Answer
--Journal entries
Date | Accounts title | Debit | Credit |
01-Jan-20 | Cash ($520000 x 103/100) | $535,600 | |
Premium on Bonds Payable | $15,600 | ||
Bonds payable | $520,000 | ||
(to record issuance) | |||
31-Dec-20 | Interest Expense | $30,420 | |
Premium on Bonds Payable ($15600 / 20 year) | $780 | ||
Interest Payable ($520000 x 6%) | $31,200 | ||
(to record first interest accrual) | |||
01-Jan-21 | Interest Payable | $31,200 | |
Cash | $31,200 | ||
(to record payment of interest) | |||
01-Jan-40 | Bonds Payable | $520,000 | |
Cash | $520,000 | ||
(to record redemption) |
Exercise 15-15- Crane Company issued $520,000,6%, 20-year bends on January 1, 2020, 103. Interest is payable...
Exercise 15-15 a-d Ivanhoe Company issued $430,000, 9%, 20-year bonds on January 1, 2020, at 102. Interest is payable annually on January 1. Ivanhoe uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash 438600 Bonds Payable 430000 Premium on Bonds Payable 8600 SHOW LIST OF...
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On January 1,Crane Company issued $372,000, 7% , 10-year bonds at face value. Interest is payable annually on January 1 Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 eTextbook and Media List of Accounts Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when...
Ivanhoe Company issued $430,000, 9%, 20-year bonds on January 1, 2020, at 102. Interest is payable annually on January 1. Ivanhoe uses straight-line amortization for bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020
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Brief Exercise 15-03 a-c Cullumber Corporation issued 3,300, 7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Janaury 1, 2020 LINK TO TEXT Prepare the adjusting journal entry on December 31, 2020, to record interest expense. (Credit...
CALCULATOR PRINTER VERS Exercise 15-03a-c On January 1, 2020, Crane Company issued $348,000, 5%, 5-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the accrual of interest on December...