What is the bonds' ANNUAL market rate of interest?How much total CASH will the company pay for interest in 2024?How much total INTEREST EXPENSE will the company report on itsIncome Statement in 2024?%24 Devin Company computes the following bond interest amortization table for bonds issued onJanuary 1, 2021. Use the information on this table to answer the questions below.InterestCashPaymentPaymentInterestDecrease inВookDateAmountDiscountValueExpense$441,068$444,310$447,683$451,190$454,838$458,631$462,577$466,680$470,947$475,385Discount$360,000$360,000$360,000$360,000$360,000$360,000$360,000$360,000$360,000$360,000$81,068$84,310$87,683$91,190$94,838$98,631$102,577$106,680$110,947$115,385$892,240$807,929$720,247$629,056$534,219$435,587$333,011$226,331$115,385$0$11,107,760$11,192,071$11,279,753$11,370,944$11,465,781$11,564,413$11,666,989$11,773,669$11,884,615$12,000,000June 30, 2021Dec 31, 2021June 30, 2022Dec 31, 2022June 30, 2023Dec 31, 2023June 30, 2024Dec 31, 2024June 30, 2025Dec 31, 2025

Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

What is the bonds' ANNUAL market rate of interest? % How much total CASH will the company pay for interest in 2024? $ How much total INTEREST EXPENSE will the company report on its Income Statement in 2024? %24

What is the bonds' ANNUAL market rate of interest? % How much total CASH will the company pay for interest in 2024? $ How much total INTEREST EXPENSE will the company report on its Income Statement in 2024? %24

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 9RE

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Question

What is the bonds' ANNUAL market rate of interest?
How much total CASH will the company pay for interest in 2024?
How much total INTEREST EXPENSE will the company report on its
Income Statement in 2024?
%24

Devin Company computes the following bond interest amortization table for bonds issued on
January 1, 2021. Use the information on this table to answer the questions below.
Interest
Cash
Payment
Payment
Interest
Decrease in
Вook
Date
Amount
Discount
Value
Expense
$441,068
$444,310
$447,683
$451,190
$454,838
$458,631
$462,577
$466,680
$470,947
$475,385
Discount
$360,000
$360,000
$360,000
$360,000
$360,000
$360,000
$360,000
$360,000
$360,000
$360,000
$81,068
$84,310
$87,683
$91,190
$94,838
$98,631
$102,577
$106,680
$110,947
$115,385
$892,240
$807,929
$720,247
$629,056
$534,219
$435,587
$333,011
$226,331
$115,385
$0
$11,107,760
$11,192,071
$11,279,753
$11,370,944
$11,465,781
$11,564,413
$11,666,989
$11,773,669
$11,884,615
$12,000,000
June 30, 2021
Dec 31, 2021
June 30, 2022
Dec 31, 2022
June 30, 2023
Dec 31, 2023
June 30, 2024
Dec 31, 2024
June 30, 2025
Dec 31, 2025

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Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below. Interest Cash Payment Payment Interest Decrease in Вook Date Amount Expense Discount Discount Value June 30, 2021 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $441,068 $444,310 $447,683 $81,068 $84,310 $87,683 $91,190 $94,838 $98,631 $892,240 $807,929 $720,247 $629,056 $534,219 $435,587 $11,107,760 $11,192,071 $11,279,753 $11,370,944 $11,465,781 $11,564,413 $11,666,989 $11,773,669 $11,884,615 $12,000,000 Dec 31, 2021 June 30, 2022 $451,190 $454,838 $458,631 Dec 31, 2022 June 30, 2023 Dec 31, 2023 $462,577 $466,680 $102,577 $106,680 $333,011 $226,331 June 30, 2024 Dec 31, 2024 $360,000 $360,000 $470,947 $475,385 $110,947 $115,385 June 30, 2025 $115,385 Dec 31, 2025 $0 1. What journal entry will Devin make on June 30, 2022 to record the third interest payment? 2. When the bonds mature on…
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