Exercise 10-11 (Static) Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2020

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Exercise 10 11 Static Straight Line Bond Computations Amortization And Bond Retirement Lo P2 P4 On January 1 2020 1 (33.29 KiB) Viewed 12 times

Exercise 10 11 Static Straight Line Bond Computations Amortization And Bond Retirement Lo P2 P4 On January 1 2020 2 (31.86 KiB) Viewed 12 times

Exercise 10 11 Static Straight Line Bond Computations Amortization And Bond Retirement Lo P2 P4 On January 1 2020 3 (40.41 KiB) Viewed 12 times

Exercise 10-11 (Static) Straight-Line: Bond computations, amortization, and bond retirement LO P2, P4 On January 1, 2020, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January 1, 2026, Shay retires these bonds by buying them on the open market for $731,500. All interest is accounted for and paid through December 31, 2025, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2020, through December 31, 2025? 3. What is the carrying (book) value of the bonds as of the close of business on December 31, 2025? 4. Prepare the journal entry to record the bond retirement. complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 Reg 4 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2020, through December 31, 2025? 1 Amount of discount 2 Amortization of discount Check my work Ben 1
view transaction fist Journal entry worksheet < 1 Prepare the journal entry to record the bond retirement. Note: Enter debits before credits. Date January 01 Record entry General Journal Clear entry < Prev Debit 7 of 7 Credit View general journal Next A oner
On January 1, 2020, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250 Six years later, on January 1, 2026, Shay retires these bonds by buying them on the open market for $731,500. All interest is accounted for and paid through December 31, 2025, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance? 2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2020, through December 31, 2025? 3. What is the carrying (book) value of the bonds as of the close of business on December 31, 2025? 4. Prepare the journal entry to record the bond retirement. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Par value Remaining discount Carrying value Req 4 What is the carrying (book) value of the bonds as of the close of business on December 31, 20257 Bonds <Req 1 and 2 < Prev Reg 4 > 7 of 7 Nax