Venezuela Co. is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%.
List Of Accounts
Accumulated Depreciation-Equipment Accumulated Depreciation-Machinery Accumulated Depreciation-Plant and Equipment Allowance for Doubtful Accounts Bad Debt Expense Bond Issue Expense Bonds Payable Buildings Cash Common Stock Cost of Goods Sold Debt Investments Depreciation Expense Discount on Bonds Payable Discount on Notes Payable Discount on Notes Receivable Equipment Equity Investments Gain on Disposal of Machinery Gain on Disposal of Land Gain on Disposal of Plant Assets Gain on Redemption of Bonds Gain on Restructuring of Debt Gain on Sale of Machinery Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Disposal of Equipment Loss on Disposal of Land Loss on Redemption of Bonds Machinery Mortgage Payable No Entry Notes Payable Notes Receivable Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Premium on Bonds Payable Retained Earnings Salaries and Wages Expense Sales Sales Revenue Unamortized Bond Issue Costs Unearned Revenue Unearned Sales Revenue Unrealized Holding Gain or Loss - Equity Unrealized Holding Gain or Loss - Income |
January, 1, 2019 |
Cash A/c Dr. |
210000 |
|
Premium on Bonds Payable |
100000 |
||
Bonds Payable |
2000000 |
||
(Bond issued) |
July, 1 2022 |
Bond Payable A/c Dr. |
1000000 | |
Premium on Bonds Payable A/c Dr. |
23055 |
||
Loss on Redemption of Bond A/c Dr. |
41945 |
||
To cash |
1065000 |
Venezuela Co. is building a new hockey arena at a cost of $2,500,000. It received a...
Venezuela Co. is building a new hockey arena. Information concerning the arena follows. $2,500,000 $500,000 $2,000,000 Cost of arena Down payment received with fund-raising from local businesses to support the Issuance of bonds on January 1, 2016 Interest is paid annually on January 1, starting in 12 months. Stated interest rate on bonds Term of bonds in years Yield on bonds 10.50% 10 10.00% Wnstructions: Remember to show "cents" in all dollar amounts. (a) Prepare the journal entry to record...
Sunland Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $530,000 from local businesses to support the project, and now needs to borrow $2,090,000 to complete the project. It therefore decides to issue $2,090,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%. Your answer is partially correct. Assume that on July 1, 2022, Sunland Co.redeems half...
Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Celine Dion Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%.Prepare the journal entries to record the following.(Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account...
Flint Co. is building a new hockey arena at a cost of $2,660,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,210,000 to complete the project. It therefore decides to issue $2,210,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%. Your answer is partially correct. Prepare the journal entry to record the issuance of...
On January 1, 2020, Carter Company makes the two following acquisitions. 1. Purchases land having a fair value of $200,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $337,012. 2. Purchases equipment by issuing a 6%, 8-year promissory note having a maturity value of $250,000 (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Carter Company for the two...
Venezuela Co. is building a new hockey arena at a cost of $8,000,000 . It received a downpayment of $4,000,000 from local businesses to support the project, and now needs to borrow $4,000,000 to complete the project. It therefore decides to issue $4,000,000 of 10.00% 10 -year bonds. These bonds were issued on January 1, 2018, and pay interest annually on each January 1. The bonds yield 8.00% . . Instructions: (a) Prepare the journal entry to record the issuance...
Please show all work. Thanks in advance! Metlock Co. is building a new hockey arena at a cost of $2,460,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $1,960,000 to complete the project. It therefore decides to issue $1,960,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 9%. Your answer is partially correct. Try again....
Metlock Co. is building a new hockey arena at a cost of $2,510,000. It received a downpayment of $490,000 from local businesses to support the project, and now needs to borrow $2,020,000 to complete the project. It therefore decides to issue $2,020,000 of 10%, 10- year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1 . The bonds yield 9%. Your answer is correct. Prepare the journal entry to record the issuance...
CALCULATOR pRİN TER VERSION | | . BACK FULL SCREEN NEXT Brief Exercise 14-6 On January 1, 2017, Marigold Corporation issued $520,000 of 7% $484,667, and pay interest each July 1 and January 1. Marigold uses the effective-interest method. bonds, due in 10 years. The bonds were issued for 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...
McCormick Corporation issued a 4-year, $40,000, 5% note to Greenbush Company on January 1, 2020, and received a computer that normally sells for $31,495. The note requires annual interest payments each December 31. The market rate of interest for a note of similar risk is 12%. Prepare McCormick’s journal entries for (a) the January 1 issuance and (b) the December 31 interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the...