Sheridan Company issues $280,000, 20-year, 10% bonds at 102. Prepare the journal entry to record the...

Question

Question

Sheridan Company issues $280,000, 20-year, 10% bonds at 102. Prepare the journal entry to record the sale of these bonds on J

Answer 1

Answer #1

Journal

Par value of bonds = $280,000

Issue price of bonds = 280,000 x 102%

= $285,600

Premium on bonds payable = Issue price of bonds - Par value of bonds

= 285,600 - 280,000

= $5,600

Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubt. Thanks.

Answer 2

Similar Homework Help Questions

Oriole Company issues $270,000, 20-year, 10% bonds at 102. Prepare the journal entry to record the...

Oriole Company issues $270,000, 20-year, 10% bonds at 102. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Cash Bonds Payable 270,000 Premium on Bonds Payable
Ivanhoe Company issues $265,000. 20-year, 10% bonds at 103. Prepare the journal entry to record the...

Ivanhoe Company issues $265,000. 20-year, 10% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Sandhill Co. issues $350,000. 20-year, 10% bonds at 101. Prepare the journal entry to record the...

Sandhill Co. issues $350,000. 20-year, 10% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Larkspur, Inc. issues $251,000, 10-year, 10% bonds at 96. Prepare the journal entry to record the...

Larkspur, Inc. issues $251,000, 10-year, 10% bonds at 96. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Larkspur, Inc. issues $251,000, 10-year, 10% bonds at 96. Prepare the journal entry to record the...

Larkspur, Inc. issues $251,000, 10-year, 10% bonds at 96. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Larkspur, Inc. issues $273,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the...

Larkspur, Inc. issues $273,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Shamrock, Inc. issues $266,000. 10-year, 10% bonds at 98. Prepare the journal entry to record the sale of these bonds o...

Shamrock, Inc. issues $266,000. 10-year, 10% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Sheridan Company issues $325,000 of bonds for $338,000. Prepare the journal entry to record the issuance...

Sheridan Company issues $325,000 of bonds for $338,000. 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.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS Show how the bonds would be reported on the balance sheet at the date of issuance. (Enter account name only and do not provide descriptive information.) Sheridan Company Balance Sheet Click if you would like to Show...
Teal Mountain Inc. issues $270,000. 10-year, 6% bonds at 98. Prepare the journal entry to record...

Teal Mountain Inc. issues $270,000. 10-year, 6% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Brief Exercise 10-08 Skysong, Inc. issues $256,000, 10-year, 7% bonds at 98. Prepare the journal entry...

Brief Exercise 10-08 Skysong, Inc. issues $256,000, 10-year, 7% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid...