Homework Answers
| Answer | |||
| Face Value =$ 477000 | |||
| Premium =23850 | |||
| Amortisation of premium =23850/30year=795 per year | |||
| Interest on bonds =477000*6% =$ 28620 | |||
| Interest payable =28620-795= $27825 | |||
| Date | Particulars | debit | credit |
| 01-Jan-22 | Cash | $ 5,00,850 | |
| Bond payable | $ 4,77,000 | ||
| Prerimum on bond payable | $ 23,850 | ||
| 31-Dec-22 | Interest Exp | $ 27,825 | |
| Prerimum on bond payable | $ 795 | ||
| Interest Payable | $ 28,620 | ||
| 01-Jan-23 | Interest Payable | $ 28,620 | |
| Cash | $ 28,620 | ||
| 01-Jan-43 | Bond payable | $ 4,77,000 | |
| Cash | $ 4,77,000 | ||
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Exercise 10-25 Sandhill Co. issued $477,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest...
Exercise 10-25 Sandhill Co. issued $510,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest...
Exercise 10-25 Sandhill Co. issued $510,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for 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) (b) (c) (d) The issuance of the bonds. The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on...
Wildhorse Co. issued $513,000,7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually...
Wildhorse Co. issued $513,000,7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight line amortization for 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) (b) (c) (d) The issuance of the bonds The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on January 1,...
Wildhorse Co. issued $480,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable...
Wildhorse Co. issued $480,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for 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 accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Wildhorse Co. issued $513,000, 7%, 30-year bonds on January 1, 2022, at 105. Interest is payable...
Wildhorse Co. issued $513,000, 7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for 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. The accrual of interest and the premium amortization on December 31, 2022 (b) (c) The payment of interest on January 1, 2023....
Cullumber Company issued $456,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable...
Cullumber Company issued $456,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Cullumber uses straight-line amortization for 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 accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Exercise 10-17 Sandhill Co. issued $310,000 of 8%, 20-year bonds on January 1, 2022, at face...
Exercise 10-17
Sandhill Co. issued $310,000 of 8%, 20-year bonds on January 1,
2022, 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, 2022
enter an account title to record the issuance of the bonds on
January 1, 2017
enter a debit amount
enter a...
Blossom Company issued $450,000, 6%, 30 year bonds on January 1, 2022, at 102. Interest is...
Blossom Company issued $450,000, 6%, 30 year bonds on January 1, 2022, at 102. Interest is payable annually on January 1, Blossom uses straight-line amortization for bond premium discount Prepare the journal entries to record the following events. (Credit account des are automatically inde hemount is entered. Do not indent manually) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. Id The payment of interest on January 1, 2023. (d)...
Pharoah Company issued $465,000, 7%, 30-year bonds on January 1, 2022, at 104. Interest is payable...
Pharoah Company issued $465,000, 7%, 30-year bonds on January 1, 2022, at 104. Interest is payable annually on January 1. Pharoah uses straight-line amortization for 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 accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Sandhill Co. sold $3,190,000, 8%, 10-year bonds on January 1, 2022. The bonds were dated January...
Sandhill Co. sold $3,190,000,
8%, 10-year bonds on January 1, 2022. The bonds were dated January
1, 2022, and pay interest on January 1. The company uses
straight-line amortization on bond premiums and discounts.
Financial statements are prepared annually.
List of Accounts Problem 10-09A Accounts Payable Accounts Receivable Accumulated Depreciation Equipment Accrued Pension Liability Bonds Payable Buildings Cash Common Stock Cost of Goods Sold Current Portion of Long-Term Debt Depreciation Expense Discount on Bonds Payable Dividends Equipment Federal Income Taxes...
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....
Exercise 10-25 Sandhill Co. issued $510,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for 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) (b) (c) (d) The issuance of the bonds. The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on...
Wildhorse Co. issued $513,000,7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight line amortization for 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) (b) (c) (d) The issuance of the bonds The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on January 1,...
Wildhorse Co. issued $480,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for 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 accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Wildhorse Co. issued $513,000, 7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for 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. The accrual of interest and the premium amortization on December 31, 2022 (b) (c) The payment of interest on January 1, 2023....
Cullumber Company issued $456,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Cullumber uses straight-line amortization for 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 accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Exercise 10-17
Sandhill Co. issued $310,000 of 8%, 20-year bonds on January 1,
2022, 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, 2022
enter an account title to record the issuance of the bonds on
January 1, 2017
enter a debit amount
enter a...
Blossom Company issued $450,000, 6%, 30 year bonds on January 1, 2022, at 102. Interest is payable annually on January 1, Blossom uses straight-line amortization for bond premium discount Prepare the journal entries to record the following events. (Credit account des are automatically inde hemount is entered. Do not indent manually) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. Id The payment of interest on January 1, 2023. (d)...
Pharoah Company issued $465,000, 7%, 30-year bonds on January 1, 2022, at 104. Interest is payable annually on January 1. Pharoah uses straight-line amortization for 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 accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Sandhill Co. sold $3,190,000,
8%, 10-year bonds on January 1, 2022. The bonds were dated January
1, 2022, and pay interest on January 1. The company uses
straight-line amortization on bond premiums and discounts.
Financial statements are prepared annually.
List of Accounts Problem 10-09A Accounts Payable Accounts Receivable Accumulated Depreciation Equipment Accrued Pension Liability Bonds Payable Buildings Cash Common Stock Cost of Goods Sold Current Portion of Long-Term Debt Depreciation Expense Discount on Bonds Payable Dividends Equipment Federal Income Taxes...
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....
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