5,990,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,140,000 of 11%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $179,700) at 103 on August 1.
What are the journal entries necessary to record issue of the new bonds and the refunding of the bonds?
Problem 2: Oriole Co. is building a new hockey arena at a cost of $2,620,000. It received a down-payment of $450,000 from local businesses to support the project, and now needs to borrow $2,170,000 to complete the project. It therefore decides to issue $2,170,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 9%.
What is the journal entry to record the issuance of the bonds on January 1, 2016.
What would be the bond amortization schedule up to and including January 1, 2020, using the effective interest method?
Assume that on July 1, 2019, Oriole Co. redeems half of the bonds at a cost of $1,146,600 plus accrued interest. Prepare the journal entry to record this redemption.
Most of the Bond Amortization Schedule Assignment Help tutors are having a Master's and Ph.D. credentials from the reputed universities and are capable to cover almost all the topics related to the Bond Amortization Schedule of any complexity level with ease.
Tags: Bond Amortization Schedule Assignment Help, Bond Amortization Schedule Homework Help, Bond Amortization Schedule Coursework, Bond Amortization Schedule Solved Assignments, Journal Entries to Record Issue Assignment Help, Journal Entries to Record Issue Homework Help, Issuance of Bonds Assignment Help, Issuance of Bonds Homework Help