Question

Concord Corporation sold $2,950,000, 9%, 5-year bonds on January 1, 2022. The bonds were dated January...

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
Balance Sheet (Partial)

choose the accounting period                                                                      December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022

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

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
Balance Sheet (Partial)

choose the accounting period                                                                      December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022

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

0 0
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Answer #1
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
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