ZuoTi.Pro
Question

Sheridan Company issued $660,000, 7%, 10-year bonds on December 31, 2019, for $590,000. Interest is payable...

Sheridan Company issued $660,000, 7%, 10-year bonds on December 31, 2019, for $590,000. Interest is payable annually on December 31. Sheridan Company uses the straight-line method to amortize bond premium or discount.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer:-

a)

Entry for issue Bonds.

Dec 31 2019

Cash A\c. Dr. 590000

Bond Payable on Discount. A\c Dr. 70000

BOND Payable. A\c. 660000

b) Payment for interest and discount

Dec 31 2019

Interest Expense. A\c. Dr. 53200

Bond Payable on Discount A\c. (W N 1) 7000

Cash A\c. (W N 2) 46200

c) Redemption of the Bond

Dec 31 2019

Bond Payable. A\c. 660000

Cash A\c. 660000

Working note:-

1) 70000/10 = 7000

2) 660000×7% = 46200

0 0
Add a comment
Know the answer?
Add Answer to:
Sheridan Company issued $660,000, 7%, 10-year bonds on December 31, 2019, for $590,000. Interest is payable...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Sandhill Company issued $800,000, 12%, 10-year bonds on December 31, 2019, for $730,000. Interest is payable...

    Sandhill Company issued $800,000, 12%, 10-year bonds on December 31, 2019, for $730,000. Interest is payable annually on December 31. Sandhill Company uses the straight-line method to amortize bond premium or discount. Your answer is correct. 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.) Debit Credit Date Account Titles and Explanation Dec. 31, 2019 Cash 730000 Discount on Bonds Payable 70000 Bonds Payable...

  • Oriole Company issued $306,000, 7%, 15-year bonds on December 31, 2021, for $293,760. Interest is payable...

    Oriole Company issued $306,000, 7%, 15-year bonds on December 31, 2021, for $293,760. Interest is payable annually on December 31. Oriole uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...

  • Magna Company issued $400,000, 6%, 15-year bonds on December 31, 2017 at 97. Interest is payable...

    Magna Company issued $400,000, 6%, 15-year bonds on December 31, 2017 at 97. Interest is payable annually on December 31. Magna uses the straight-line method to amortize bond premium or discount . Instructions Prepare the journal entries to record the following events. (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2018. (c) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and...

  • Wildhorse Company issued $810,000, 10%, 10-year bonds on December 31, 2019, for $740,000. Interest is payable...

    Wildhorse Company issued $810,000, 10%, 10-year bonds on December 31, 2019, for $740,000. Interest is payable annually on December 31. Wildhorse Company uses the straight-line method to amortize bond premium or discount. (a) Your answer is correct. 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 Dec. 31, 2019 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO...

  • Crane Company issued $468,000, 9%, 15-year bonds on December 31, 2016, for $449,280. Interest is payable...

    Crane Company issued $468,000, 9%, 15-year bonds on December 31, 2016, for $449,280. Interest is payable annually on December 31. Crane uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2017. (c) The redemption of the bonds at...

  • Exercise 15-16 a-c (Part Level Submission) Wildhorse Company issued $810,000, 10%, 10-year bonds on December 31,...

    Exercise 15-16 a-c (Part Level Submission) Wildhorse Company issued $810,000, 10%, 10-year bonds on December 31, 2019, for $740,000. Interest is payable annually on December 31. Wildhorse Company uses the straight-line method to amortize bond premium or discount. (a) 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 Dec. 31, 2019

  • Blossom Company issued $261,000,7%, 15-year bonds on December 31, 2021, for $250,560. Interest is payable annually...

    Blossom Company issued $261,000,7%, 15-year bonds on December 31, 2021, for $250,560. Interest is payable annually on December 31. Blossom uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at maturity,...

  • Crane Company issued $264,000, 8%, 15-year bonds on December 31, 2021, for $253,440. Interest is payable...

    Crane Company issued $264,000, 8%, 15-year bonds on December 31, 2021, for $253,440. Interest is payable annually on December 31. Crane uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...

  • Cullumber Company issued $333,000, 8%, 15-year bonds on December 31, 2021, for $319,680. Interest is payable...

    Cullumber Company issued $333,000, 8%, 15-year bonds on December 31, 2021, for $319,680. Interest is payable annually on December 31. Cullumber uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...

  • lossom company issued $/10,000, 12%, 10-year bonds on December 31, 2019, tor S640,000. Interest is payable...

    lossom company issued $/10,000, 12%, 10-year bonds on December 31, 2019, tor S640,000. Interest is payable annually on December 31, Blossom company uses the straight-line method to amortize bond premiu scount. repare 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 ec. 31, 2019 Interest Expense 92200 Interest Payable 85200 Discount on Bonds Payable SHOW LIST OF ACCOUNTS...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT