Part 14-5
No. |
Accounts title and explanation |
Debit |
Credit |
a. |
Cash |
408000 |
|
Bonds payable |
400000 |
||
Interest payable (400000*6%*4/12) |
8000 |
||
b. |
Interest expense |
12000 |
|
Cash (400000*6%*6/12) |
12000 |
||
c. |
Interest expense |
12000 |
|
Interest payable |
12000 |
Part 14-6
No. |
Accounts title and explanation |
Debit |
Credit |
a. |
Cash |
559224 |
|
Bonds payable |
559224 |
||
b. |
Interest expense (559224*8%*6/12) |
22369 |
|
Cash (600000*7%*6/12) |
21000 |
||
Bonds payable |
1369 |
||
c. |
Interest expense ((559224+1369)*8%*6/12) |
22424 |
|
Cash (600000*7%*6/12) |
21000 |
||
Bonds payable |
1424 |
Part 14-7
No. |
Accounts title and explanation |
Debit |
Credit |
a. |
Cash |
644636 |
|
Bonds payable |
644636 |
||
b. |
Interest expense (644636*6%*6/12) |
19339 |
|
Bonds payable |
1661 |
||
Cash (600000*7%*6/12) |
21000 |
||
c. |
Interest expense ((644636-1661)*8%*6/12) |
19289 |
|
Bonds payable |
1711 |
||
Cash (600000*7%*6/12) |
21000 |
Part 14-8
No. |
Accounts title and explanation |
Debit |
Credit |
a. |
Interest expense (644636*6%*2/12) |
6446 |
|
Bonds payable |
554 |
||
Interest payable (600000*7%*2/12) |
7000 |
c) December 31. Assume The Colson Company records straight-line amortization semiannually. 14-5 (L01) Devers Corporation issued...
Brief Exercise 14-5 Teal Corporation issued $504,000 of 5% bonds on May 1, 2017. The bonds were dated January 1, 2017, and mature January 1, 2020, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest. Prepare Teal's journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and...
Brief Exercise 14-6 On January 1, 2017, Splish Corporation issued $640,000 of 9% bonds, due in 8 years. The bonds were issued for $605,318, and pay interest each July 1 and January 1. Splish uses the effective-interest method. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%
On January 1, 2017, Sandhill Corporation issued $550,000 of 7% bonds, due in 8 years. The bonds were issued for $517,958, and pay interest each July 1 and January 1. Sandhill uses the effective-interest method. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%.
E14-4 (L01) EXCEL (Entries for Bond Transactions-Straight-Line) Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1, 2017, at 102. Interest is payable semiannually on July 1 and January 1. Dion Company uses the straight-line method of amortization for bond premium or discount Instructions Prepare the journal entries to record the following. (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2017 (c) The accrual of interest and the...
Brief Exercise 14-7 On January 1, 2017, Oriole Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were issued for $698,454, and pay interest each July 1 and January 1. The effective-interest rate is 8%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Oriole uses the effective interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer...
On January 1, 2017, Skysong Corporation issued $650,000 of 9% bonds, due in 10 years. The bonds were issued for $694,171, and pay interest each July 1 and January 1 The effective interest rate is 8%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment and (c) the December 31 adjusting entry. Skysong uses the effective-interest method. (Round intermediate calculations to 6 decimal places, eg. 1.251247 and final answer to 0 decimal...
Brief Exercise 14-6 On January 1, 2017, Sunland Corporation issued $480,000 of 7% bonds, due in 10 years. The bonds were issued for $447,385, and pay interest each July 1 and January 1. Sunland uses the effective-interest method. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer...
On January 1, 2020, Pearl Corporation issued $610,000 of 9% bonds, due in 10 years. The bonds were issued for $571,991, and pay interest each July 1 and January 1. Pearl uses the effective-interest method. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%.
Brief Exercise 14-6 On January 1, 2017, Ivanhoe Corporation issued $610,000 of 9% bonds, due in 10 years. The bonds were issued for $571,991, and pay interest each July 1 and January 1. Ivanhoe uses the effective-interest method. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer...
View Policies Current Attempt in Progress On January 1, 2017. Tamarisk Corporation issued $560,000 of 7% bonds, due in 10 years. The bonds were issued for $601,659, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Tamarisk uses the effective-interest method. (Round intermediate calculations to 6 decimal places , eg. 1.251247...