Homework Answers
a) Journal Entry for the payment of the bond interest on Jan 1, 2020
Interest payable A/c Dr. $112,000
To Bank A/c $112,000
(Being the Company has paid interest for the year 2019 on 1 Jan 2020)
b) Suppose if the Company redeems bond value of face value of $600,000
Face Value = $600,000
Call Price = ($600,000 X 103/100 ) = $618,000
Journal Entry-:
7% Bond A/c Dr. $600,000
Premium on redemption of payment A/c Dr. $18,000
To Bond holders A/c $618,000
(Being the Company has redeems bonds at a premium of 3%)
Premium on redemption will be charged to Statement of profit and loss account.
c) Journal Entry for recording of accrual interest for the year 2020
Interest -: 1,000,000 X 7%
=$70,000
Interest on Bond A/c Dr. $70,000
To Interest payable $70,000
(Being interest accrual has been provided for balance $1,000,000 of bonds for the year 2020)
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Prepare entries for bond interest and redemption 12. (LO 3) The following section is taken from...
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---------------------------------------------------------------------------------------------------------------------------------------------------------- Exercise 15-7 The following section is taken from Ohlman Corp.'s balance sheet at December 31,...
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CALCULATOR PRINTER VERSION BACK Exercise 15-07- The following section is taken from Sheridan Corp.'s balance sheet...
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E15-2 Prepare entries for issuance of bonds, and payment and accrual of bond interest. E15-2 Оп...
E15-2
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The following is taken from the Skysong, Inc. balance sheet. Interest is payable annually on January...
The following is taken from the Skysong, Inc. balance sheet.
Interest is payable annually on January 1. The bonds are
callable on any annual interest date. Skysong uses straight-line
amortization for any bond premium or discount. From December 31,
2019, the bonds will be outstanding for an additional 10 years (120
months).
can you help me answer the last part of the
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Prepare the journal entries to record the following: (a) The issuance of the bonds. (b) The...
Prepare the journal entries to record the following:
(a)
The issuance of the bonds.
(b)
The accrual of interest and the premium amortization on
December 31, 2020.
(c)
The payment of interest on January 1, 2021.
(d)
The redemption of the bonds at maturity, assuming interest for
the last interest period has been paid and recorded.
Exercise 15-15 a-d (Part Level Submission) Carla Vista Company issued $590,000, 6%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually...
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The following section is taken from Sheridan Corp.'s balance sheet at December 31, 2019 Current liabilities $ 134,550 Interest payable Long-term liabilities Bonds payable, 9%, due January 1, 2024 1,495,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. Your answer is correct. Journalize the payment of the bond interest on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles andExplanation Debit...
----------------------------------------------------------------------------------------------------------------------------------------------------------
Exercise 15-7 The following section is taken from Ohlman Corp.'s balance sheet at December 31, 2016 Current liabilitles Interest payable 94,500 Long-term liabilities Bonds payable, 6%, due January 1, 2021 1,575,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date Journalize the payment of the bond interest on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit...
Exercise 10-13 The following section is taken from Ohlman Corp.'s balance sheet at December 31, 2014. $ 73,170 Current liabilities Interest payable Long-term liabilities Bonds payable, 9%, due January 1, 2019 1,626,000 Bond interest is payable semiannually on January 1 and July 1. The bonds are callable on any interest date. Your answer is correct. Journalize the payment of the bond interest on January 1, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)...
CALCULATOR PRINTER VERSION BACK Exercise 15-07- The following section is taken from Sheridan Corp.'s balance sheet at December 31, 2019. Current abilities Interest payable $ 162,000 Kong-term liabilities Bonds payable, 9%, due January 1, 2024 1,800,000 Bond Interest is payable annually on January 1. The bonds are callable on any interest date. Journalize the payment of the bond Interest on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles...
E15-2
Prepare entries for issuance of bonds, and payment and accrual of bond interest. E15-2 Оп January 1, 2017, Klosterman Company issued $500,000, 10%, 10-year bon sat face value. Interest is payable annually on January 1. Instructions Prepare journal entries to record the following. (a) The issuance of the bonds (b) (LO 2) The accrual of interest on December 31, 2017. (c) The payment of interest on January 1, 2018
The following is taken from the Skysong, Inc. balance sheet.
Interest is payable annually on January 1. The bonds are
callable on any annual interest date. Skysong uses straight-line
amortization for any bond premium or discount. From December 31,
2019, the bonds will be outstanding for an additional 10 years (120
months).
can you help me answer the last part of the
question?
The following is taken from the Skysong, Inc. balance sheet. Skysong, Inc. Balance Sheet (partial) December 31,...
Prepare the journal entries to record the following:
(a)
The issuance of the bonds.
(b)
The accrual of interest and the premium amortization on
December 31, 2020.
(c)
The payment of interest on January 1, 2021.
(d)
The redemption of the bonds at maturity, assuming interest for
the last interest period has been paid and recorded.
Exercise 15-15 a-d (Part Level Submission) Carla Vista Company issued $590,000, 6%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually...
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