Sandhill Inc., a private company following ASPE is contemplating issuing $150,000, 5-year bond on January 1,...
Sandhill Inc., a private company following ASPE is contemplating
issuing $150,000, 5-year bond on January 1, 2021 paying 6% interest
on a semi-annual basis every January 1 and July 1.
Prepare the first-year journal entries for the bond issue and
interest expense assuming that the company uses straight-line
amortization, a market interest rate of 5% and has a year-end of
December 31, 2021. (Round answer to 0 decimal places,
e.g. 5,275. 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.)f
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Sandhill Inc., a private company following ASPE is contemplating
issuing $150,000, 5-year bond on January 1,...
Splish Inc. issued $120,000, 5-year bond on January 1, 2021 paying 8% interest on a semi-annual...
Splish Inc. issued $120,000, 5-year bond on January 1, 2021 paying 8% interest on a semi-annual basis every January 1 and July 1. Prepare the first-year journal entries for the bond issue and interest expense assuming that the company uses the effective interest method, a market interest rate of 7% and has a year-end of December 31, 2021. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent...
Please help us to get the amount for entries. This is ASPE question(Canadian private company standards)....
Please help us to get the amount for
entries. This is ASPE question(Canadian private company
standards).
On January 1, 2020. Sandhill Corporation issued 11% bonds with a par value of $5,170,000, due in 10 years. The company incurred $195,000 in costs associated with the issuance of the bonds, which were capitalized. The bonds were issued at 102, and paid interest on January 1 and July 1 each year. Sandhill's year-end was March 31. The company followed ASPE and chose to...
On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year bonds at face value. Interest 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....
If you can give me explanations that would be helpful, thanks. The following is taken from the Sandhill Company balance...
If you can give me explanations that would be helpful,
thanks.
The following is taken from the Sandhill Company balance sheet. Sandhill Company Balance Sheet (partial) December 31, 2020 Current Liabilities Interest payable (for 12 months from January 1 to December 31) Long-term Liabilities Bonds payable, 9% due January 1, 2028 Add: Premium on bonds payable $271,800 $3,020,000 212,000 $3,232,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sandhill uses straight-line amortization...
Sandhill Corporation issued $680,000, 7%, 20-year bonds on January 1, 2020, for $613,236. This price resulted...
Sandhill Corporation issued $680,000, 7%, 20-year bonds on January 1, 2020, for $613,236. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Sandhill uses the effective-interest method to amortize bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and...
Kingbird, Inc. issued $480,000, 596, 20-year bonds on January 1, 2019, at 101. Interest is payable annually on January 1. Kingbird uses straight-line amortization for bond premium or discount. Prepar...
Kingbird, Inc. issued $480,000, 596, 20-year bonds on January 1, 2019, at 101. Interest is payable annually on January 1. Kingbird uses straight-line amortization for bond premium or discount. 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 Prepare the journal entry to record the accrual of interest and the premium amortization on December 31,2019....
On January 1, 2018, Irik Corporation issued $2,550,000 face value, 7%, 10-year bonds at $2.378,893. This...
On January 1, 2018, Irik Corporation issued $2,550,000 face value, 7%, 10-year bonds at $2.378,893. This price resulted in an effective- interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Prepare the journal entry to record the issue of the bonds on January 1, 2018. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Jan. 1, 2018 Prepare an amortization table through...
On January 1, 2020, Kingbird, Inc. issued $2,680,000 face value, 12%, 10-year bonds at $2,534,577. This price resulted...
On January 1, 2020, Kingbird, Inc. issued $2,680,000 face value, 12%, 10-year bonds at $2,534,577. This price resulted in an effective-interest rate of 13% on the bonds. Kingbird uses the effective interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account...
On January 1, 2015, Sheffield Industries Inc. issued a $1,017,000, 10-year bond. The bond sold at...
On January 1, 2015, Sheffield Industries Inc. issued a $1,017,000, 10-year bond. The bond sold at 97, and paid 13% interest each January 1 and July 1. Sheffield called at 103 and cancelled the bond on January 1, 2020. Assume the company used the straight-line method of amortization. Calculate the gain or loss on redemption. $=? (Gain/Loss) Prepare the journal entry to record the early retirement of the bond. (Credit account titles are automatically indented when the amount is entered....
Question 3 Whispering Winds, Inc., a private company that applies ASPE, incurred $14,400 in materials and...
Question 3
Whispering Winds, Inc., a private company that applies ASPE,
incurred $14,400 in materials and $12,700 in direct labour costs
between January and March 2017 to develop a new product. In May
2017, the criteria required to capitalize development costs were
met. A further $49,400 was spent for materials, $16,200 for direct
labour costs, $3,100 for borrowing costs, and $66,100 for directly
related legal fees.
Prepare the appropriate journal entries. (Credit
account titles are automatically indented when the amount...
Please help us to get the amount for
entries. This is ASPE question(Canadian private company
standards).
On January 1, 2020. Sandhill Corporation issued 11% bonds with a par value of $5,170,000, due in 10 years. The company incurred $195,000 in costs associated with the issuance of the bonds, which were capitalized. The bonds were issued at 102, and paid interest on January 1 and July 1 each year. Sandhill's year-end was March 31. The company followed ASPE and chose to...
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....
If you can give me explanations that would be helpful,
thanks.
The following is taken from the Sandhill Company balance sheet. Sandhill Company Balance Sheet (partial) December 31, 2020 Current Liabilities Interest payable (for 12 months from January 1 to December 31) Long-term Liabilities Bonds payable, 9% due January 1, 2028 Add: Premium on bonds payable $271,800 $3,020,000 212,000 $3,232,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sandhill uses straight-line amortization...
Kingbird, Inc. issued $480,000, 596, 20-year bonds on January 1, 2019, at 101. Interest is payable annually on January 1. Kingbird uses straight-line amortization for bond premium or discount. 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 Prepare the journal entry to record the accrual of interest and the premium amortization on December 31,2019....
On January 1, 2018, Irik Corporation issued $2,550,000 face value, 7%, 10-year bonds at $2.378,893. This price resulted in an effective- interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Prepare the journal entry to record the issue of the bonds on January 1, 2018. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Jan. 1, 2018 Prepare an amortization table through...
On January 1, 2020, Kingbird, Inc. issued $2,680,000 face value, 12%, 10-year bonds at $2,534,577. This price resulted in an effective-interest rate of 13% on the bonds. Kingbird uses the effective interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account...
Question 3
Whispering Winds, Inc., a private company that applies ASPE,
incurred $14,400 in materials and $12,700 in direct labour costs
between January and March 2017 to develop a new product. In May
2017, the criteria required to capitalize development costs were
met. A further $49,400 was spent for materials, $16,200 for direct
labour costs, $3,100 for borrowing costs, and $66,100 for directly
related legal fees.
Prepare the appropriate journal entries. (Credit
account titles are automatically indented when the amount...
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