ZuoTi.Pro
Question

E14.13 (LO 1, 2) (Entries for Redemption and Issuance of Bonds) Matt Perry, Inc. had outstanding $6,000,000 of 11% bonds (int

Please write the steps to get the answers.

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

Homework Answers

Answer #1

Journal entry

No General Journal Debit Credit
a Cash (9000000*.98) 8820000
Discount on bonds payable 180000
Bonds payable 9000000
(To record bond issue)
b Bonds payable 6000000
Loss on bond redemption 240000
Discount on bonds payable 120000
Cash (6000000*1.02) 6120000
(To record refund of bonds)
0 1
Add a comment
Know the answer?
Add Answer to:
Please write the steps to get the answers. E14.13 (LO 1, 2) (Entries for Redemption and...
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

  • Matthew Perry Company had outstanding $6,000,000 of 11% bonds (interest payable January 31 and July 31)...

    Matthew Perry Company had outstanding $6,000,000 of 11% bonds (interest payable January 31 and July 31) due in 10 years. On July 1, the company issued $9,000,000 of 10%, 15-year bonds (interest payable on January 1 and July 1) at 98. A portion of the proceeds of the $9,000,000 bonds was used to call the entire balance of the 11% bonds (with an unamortized discount of $120,000) at 102 on August 1. Instructions: Prepare the journal entries necessary to (1)...

  • Sarasota, Inc. had outstanding $6,340,000 of 11% bonds (interest payable July 31 and January 31) due...

    Sarasota, Inc. had outstanding $6,340,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,570,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $190,200) at 103 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.

  • Crane, Inc. had outstanding $5,860,000 of 11% bonds (interest payable July 31 and January 31) due...

    Crane, Inc. had outstanding $5,860,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,880,000 of 11%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $58,600) at 101 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (To record...

  • 14-13 Pronghorn, Inc. had outstanding $6,340,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years....

    14-13 Pronghorn, Inc. had outstanding $6,340,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,570,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $190,200) at 103 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Round...

  • Accounting: bonds payable

    Ayayai, Inc. had outstanding $6,130,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,040,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $61,300) at 101 on August 1.Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. 

  • Please explain detail Sweet, Inc. had outstanding $5,580,000 of 12% bonds (interest payable July 31 and...

    Please explain detail Sweet, Inc. had outstanding $5,580,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,400,000°f 10%, 15-year bonds (interest payable July 1 and January 1) at 99. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $111,600) at 102 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds....

  • Carla, Inc. had outstanding $6,060,000 of 11% bonds (interest payable July 31 and January 31) due...

    Carla, Inc. had outstanding $6,060,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,860,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $242,400) at 104 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Round answers...

  • Please provide step by step solutions for learning purposes Pharoah, Inc. had outstanding $5,770,000 of 12%...

    Please provide step by step solutions for learning purposes Pharoah, Inc. had outstanding $5,770,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,800,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $230,800) at 104 on August 1. Prepare the journal entries necessary to record issue of the new...

  • E14.14 (LO 1, 2) (Entries for Redemption and Issuance of Bonds) On June 30, 2012, County...

    E14.14 (LO 1, 2) (Entries for Redemption and Issuance of Bonds) On June 30, 2012, County Company issued 12% bonds with a par value of $800,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2020. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2021, and to issue new bonds. New 10%...

  • Prepare entries for bond interest and redemption 12. (LO 3) The following section is taken from...

    Prepare entries for bond interest and redemption 12. (LO 3) The following section is taken from Ohlman Corp.'s balance sheet at December 31. 2019. Current liabilities Interest payable $112.000 Long-term liabilities Bonds payable, 75, due January 1, 2022 1,600,000 es is payable annually on January 1. The bonds are callable on any interest date Instructions a. Journalize the payment of the bond interest on Jawwary 1, 2020 b. Assume that on January 1, 2020. after paying interest. O n calls...

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