accounting - WenTong Weng 7.(2 points) On January 1, 2010,...

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WenTong Weng 7.(2 points) On January 1, 2010, B Company issued $1,000,000,000 of 4% bonds. The bonds are due January 1, 2024 and the bonds pay interest every July 1 and January 1. B issued the bonds at face value. Prepare the entries for: a. The January 1, 2010 issuance of the bonds b. The July 1, 2010 interest payment c. The December 31, 2010 accrual d. The January 1, 2011 interest payment A Cash 1,000,000,000 Bonds Payable 1,000,000,000 B Bond Interest Expense 20,000,000 Cash 20,000,000 C Bond Interest Expense 20,000,000 Bond Interest Payable 20,000,000 D Bond Interest Payable 20,000,000 Cash 20,000,000 8.(6 points) On January 1, 2010, Box Company issued $50,000,000 of its 5%, 20-year bonds dated January 1, 2010. The bonds pay interest every June 30 and December 31. At the time the bonds were issued, similar bonds were paying 6%. Box uses the effective-interest method to amortize any bond discount or premium. Prepare the entries for: e. The January 1, 2010 issuance of the bonds f. The June 30, 2010 interest payment and recognition of interest expense g. The December 31, 2010 interest payment and recognition of interest expense h. The June 30, 2011 interest payment and recognition of interest expense A January 1,2010 issuance Cash 44,221,307 Discount on bond payable 5,778,693 Bond payable 50,000,000 PV of principle: $15,327,842 n=40 I= 3% FV= 50,000,000 PV of interest: $28,893,465 n=40 PMT= 1,250,000 I=3%
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accounting - WenTong Weng 7.(2 points) On January 1, 2010,...

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