30 and December 31. What is the bond carrying amount on December 31 of the current year?
19. Album Co. issued ten-year $ 200,000 debenture bonds on January 2. The bonds pay interest semiannually. Album uses the effective interest method to amortize bond premiums and discounts. The carrying value of the bonds on January 2 was $ 185,953. A journal entry was recorded for the first interest payment on June 30, debiting interest expense for $ 13,016 and crediting cash for $ 12,000. What is the annual stated interest rate for the debenture bonds?
20. An investor purchased a bond classified as a long-term investment between interest dates at a discount. At the purchase date, the carrying amount of the bond is more than the
21. On January 1, year 1, Korn Co. sold to Kay Corp. $ 400,000 of its 10 % bonds for $ 354,118 to yield 12 %. Interest is payable semiannually on January 1 and July 1. What amount should Korn report as interest expense for the 6 months ended June 30, year 1?
22. Bryce Corp. signed an agreement with Casey, which requires that if Casey does not meet certain contractual obligations, Casey must forfeit land worth $ 100,000 to Bryce. Bryce’ s accountants believe that Casey will not meet its contractual obligations, and it is probable Bryce will receive the land by the end of year 3. Bryce uses IFRS for reporting purposes. How should Bryce report the land in its December 31, year 2 financial statements?
23. On March 1, year 1, Cain Corp. issued at 103 plus accrued interest 200 of its 9 %, $ 1,000 bonds. The bonds are dated January 1, year 1, and mature on January 1, year 11. Interest is payable semiannually on January 1 and July 1. Cain paid bond issue costs of $ 10,000. Cain should realize net cash receipts from the bond issuance of
24. On April 1, year 1, Girard Corporation issued at 98 plus accrued interest, 200 of its 10 %, $ 1,000 bonds. The bonds are dated January 1, year 1, and mature on January 1, year 11. Interest is payable