Homework Answers
Answer -
Step - (1) - Information Given -
Swanson Corporation issued $7700000 of 20 year, 8 percent bonds on April 1, 2013, at 102.
Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2033.
Swanson's financial year ends on December 31.
.
Step - (2) -
Journal of Swanson Corporation
| Date | General Journal | Debit ($) | Credit ($) | |
| a. | April 1, 2013 |
Cash [$7700000*102%] Premium on Bonds Payable[$7700000*2%] Bonds Payable (To record issue of bond at a premium) |
7854000 - - |
- 154000 7700000 |
| b. | September 30, 2013 |
Interest Expense [balancing figure] Premium on Bonds Payable [$154000/40 periods] Cash [($7700000*8%)*6/12] (To record period interest payment and premium amortization) |
304150 3850 - |
- - 308000 |
| c. | March 31, 2033 |
Interest expense [balancing figure] Premium on bonds payable[($154000/40)/2] Interest payable [($7700000*8%)*3/12] Cash [($7700000*8%)*6/12] (To record period interest payment and premium amortization) |
152075 1925 154000 |
- - - 308000 |
| March 31, 2033 |
Bonds payable Cash (To record payment of bond at maturity) |
7700000 - |
- 7700000 |
|
Add Answer to:
Swanson Corporation issued $7,700,000 of 20 year, 8 percent bonds on April 1, 2013, at 102....
Swanson Corporation issued $7,100,000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest...
Swanson Corporation issued $7,100,000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2033. Swanson's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at April 1, 2013, to record the issuance of the bonds. (Omit the "$" sign in your response.) General Journal Debit Credit Date...
Swanson Corporation issued $7,400,000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest...
Swanson Corporation issued $7,400,000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2033. Swanson's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at April 1, 2013, to record the issuance of the bonds. (Omit the "S" sign in your response.) Date General Journal Debit Credit...
Mellilo Corporation issued $4,800,000 of 20-year, 9.5 percent bonds on July 1, 2013, at 98. Interest...
Mellilo Corporation issued $4,800,000 of 20-year, 9.5 percent bonds on July 1, 2013, at 98. Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2033. Mellilo's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at July 1, 2013, to record the issuance of the bonds. (Omit the "$" sign in your response.) Debit Credit Date July 1,...
Mellilo Corporation issued 55,700,000 of 20-year, 9.5 percent bonds on July 1, 2013, at 98 Interest...
Mellilo Corporation issued 55,700,000 of 20-year, 9.5 percent bonds on July 1, 2013, at 98 Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2033. Mellilo's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at July 1, 2013, to record the issuance of the bonds. (Omit the S sign in usponse.) Debit Credit Date July 1, 2013...
Mellilo Corporation issued $6,000,000 of 20-year, 9.5 percent bonds on July 1, 2013, at 98. Interest...
Mellilo Corporation issued $6,000,000 of 20-year, 9.5 percent bonds on July 1, 2013, at 98. Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2033. Mellilo's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at July 1, 2013, to record the issuance of the bonds. (Omit the "$" sign in your response.) Date General Journal...
1 2 On March 31, 2020 Forrester Company issued $400,000, 8%, 5 year bonds at face...
1
2
On March 31, 2020 Forrester Company issued $400,000, 8%, 5 year bonds at face value. Interest is payable on September 30 and March 31 of each year. Prepare the entry for March 31, 2020: Prepare the entry to pay interest on September 30, 2020: Prepare the entry to accrue interest on December 31, 2020: Adcock Company issued $600,000, 9% 20 years bonds at 103 on April 30, 2020. Interest is payable on October 31 and April 30 of...
The Gorman Group issued $840,000 of 11% bonds on June 30, 2013, for $912,072. The bonds...
The Gorman Group issued $840,000 of 11% bonds on June 30, 2013,
for $912,072. The bonds were dated on June 30 and mature on June
30, 2033 (20 years). The market yield for bonds of similar risk and
maturity is 10%. Interest is paid semiannually on December 31 and
June 30.
