Reference no: EM131288406
On January 1, 2015, Jack Co. issued three $100,000, 6%, bond payables that mature in 5 years. Straight line depreciation is used.
Required: Consider the facts above and answer each of the three independent situations described below. Answer the following questions.
Bond # 1 is issued at 100 with annual payments at December 31
1. Cash received upon sale: $______________________
2. The bonds were sold Discount, Premium Face upon sale: $______________________
3. Cash interest paid at December 31 2015 $_____________________
4. Bond interest expense in the Income Statement at December 31 $______________________
5. Carrying Value of the Bonds on the Balance Sheet at December 31 $______________________
Bond # 2 is issued at 103 with annual payments at December 31
1. Cash received upon sale: $______________________
2. The bonds were sold Discount, Premium Face upon sale: $______________________
3. Cash interest paid at December 31 2015 $______________________
4. Bond interest expense in the Income Statement at December 31 $______________________
5. Carrying Value of the Bonds on the Balance Sheet at December 31 $______________________
Bond # 3 is issued at 98 with annual payment at December 31.
1. Cash received upon sale: $______________________
2. The bonds were sold Discount, Premium Face upon sale: $______________________
3. Cash interest paid at December 31 2015 $_____________________
4. Bond interest expense in the Income Statement at December 31 $______________________
5. Carrying Value of the Bonds on the Balance Sheet at December 31 $____________________
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