*****Please show all work********
Captain Johnny Whizbang Hamburgers issued 4%, 10-year bonds payable at 85 on December 31, 2010. At December 31, 2012, Captain Johnny reported the bonds as follows:
Long - Term Debt:
Bonds Payable...$ 300,000
Less Discount... (36,000) $264,000
Captain Johnny uses the straight - line amortization method and pays semiannaual interest each June 30 and December 3.
1. Answer the following questions about Johnny Whizbang's bonds payable:
a. What is the maturity value of the bonds?
b. What is the carrying amount of the bonds at December 31, 2012?
c. What is the annual cash interest payment on the bonds?
d. How much interest expense should the company record each year?
2. Record the June 30, 2013, semiannual interest payment and amortization of discount.
3. What will be the carrying amount of the bonds at December 31, 2013?© BrainMass Inc. brainmass.com June 4, 2020, 12:42 am ad1c9bdddf
The expert examines bonds long term debt.