Concord Corporation sold $2,950,000, 9%, 5-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. Concord Corporation uses the straight-line method to amortize bond premium or discount.
Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2022, assuming that the bonds sold at 103. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
Jan. 1 |
enter an account title for the journal entry on January 1 |
enter a debit amount |
enter a credit amount |
enter an account title for the journal entry on January 1 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on January 1 |
enter a debit amount |
enter a credit amount |
|
Dec. 31 |
enter an account title for the journal entry on December 31 |
enter a debit amount |
enter a credit amount |
enter an account title for the journal entry on December 31 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on December 31 |
enter a debit amount |
enter a credit amount |
Prepare journal entries to record the issuance of the bonds and bond interest expense for 2022, assuming that the bonds sold at 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
Jan. 1 |
enter an account title for the journal entry on January 1 |
enter a debit amount |
enter a credit amount |
enter an account title for the journal entry on January 1 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on January 1 |
enter a debit amount |
enter a credit amount |
|
Dec. 31 |
enter an account title for the journal entry on December 31 |
enter a debit amount |
enter a credit amount |
enter an account title for the journal entry on December 31 |
enter a debit amount |
enter a credit amount |
|
enter an account title for the journal entry on December 31 |
enter a debit amount |
enter a credit amount |
(1) Show the balance sheet presentation for the bond issue at December 31, 2022, using the 103 selling price.
CONCORD CORPORATION |
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select an opening name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
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enter a balance sheet item |
$enter a dollar amount |
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select an opening name for subsection two Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
|||||
enter a balance sheet item |
$enter a dollar amount |
||||
select between addition and deduction AddLess: enter a balance sheet item |
enter a dollar amount |
enter a total of the two previous amounts |
(2) Show the balance sheet presentation for the bond issue at December 31, 2022, using the 96 selling price.
CONCORD CORPORATION |
|||||
---|---|---|---|---|---|
select an opening name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
|||||
enter a balance sheet item |
$enter a dollar amount |
||||
select an opening name for subsection two Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity |
|||||
enter a balance sheet item |
$enter a dollar amount |
||||
select between addition and deduction AddLess: enter a balance sheet item |
enter a dollar amount |
At 103: | ||||
Debit | Credit | |||
Jan 1 | Cash | 3038500 | =2950000*1.03 | |
Bonds Payable | 2950000 | |||
Premium on Bonds Payable | 88500 | |||
Dec 31 | Interest expense | 247800 | ||
Premium on Bonds Payable | 17700 | =88500/5 | ||
Interest payable | 265500 | =2950000*9% | ||
At 96: | ||||
Debit | Credit | |||
Jan 1 | Cash | 2832000 | =2950000*0.96 | |
Discount on Bonds Payable | 118000 | |||
Bonds Payable | 2950000 | |||
Dec 31 | Interest expense | 289100 | ||
Discount on Bonds Payable | 23600 | =118000/5 | ||
Interest payable | 265500 | =2950000*9% | ||
1 | ||||
CONCORD CORPORATION | ||||
Balance Sheet (Partial) | ||||
December 31, 2022 | ||||
Current Liabilities | ||||
Interest payable | 265500 | |||
Long term liabilities | ||||
Bonds payable | 2950000 | |||
Add: Premium on Bonds payable | 70800 | 3020800 | =88500-17700 | |
2 | ||||
CONCORD CORPORATION | ||||
Balance Sheet (Partial) | ||||
December 31, 2022 | ||||
Current Liabilities | ||||
Interest payable | 265500 | |||
Long term liabilities | ||||
Bonds payable | 2950000 | |||
Less: Discount on Bonds payable | 94400 | 2855600 | =118000-23600 |
Concord Corporation sold $2,950,000, 9%, 5-year bonds on January 1, 2022. The bonds were dated January...
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