P14.7 (LO 1, 2 ) (Entries for Life Cycle of Bonds) On April 1, 2020, Seminole...
P14.7 (LO 1, 2 ) (Entries for Life Cycle of Bonds) On April 1, 2020, Seminole Company sold 15,000 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Seminole took advantage of favorable prices of its stock to extinguish 6,000 of the bonds by issuing 200,000 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $31 per share on March 1, 2021.
Instructions Prepare the journal entries needed on the books of Seminole Company to record the following.
a. April 1, 2020: issuance of the bonds.
b. October 1, 2020: payment of semiannual interest.
c. December 31, 2020: accrual of interest expense.
d. March 1, 2021: extinguishment of 6,000 bonds. (No reversing entries made.)
Homework Answers
> P14-7B (Entries for Life Cycle of Bonds) On June 1, 2014, Royal Palm Company sold 6,000 of its 6%,
20-year, $1,000 face value bonds at 96. Interest payment dates are December 1 and Jume 1, and the company
uses the straight-line method of bond discount amortization. On February 1, 2015, Royal Palm took advantage of favorable prices of its stock to extinguish 4,000 of the bonds by issuing 500,000 shares of its $1 par
value common stock. At this time, the accrued interest was paid in cash. The company’s stock was selling
for $8.50 per share on February 1, 2015.
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c14BProblems.indd Page 2 28/01/13 2:19 PM f-391 14BProblems.indd Page 2 28/01/13 2:19 PM f-391 /208/WB00806_ONL/XXXXXXXXXXXXX/ch14/text_s 208/WB00806_ONL/XXXXXXXXXXXXX/ch14/text_s
B Problems 3
Instructions
Prepare the journal entries needed on the books of Royal Palm Company to record the following.
(a) June 1, 2014: issuance of the bonds.
(b) December 1, 2014: payment of semiannual interest.
(c) December 31, 2014: accrual of interest expense.
(d) February 1, 2015: extinguishment of 4,000 bonds. (No reversing entries made.)
MD Mahadi Hasan Tue, Dec 7, 2021 9:29 AM
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P14.7 (LO 1, 2 ) (Entries for Life Cycle of Bonds) On April 1,
2020, Seminole...
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Please show all work. Thanks! On April 1, 2020, Bonita Company sold 21,600 of its 10%,...
Please show all work. Thanks!
On April 1, 2020, Bonita Company sold 21,600 of its 10%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Bonita took advantage of favorable prices of its stock to extinguish 6,300 of the bonds by issuing 207,900 shares of its $10 par value common stock. At this time, the accrued interest was...
part d Your answer is partially correct. On April 1, 2020, Sarasota Company sold 15,300 of...
part d
Your answer is partially correct. On April 1, 2020, Sarasota Company sold 15,300 of its 12%, 15-year $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Sarasota took advantage of favorable prices of its stock to extinguish 6,900 of the bonds by issuing 227,700 shares of its $10 par value common stock. At this time, the accrued...
Problem 14-07 On April 1, 2020, Ayayai Company sold 14,400 of its 11%, 15-year, $1,000 face...
Problem 14-07 On April 1, 2020, Ayayai Company sold 14,400 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Ayayai took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
Problem 14-07 On April 1, 2020, Bonita Company sold 14,400 of its 11%, 15-year $1,000 face...
Problem 14-07 On April 1, 2020, Bonita Company sold 14,400 of its 11%, 15-year $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight line method of bond discount amortization. On March 1, 2021, Bonita took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the ccrued interest was pain cash....
Your answer is partially correct. On April 1, 2020, Monty Company sold 22,500 of its 11%,...
Your answer is partially correct. On April 1, 2020, Monty Company sold 22,500 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Monty took advantage of favorable prices of its stock to extinguish 5,400 of the bonds by issuing 178,200 shares of its $10 par value common stock. At this time, the accrued interest was...
On April 1, 2017, Teal Company sold 13,500 of its 11%, 15-year, $1,000 face value bonds...
On April 1, 2017, Teal Company sold 13,500 of its 11%, 15-year,
$1,000 face value bonds at 97. Interest payment dates are April 1
and October 1, and the company uses the straight-line method of
bond discount amortization. On March 1, 2018, Teal took advantage
of favorable prices of its stock to extinguish 6,300 of the bonds
by issuing 207,900 shares of its $10 par value common stock. At
this time, the accrued interest was paid in cash. The company’s...
*Problem 14-7 On April 1, 2017, Sarasota Company sold 16,200 of its 12%, 15-year, $1,000 face value bonds at 98, Interest payment dates are April 1 and October 1, and the company uses the straight-li...
*Problem 14-7 On April 1, 2017, Sarasota Company sold 16,200 of its 12%, 15-year, $1,000 face value bonds at 98, Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2018, Sarasota took advantage of favorable prices of its stock to extinguish 7,500 of the bonds by issuing 247,500 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
Please show all work. Thanks!
On April 1, 2020, Bonita Company sold 21,600 of its 10%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Bonita took advantage of favorable prices of its stock to extinguish 6,300 of the bonds by issuing 207,900 shares of its $10 par value common stock. At this time, the accrued interest was...
part d
Your answer is partially correct. On April 1, 2020, Sarasota Company sold 15,300 of its 12%, 15-year $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Sarasota took advantage of favorable prices of its stock to extinguish 6,900 of the bonds by issuing 227,700 shares of its $10 par value common stock. At this time, the accrued...
Problem 14-07 On April 1, 2020, Ayayai Company sold 14,400 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Ayayai took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
Problem 14-07 On April 1, 2020, Bonita Company sold 14,400 of its 11%, 15-year $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight line method of bond discount amortization. On March 1, 2021, Bonita took advantage of favorable prices of its stock to extinguish 4,200 of the bonds by issuing 138,600 shares of its $10 par value common stock. At this time, the ccrued interest was pain cash....
Your answer is partially correct. On April 1, 2020, Monty Company sold 22,500 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Monty took advantage of favorable prices of its stock to extinguish 5,400 of the bonds by issuing 178,200 shares of its $10 par value common stock. At this time, the accrued interest was...
On April 1, 2017, Teal Company sold 13,500 of its 11%, 15-year,
$1,000 face value bonds at 97. Interest payment dates are April 1
and October 1, and the company uses the straight-line method of
bond discount amortization. On March 1, 2018, Teal took advantage
of favorable prices of its stock to extinguish 6,300 of the bonds
by issuing 207,900 shares of its $10 par value common stock. At
this time, the accrued interest was paid in cash. The company’s...
*Problem 14-7 On April 1, 2017, Sarasota Company sold 16,200 of its 12%, 15-year, $1,000 face value bonds at 98, Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2018, Sarasota took advantage of favorable prices of its stock to extinguish 7,500 of the bonds by issuing 247,500 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash....
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