Question

FINANCIAL ACCOUNTING II months = 7x150 William D. Kidd, Inc. authorized $300,000 pf 6% callable bonds on June 1, 2011 These securities would pay interest annually on each May 31", and they are scheduled to mature on May 31, 2020. On January 2, 2015, Kidd issued all of the bonds in exchange for a building with a fair value of $274,000. The debt was collateralized by machinery and equipment with a market value of $412,000. The bond investors paid all accrued interest in cash. On August 31, 2017, Kidd called the bonds and paid the bondholders $1,100 for each $1,000) bond outstanding. Kidd also paid all interest payable as of that date. Provide the journal entries relating to the bonds that Kidd would make on June 1, 2011, January 2, 2015, and August 31, 2017

Please use accounting paper or clear debit and credit side so I can understand the transaction thank you.

Answer 1

Anguer Entry as on of June 2011... for Authorisation of bonds. in the booke of Accounti. There will be Ho Entry Entry au on 2 Jan 2015 Building the 1084 on issue of bondke te Dr 2794,000 Dr.20,000 1. To ponds the #3,00,000 for acquiring Machinery ) ( being bands issued lote for making colletaral of Machinery here collll be No estoy . Intrest paid as on 31/May/2015 Noref days befeseen : Dable of Castro: 02/Jan/2009 Date of foolexest : 311 88704/2015 - payment 360 5.149 dags. .Iolelest: 3,60,000 x 64* v .-9348 (mpprox) Interest (tap] -Ni or 9348 - TO Rank/ Cash nk . 7348

Elstoy ar on 31 Muguet (2017 $3,00,000 No. of bonds: I = - $1,000 a. 300 bonds. Amcent Repayable. 300 * $1100 - $3,30,000 Istvest Aevued from 31 myl 2017 to aufuguet op = 3,00,000 x 6%.*yout = 4537 (Appren). Glacevalne) t Bonds No Do & 3,00,000. Interest Al Dr.¢ 4537. premium on filmploye Dr. $. 30000, To frank / Cash AK 4.3,346537 (beicige Amount paid on Realemption) Note: It ware assumed Interest way pould every year aron almay, tlene, Interest was considered only for (but 3 months for the year 2017 .