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On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7% payable in cash on December 31 of each year. The company amortizes the premium on a straight-line basis. Assuming a straight line amortization of the premium, the journal entry necessary to recognize interest expense on the December 31, Year 1 is...
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1. Assuming that a bond is originally issued at a premium, the
carrying value of the bond liability will decrease over the life of
the bond. This statement is
True or False
2.On January 1, Year 1 Residence Company issued bonds with a
$50,000 face value. The bonds were issued at 96 resulting in a 4%
discount. They had a 20 year term and a stated rate of interest of
7%. Based on this information, the carrying value of the...
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Question 35 On January 1, 2015, Bose Company issued bonds with a face value of $600,000. The bonds carry a stated interest of 7% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 95. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entry for the issuance assuming the bonds are issued at 105. (Credit account titles...
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On January 1, 2017, Klosterman Company issued $400,000, 8%,
10-year bonds at face value. Interest is payable annually on
January 1.
Question 1 On January 1, 2017, Klosterman Company issued $400,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account tities are automatically indented when amount is ent Date Account Titles and Explanation Debit Credit Jan. 1, 2017 SHOW LIST OF ACCOUNTS LINK...
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On January 1, 2022, Sheridan Company issued bonds with a face
value of $650,000. The bonds carry a stated interest of 8% payable
each January 1.
Prepare the journal entry for the issuance assuming the bonds
are issued at 98. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit...
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Sunland Company issued $332,000 of 5%, 10-year bonds on January
1, 2020, at face value. Interest is payable annually on January
1
Prepare the journal entry to record the redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1, 2027 Bonds Payable 315,400 Cash 315,400 e Textbook and Media List...
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Wildhorse Company issued $376,000 of 9%, 10-year bonds on
January 1, 2021, at face value. Interest is payable annually on
January 1, 2022.
(a)
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for
the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2021
(To record...
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On January 1, 2022, Sarasota Company issued $2,500,000 face value, 7%, 10-year bonds at $2,683,991. This price resulted in a 6% effective interest rate on the bonds. Sarasota uses the effective- interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. - Your answer is partially correct. Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, eg. 125. Credit account titles are automatically indented when amount is...
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On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year
bonds at face value. Interest is payable annually on January 1.
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2020
Prepare the journal entry to record the accrual of interest on
December 31, 2020. (Credit account titles are
automatically indented when amount is entered....
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Question 3 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. (a) Your answer is partially correct. Try again. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%....
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7% payable in cash on December 31 of each year. The company amortizes the premium on a straight-line basis. Assuming a straight line amortization of the premium, the journal entry necessary to recognize interest expense on the December 31, Year 1 is...
Question 35 On January 1, 2015, Bose Company issued bonds with a face value of $600,000. The bonds carry a stated interest of 7% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 95. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entry for the issuance assuming the bonds are issued at 105. (Credit account titles...
On January 1, 2017, Klosterman Company issued $400,000, 8%,
10-year bonds at face value. Interest is payable annually on
January 1.
Question 1 On January 1, 2017, Klosterman Company issued $400,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account tities are automatically indented when amount is ent Date Account Titles and Explanation Debit Credit Jan. 1, 2017 SHOW LIST OF ACCOUNTS LINK...
On January 1, 2022, Sheridan Company issued bonds with a face
value of $650,000. The bonds carry a stated interest of 8% payable
each January 1.
Prepare the journal entry for the issuance assuming the bonds
are issued at 98. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit...
Sunland Company issued $332,000 of 5%, 10-year bonds on January
1, 2020, at face value. Interest is payable annually on January
1
Prepare the journal entry to record the redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1, 2027 Bonds Payable 315,400 Cash 315,400 e Textbook and Media List...
On January 1, 2022, Sarasota Company issued $2,500,000 face value, 7%, 10-year bonds at $2,683,991. This price resulted in a 6% effective interest rate on the bonds. Sarasota uses the effective- interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. - Your answer is partially correct. Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, eg. 125. Credit account titles are automatically indented when amount is...
On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year
bonds at face value. Interest is payable annually on January 1.
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2020
Prepare the journal entry to record the accrual of interest on
December 31, 2020. (Credit account titles are
automatically indented when amount is entered....
Question 3 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. (a) Your answer is partially correct. Try again. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%....