Homework Answers
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec 31 | Interest expense | 86,000 | |
| Amortization of Premium on Bonds Payable | 5,000 | ||
| Cash (1,300,000*7%) | 91,000 | ||
| (record rent expense) |
Amortization = (1,340,000-1,300,000)/8
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On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of...
Debt Issued at a Premium (Straight Line) On January 1, 2020, Ironman Steel issued $1,300,000, 8-year...
Debt Issued at a Premium (Straight Line) On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of interest was 7% and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31, 2023, assuming the straight-line method is followed. 2023 Dec. 31 Record interest expense
On December 31, 2013, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of...
On December 31, 2013, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of interest was 7% and interest is paid annually on December 31. Prepare the amortization table for Ironman Steel's bonds. Period Cash Payment (Credit) Interest Expense (Debit) Premium on Bonds Payable (Debit) Premium on Bonds Payable Balance Carrying Value
1. On January 1, Year 1, Price Co. issued $393,000 of five-year, 6 percent bonds at...
1. On January 1, Year 1, Price Co. issued $393,000 of five-year,
6 percent bonds at 95. Interest is payable annually on December 31.
The discount is amortized using the straight-line method.
Required
Prepare the journal entries to record the bond transactions for
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- Record the entry for issuance of bonds
-Record the entry for recognizing interest expense on Dec. 31,
Year 1
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On January 1, Taylor Inc. issued $200,000 par bonds with a stated rate of 8% that...
On January 1, Taylor Inc. issued $200,000 par bonds with a stated rate of 8% that mature in 5 years. The market rate on the date of issuance was 10% and the bonds pay interest semiannually on June 30 and December 31. Prepare the journal entry to record the issuance of the bonds. Also prepare the journal entry for June 30 and December 31 of the first year assuming Taylor uses the SL amortization method. Finally, indicate the total amount...
On January 1, Year 1, Price Co. issued $144,000 of five-year, 6 percent bonds at 95....
On January 1, Year 1, Price Co. issued $144,000 of five-year, 6 percent bonds at 95. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A) Record the entry for issuance of bonds. B) Record the entry for recognizing interest...
3. On January 1, 2021 Clayton Co. issued $1,300,000 of 20-year, 9 % bonds , for...
3. On January 1, 2021 Clayton Co. issued $1,300,000 of 20-year, 9 % bonds , for $1,225,000. Interest is payable annually on January 1. The company uses the straight-line method to amortization any bond discount or premium. REQUIRED (16 points) Prepare journal entries to record the following (round to nearest dollar.) Jan 1, 2021 Issuance of the bonds on January 1, 2021 Dec 31, 2021 Recorded accrued interest Jan 1, 2022 Jan 1, 2022 Payment of interest After payment of...
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On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 5.50 percent, so the total proceeds from the bond issue were $101,347. Methodical uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare...
On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of...
On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of S100 million. The bonds mature on December 31,2048. Interest is payable annually on each December 31, beginning in 2019. Part Ji Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 790. Part 2: Assuming the bonds were issues on December 31, 2018, prepare the journal entry to record the issuance on December...
Debt Issued at a Premium (Straight Line) On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of interest was 7% and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31, 2023, assuming the straight-line method is followed. 2023 Dec. 31 Record interest expense
1. On January 1, Year 1, Price Co. issued $393,000 of five-year,
6 percent bonds at 95. Interest is payable annually on December 31.
The discount is amortized using the straight-line method.
Required
Prepare the journal entries to record the bond transactions for
Year 1 and Year 2.
- Record the entry for issuance of bonds
-Record the entry for recognizing interest expense on Dec. 31,
Year 1
-Record the entry for recognizing interest expense on Dec. 31,
Year...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
Champion Oil issued 10-year bonds dated January 1, 2020. The bonds were issued on March 1, 2020, with accrued interest. Interest was payable on the bonds on January 1 and July 1 of each year. The company's year-end was December 31. Champion followed ASPE and chose to use the straight-line amortization method. On May 31, 2023, Champion retired a portion of the bond issue, paying any accrued interest at that date. Addtional information pertaining to the bond issue follows: Face...
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On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of S100 million. The bonds mature on December 31,2048. Interest is payable annually on each December 31, beginning in 2019. Part Ji Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 790. Part 2: Assuming the bonds were issues on December 31, 2018, prepare the journal entry to record the issuance on December...
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