Question :
28) On January 1, 2011, Sea the World Cruises, Inc. : 1253343
28) On January 1, 2011, Sea the World Cruises, Inc. issued $100,000 worth of 8%, 10-year bonds at 88. The market rate of interest at the time of issue was 10%. Interest will be paid semiannually on June 30 and December 31. Sea the World Cruises uses the effective interest method for amortizing any bond discounts or premiums.
Part A: For each item listed below, fill in the correct dollar amount in the column that represents the financial statement where the item will appear:
Income Statement
Statement of Cash Flows
Balance Sheet
1
Proceeds from issuing bonds
2
Interest expense for the 6 months ended June 30, 2011
3
Interest paid for the 6 months ended June 30, 2011
4
Interest expense for the 6 months ended Dec. 31, 2011
5
Interest paid for the 6 months ended Dec. 31, 2011
6
Carrying value of the bonds at December 31, 2011
7
Interest expense for the YEAR ended Dec. 31, 2011
8
Interest paid for the YEAR ended Dec. 31, 2011
9
Interest expense for the 6 months ended June 30, 2012
10
Interest paid for the 6 months ended June 30, 2012
11
Interest expense for the 6 months ended Dec. 31, 2012
12
Interest paid for the 6 months ended Dec. 31, 2012
13
Carrying value of the bonds at Dec. 31, 2012
14
Interest expense for the YEAR ended Dec. 31, 2012
15
Interest paid for the YEAR ended Dec. 31, 2012
29) On December 31, 2010, Crystal Palace, Inc. issued $100,000 worth of 9% bonds at 107. The market rate of interest at the time of issue was 8%. These are 10-year bonds with interest paid semiannually on June 30 and December 31. The company uses the effective-interest method to amortize the discount.
Part A: For each item listed below, fill in the correct dollar amount in the column that represents the financial statement where the item will appear:
Part A:
Income Statement
Statement of Cash Flows
Balance Sheet
1.
Proceeds from issuing bonds
2.
Interest expense for the 6 months ended June 30, 2010
3.
Interest paid for the 6 months ended June 30, 2010
4.
Interest expense for the 6 months ended Dec. 31, 2010
5.
Interest paid for the 6 months ended Dec. 31, 2010
6.
Carrying value of the bonds at December 31, 2010
7.
Interest expense for the 6 months ended June 30, 2011
8.
Interest paid for the 6 months ended June 30, 2011
9.
Interest expense for the 6 months ended Dec. 31, 2011
10.
Interest paid for the 6 months ended Dec. 31, 2011
11.
Carrying value of the bonds at December 31, 2011
