ZuoTi.Pro
Question

Simko Company issued $720,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued...

Simko Company issued $720,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued for $640,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record (a) the bond issuance on January 1, 2018, and (b) the payment of interest on December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

  • Record the issuance of bonds with a face value of $720,000 for $640,000.

Note: Enter debits before credits.
Date General Journal Debit Credit
January 01, 2018
  • ecord the interest payment on December 31, 2018.

Note: Enter debits before credits.
Date General Journal Debit Credit
December 31, 2018
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Date General Journal Debit Credit Jan, 01, 2018 Cash Discount on issue of bonds 6 percent bonds $ 640,000 $80.000 $420,000 DeIf you are satisfied with the answer please give a like below

If not please post your doubts in Comments section

0 0
Add a comment
Answer #2

answered by: Debanhi Salazar
0 0
Add a comment
Know the answer?
Add Answer to:
Simko Company issued $720,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Clem Company issued $840,000, 10- year, 4 percent bonds on January 1, 2015. The bonds sold...

    Clem Company issued $840,000, 10- year, 4 percent bonds on January 1, 2015. The bonds sold for $761,000. Interest is payable annually on December 31. Using effective- interest amortization, prepare journal entries to record (a) the bond issuance on January 1, 2015, and (b) the payment of interest on December 31, 2015. The market interest rate on the bonds is 5 percent. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)...

  • On January 1, 2018, Bishop Company issued 10% bonds dated January 1, 2018, with a face...

    On January 1, 2018, Bishop Company issued 10% bonds dated January 1, 2018, with a face amount of $19.3 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to the...

  • Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market...

    Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $275,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium Required 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...

  • Dunphy Company issued $10,000 of 6%, 10-year bonds at par value on January 1. Interest is...

    Dunphy Company issued $10,000 of 6%, 10-year bonds at par value on January 1. Interest is paid semiannually each June 30 and December 31. Prepare the entries for (a) the issuance of the bonds and (b) the first interest payment on June 30. View transaction list Journal entry worksheet Record the issuance of the bonds. Note: Enter debits before credits Date Jan 01 General Journal Debit Credit Record entry Clear entry View general journal < Prev 1 of 17 !!!...

  • Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value...

    Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $92,000 and semiannual interest payments. (0) (1) (2) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $7,951 7,156 6,361 Carrying Value $99,951 99, 156 98,361 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c)...

  • Universal Foods issued 8% bonds, dated January 1, with a face amount of $250 million on...

    Universal Foods issued 8% bonds, dated January 1, with a face amount of $250 million on January 1, 2018. The bonds mature on December 31, 2032 (15 years). The market rate of interest for similar issues was 10%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:...

  • Wookie Company issues 6%, five-year bonds, on January 1 of this year, with a par value...

    Wookie Company issues 6%, five-year bonds, on January 1 of this year, with a par value of $102,000 and semiannual interest payments. (0) (1) (2) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $8,151 7,336 6,521 Carrying Value $110,151 109,336 108,521 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The...

  • On January 1, Innovative Solutions, Inc., issued $210,000 in bonds at face value. The bonds have a stated intere...

    On January 1, Innovative Solutions, Inc., issued $210,000 in bonds at face value. The bonds have a stated interest rate of 7 percent. The bonds mature in 10 years and pay interest once per year on December 31 Required: 1,2 & 3. Prepare the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 102 (if...

  • On March 1, 2018, Stratford Lighting issued 10% bonds, dated March 1, with a face amount...

    On March 1, 2018, Stratford Lighting issued 10% bonds, dated March 1, with a face amount of $420,000. The bonds sold for $414,000 and mature on February 28, 2038 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight-line method and its fiscal year ends December 31. Required: 1. to 4. Prepare the journal entry to record the issuance of the bonds by Stratford Lighting on March 1, 2018, interest on August 31, 2018,...

  • Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market...

    Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market interest rate of 5.50 percent. The bonds had a total face value of $258,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT