Long-term Liabilities And Receiva Issuing bonds at a Discount Straight-Line method After this second entry, the long-term liabilities section of jet's december 3 1. 2004 balance sheet would appear as follows Bonds payable $100.00000 Less: Discount on bonds payable 561889) $7,02361-$702.36-$702.36
After this second entry, the long-term liabilities section of Jet’s December 31, 2004 balance sheet would appear as follows: Bonds payable $100,000.00 Less: Discount on Bonds Payable (5,618.89 ) $ 94,381.11 $7,023.61 – $702.36 – $702.36 Issuing Bonds at a Discount Straight-Line Method Intermediate Accounting 11 Long-term Liabilities And Receivables
Long-term Liabilities And Receiva Issuing Bonds at a Premium Straight-Line method Jet Company sold bonds on January 1, 2004 for S107.721.71. Interest is paid semiannual Cash 107.721.71 Bonds payable 100.000.00 Premium on bonds payable 7.72171 Continued
Issuing Bonds at a Premium Jet Company sold bonds on January 1, 2004 for $107,721.71. Interest is paid semiannually. Cash 107,721.71 Bonds Payable 100,000.00 Premium on Bonds Payable 7,721.71 Continued Straight-Line Method Intermediate Accounting 11 Long-term Liabilities And Receivables
Long-term Liabilities And Receiva Issuing Bonds at a Premium Straight-Line method The first interest payment $7721.71÷10 Interest Expense Premium on bonds payable 772.17 Cash($100,0000×0.12x1/2) 6.000.00 Continued
Issuing Bonds at a Premium The first interest payment is made on June 30. Interest Expense 5,227.83 Premium on Bonds Payable 772.17 Cash ($100,0000 x 0.12 x 1/2) 6,000.00 Continued Straight-Line Method $7,721.71 ÷ 10 Intermediate Accounting 11 Long-term Liabilities And Receivables
Long-term Liabilities And Receiva Issuing Bonds at a Premium Straight-Line method After this second entry the long-term liabilities section of jet's December 31. 2004 balance sheet would appear as follows Bonds payable $100,00000 Add: Premium on bonds payable 6.177.37 $10 7 $7721.71-$772.17-$77217
Issuing Bonds at a Premium After this second entry, the long-term liabilities section of Jet’s December 31, 2004 balance sheet would appear as follows: Bonds payable $100,000.00 Add: Premium on Bonds Payable 6,177.37 $106,177.37 $7,721.71 – $772.17 – $772.17 Straight-Line Method Intermediate Accounting 11 Long-term Liabilities And Receivables
Long-term Liabilities And Receiva Determining the selling Price Using the straight-line method, Interest Expense is the same every year-which is not realistic when a premium or discount is involved. Instead the effective-interest method allows for a stable interest rate per year
Determining the Selling Price Using the straight-line method, Interest Expense is the same every year—which is not realistic when a premium or discount is involved. Instead, the effective-interest method allows for a stable interest rate per year. Intermediate Accounting 11 Long-term Liabilities And Receivables