Student Name:
Class:
Date Account Debit Credit
600,000
600,000 <–Correct!
24,000
24,000 <–Correct!
24,000
24,000 <–Correct!
(Pay semiannual interest)
December 31, 2018
Interest Expense
Cash
Problem 09-04
McGraw-Hill/Irwin
Instructor
Bonds Payable
TWISTER ENTERPRISES
January 1, 2018
Cash
Requirement 1:
June 30, 2018
Interest Expense
(Issued bonds at face amount)
Cash
Requirement 2:
(Pay semiannual interest)
Premium on Bonds Payable
June 30, 2018
Interest Expense
Discount on Bonds Payable
January 1, 2018
Cash
(Pay semiannual interest)
Requirement 3:
Bonds Payable
December 31, 2018
Interest Expense
January 1, 2018
Cash
Bonds Payable
Discount on Bonds Payable
(Pay semiannual interest)
(Pay semiannual interest)
(Issued bonds at a premium)
December 31, 2018
Interest Expense
Premium on Bonds Payable
Cash
Premium on Bonds Payable
(Pay semiannual interest)
(Bonds issued at a discount)
Discount on Bonds Payable
600,000$
20
TWISTER ENTERPRISES
Given Data P09-04:
Issued bonds on January 1, 2018
Maturity in years
Interest rate on bonds
Interest payable June 30 and December 31
Student Name:
Class:
Increase in
Cash Interest Carrying Carrying
Date Paid Expense Value Value
1/1/18 841,464$ «-Correct!
Date Account Debit Credit
Requirement 3:
Interest Expense
Bonds Payable
Discount on Bonds Payable
Interest Expense
December 31, 2018
Discount on Bonds Payable
June 30, 2018
Discount on Bonds Payable
841,464
Instructor
UNIVERSE OF FUN
Requirement 1: Amortization schedule
Cash
Problem 09-06
McGraw-Hill/Irwin
Requirement 2:
January 1, 2018
900,000$
841,464$
UNIVERSE OF FUN
Given Data P09-06:
Issued bonds on January 1, 2018, face value
Bonds issued for
Interest rate on bonds
Interest rate for bonds of similar risk and maturity
Interest payable June 30 and December 31
Maturity in years
Student Name:
Class:
Problem 09-07
McGraw-Hill/Irwin
Instructor
÷
Interest
÷
Average Total
Assets
BAHAMA BAY and CARIBBEAN KEY
Net Income
÷
=
Return on
Equity Ratio
Average
Stockholders’
Equity
Debt to
Equity Ratio
Net Income
Return on
Assets Ratio
=
÷
Stockholders’
Equity
=
Requirement 2: (in $millions)
Total
Liabilities
Requirement 1: (in $millions)
Net Income+
Interest+
Taxes
Times
Interest
Earned Ratio
Requirement 3: (in $millions)
=
2018 2017 2018 2017
Bahama Bay
Caribbean Key
Given Data P09-07:
(In $millions)
BAHAMA BAY and CARIBBEAN KEY
Interest expense
Tax expense
Net income
Total assets
Total liabilities
Total stockholders’ equity
Sales revenue