Please let me know how I can find out whether something is premium or a discount. It would also be really helpful if you included the formula for both if there is one?Please answer the question in the picture I have attached another one with the completed chart in case it is needed. Required information[The following information applies to the questions displayed below.]On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bondsmature at the end of four years. Olive uses the effective-interest amortization method. The partially completedamortization schedule below pertains to the bonds:DateJanuary 1, Year 1End of Year 1End of Year 2End of Year 3End of Year 4CashPremium$ 3,600???Interest$ 3,417??3,376Amortization$ 183?210?Balance$ 48,81348,63048,434?48,0004. Were the bonds issued at a premium or a discount? If so, what was the amount of the premium or discount? DateJanuary 1, Year 1End of Year 1End of Year 2End of Year 3End of Year 4$$Cash3,6003,600 $3,600$3,600$InterestAmortizationSA3,4173,404 $3,390 $3,376$183196$210$224 $Balance48,81348,63048,43448,22448,000

Bonds are issued at a premium when the issue price is higher than the face value of the bond Bonds…

Answered: ar 1 $ $ $ A 3,600 $ 3,600 $ 3,600 $ $…

Business

Accounting

ar 1 $ $ $ A 3,600 $ 3,600 $ 3,600 $ $ 3 600 3,417 $ 3,404 $ 3,390 $ 3 376 $ $ $ 183 196 $ 210 $ 224 $

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 13M

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On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?
On January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is payable annually on December 31. The bonds were sold to yield an effective interest rate of 6 percent. Twain uses the effective interest rate method. The bonds sold for $574,368. Requireda. Prepare the journal entry for the issuance of the bonds.b. Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. (Assume effective interest amortization.)c. Prepare the journal entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. (Assume straight-line amortization.)d. Calculate the amount of interest expense for Year 2. (Assume effective interest amortization.) e. Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.)
[The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date Cash Interest Amortization Balance 1/1/20x1 $ 52,833 12/31/20x1 $ 5,200 $ 5,019 $ 181 52,652 12/31/20x2 ? ? ? 12/31/20x3 ? ? 217 52,454 ? 12/31/20x4 ? 4,963 ? 52,000 Required: 1. Complete the amortization schedule. Note: Enter all your values in positive. Round your final answers to nearest whole dollar amount. Date 1/1/20x1 12/31/20x1 Cash Interest Amortization Balance $ 52,833 $ 5,200 $ 5,019 $ 181 $ 52,652 12/31/20x2 $ 52,454 12/31/20x3 $ 217 12/31/20x4 4,963 $ 52,000
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Jackson, Inc.’s fiscal year ends December 31. Selected transactions for the period 20-1 through 20-8 involving bonds payable issued by Jackson are as follows: 20-1 Transactions: Oct. 31 Issued $600,000 of 10-year, 7%, callable bonds dated October 31, 20-1, for $612,000. Interest is payable semiannually on October 31 and April 30. The bond indenture provides that Jackson is to pay to the trustee bank $20,000 by May 15 of each year (except the tenth year) as a sinking fund for the retirement of the bonds on call or at maturity. Dec. 31 Made the adjusting entry for interest payable and amortized two months’ premium on the bonds (straight-line method). 20-2 Transactions: Jan. 2 Reversed the adjusting entry for interest payable and bond premium amortization. Apr. 30 Paid the semiannual interest on the bonds and amortized six months’ premium. May 15 Paid the sinking fund trustee $20,000. Oct. 31 Paid the semiannual interest on the bonds and amortized six months’…
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