Required:
Complete the below table to record the company's journal entry.
(Enter interest rate to 1 decimal place.)
1.
Prepare the journal entry to record their issuance by...
Assume that on April 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two year...
Assume that on April 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two year bonds with a $100.000 par value. The bonds pay interest semiannually on March 31 and September 30. Jerome intends to hold the bonds until they mature Complete the necessary journal entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns View transaction list Journal entry worksheet Assume that on April 1, Jerome, Inc., paid...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $275,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium Required 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
On December 31, 2018, Squidward Corporation issued $500,000, 8 % , 20-year bonds for $414,210 cash...
On December 31, 2018, Squidward Corporation issued $500,000, 8 % , 20-year bonds for $414,210 cash when the market rate of interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Squidward uses the effective interest method of amortization to amortize and premium or discount. Give the general journal entries required on (1) December 31, 2018 to record the issue of the bonds and (2) June 30, 2018, the first interest payment date. Make your entries...
Swanson Corporation issued $7,100,000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2033. Swanson's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at April 1, 2013, to record the issuance of the bonds. (Omit the "$" sign in your response.) General Journal Debit Credit Date...
Swanson Corporation issued $7,400,000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2033. Swanson's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at April 1, 2013, to record the issuance of the bonds. (Omit the "S" sign in your response.) Date General Journal Debit Credit...
Mellilo Corporation issued $4,800,000 of 20-year, 9.5 percent bonds on July 1, 2013, at 98. Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2033. Mellilo's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at July 1, 2013, to record the issuance of the bonds. (Omit the "$" sign in your response.) Debit Credit Date July 1,...
Mellilo Corporation issued 55,700,000 of 20-year, 9.5 percent bonds on July 1, 2013, at 98 Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2033. Mellilo's financial year ends on December 31. Prepare the following journal entries: a. Prepare the journal entry at July 1, 2013, to record the issuance of the bonds. (Omit the S sign in usponse.) Debit Credit Date July 1, 2013...
1
2
On March 31, 2020 Forrester Company issued $400,000, 8%, 5 year bonds at face value. Interest is payable on September 30 and March 31 of each year. Prepare the entry for March 31, 2020: Prepare the entry to pay interest on September 30, 2020: Prepare the entry to accrue interest on December 31, 2020: Adcock Company issued $600,000, 9% 20 years bonds at 103 on April 30, 2020. Interest is payable on October 31 and April 30 of...
The Gorman Group issued $840,000 of 11% bonds on June 30, 2013,
for $912,072. The bonds were dated on June 30 and mature on June
30, 2033 (20 years). The market yield for bonds of similar risk and
maturity is 10%. Interest is paid semiannually on December 31 and
June 30.
Required:
Complete the below table to record the company's journal entry.
(Enter interest rate to 1 decimal place.)
1.
Prepare the journal entry to record their issuance by...
Assume that on April 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two year bonds with a $100.000 par value. The bonds pay interest semiannually on March 31 and September 30. Jerome intends to hold the bonds until they mature Complete the necessary journal entry by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns View transaction list Journal entry worksheet Assume that on April 1, Jerome, Inc., paid...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $275,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium Required 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
On December 31, 2018, Squidward Corporation issued $500,000, 8 % , 20-year bonds for $414,210 cash when the market rate of interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Squidward uses the effective interest method of amortization to amortize and premium or discount. Give the general journal entries required on (1) December 31, 2018 to record the issue of the bonds and (2) June 30, 2018, the first interest payment date. Make your entries...
Most questions answered within 3 hours.
-
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 42 minutes ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 48 minutes ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 1 hour ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 2 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 1 hour ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 2 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 2 hours ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 3 hours ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 3 hours ago -
Two concentric current loops lie in the same plane. The smaller
loop has a radius of...
asked 3 hours ago -
1)Which of the following is an
important difference between qualified and nonqualified retirement
plans?
a. Qualified...
asked 4 hours ago -
What's the streaming business's problem on the
horizon?
asked 4 hours ago