ZuoTi.Pro
Question

SkysongLtd. issued a $953,000, 10-year bond dated January 1, 2020. The bond was sold to yield...

SkysongLtd. issued a $953,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company’s year-end was December 31, and Skysong followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.

Proceeds from sale of bond $
                                                          DiscountPremium on bond $


Prepare the journal entries for above transactions. (Round answers 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.)

Date

Account Titles and Explanation

Debit

Credit
                                                          January 1, 2020July 1, 2020December 31, 2020January 1, 2021
                                                          January 1, 2020July 1, 2020December 31, 2020January 1, 2021
                                                          January 1, 2020July 1, 2020December 31, 2020January 1, 2021
                                                          January 1, 2020July 1, 2020December 31, 2020January 1, 2021
business   accounting   
0 1
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer 1. Proceeds from sale of bond discount on bond 849,809 103,191 Table Value Based on na Amount Cash Flow Interest - $95journal entries Date Debit credit jan 1 2020 Account Title and Explanation Cash Discount on Issue of Bonds Bonds Payable reco

0 0
Add a comment
Know the answer?
Add Answer to:
SkysongLtd. issued a $953,000, 10-year bond dated January 1, 2020. The bond was sold to yield...
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

  • Brief Exercise 15-03 a-c Sunland Corporation issued 3,800, 9%, 5-year, $1,000 bonds dated January 1, 2020,...

    Brief Exercise 15-03 a-c Sunland Corporation issued 3,800, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Janaury 1, 2020 Prepare the adjusting journal entry on December 31, 2020, to record interest expense. (Credit account titles are...

  • Kingbird, Inc. issued 3,300,7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid...

    Kingbird, Inc. issued 3,300,7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Your answer is partially correct. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 cash Bonds Payable e Textbook and Media List of Accounts Your answer is partially correct. Prepare the adjusting...

  • The government lent $80,000 to Oriole Industries, who signed a 5-year, zero-interest note dated January 1,...

    The government lent $80,000 to Oriole Industries, who signed a 5-year, zero-interest note dated January 1, 2021 to help finance the construction of a building. The market rate of interest is 5% and the effective interest method of amortization is used. The loan will be forgiven if Oriole provides employment for a specified number of individuals for a specified period of time. If these conditions are not met, the amount is due to the government in full in five years....

  • Splish Brothers Inc. issued 3,900, 7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each Januar...

    Splish Brothers Inc. issued 3,900, 7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1 Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Cre dit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 SHOW LIST OF ACCOUNTS Prepare the adjusting journal entry on December 31, 2020, to record interest expense. (Credit account titles...

  • Novak Ltd. sold $6,430,000 of 10% bonds, which were dated March 1, 2020, on June 1,...

    Novak Ltd. sold $6,430,000 of 10% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2030, and the bonds were issued to yield 12%. Novak's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Novak bought back $2,430,000 worth of bonds for $2,330,000 plus accrued interest. Using 1. a financial calculator, or 2....

  • On January 1, 2020, Wildhorse Ltd. issued 870 5-year, 10% convertible bonds at par of $1,000,...

    On January 1, 2020, Wildhorse Ltd. issued 870 5-year, 10% convertible bonds at par of $1,000, with interest payable each December 31. Each bond is convertible into 100 common shares, and the current fair value of each common share is $6. Similar straight bonds carry an interest rate of 12%. Calculate the PV of the debt component by itself. Calculate using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel function PV. (For calculation...

  • 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...

  • Sheridan Ltd. sold $7,060,000 of 12% bonds, which were dated March 1, 2020, on June 1,...

    Sheridan Ltd. sold $7,060,000 of 12% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2030, and the bonds were issued to yield 14%. Sheridan's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Sheridan bought back $3,060,000 worth of bonds for $2,960,000 plus accrued interest. Using 1. a financial calculator, or 2....

  • Carla Vista Electric sold $3,250,000, 10%, 10-year bonds on January 1, 2020. The bonds were dated...

    Carla Vista Electric sold $3,250,000, 10%, 10-year bonds on January 1, 2020. The bonds were dated January 1 and pay interest annually on January 1. Carla Vista Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. 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.) Account Titles and Explanation Debit Credit Date...

  • Brief Exercise 10-10 Indigo Corporation issued 3,000 8%, 6-year, $1,000 bonds dated January 1, 2022, at...

    Brief Exercise 10-10 Indigo Corporation issued 3,000 8%, 6-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1, 2022 (b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account...

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