On January 1, 2020, Wildhorse Corporation issued 13% bonds with a par value of $5,140,000, due...
On January 1, 2020, Wildhorse Corporation issued 13% bonds with a par value of $5,140,000, due in 10 years. The company incurred $210,000 in costs associated with the issuance of the bonds, which were capitalized. The bonds were issued at 101, and paid interest on January 1 and July 1 each year. Wildhorse’s year-end was March 31. The company followed ASPE and chose to use the straight-line method of amortization for bond discounts or premiums.
Prepare the journal entry to record the issue of the bonds.
(Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for
the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
Jan. 1 |
|||
Prepare the entries required on March 31, 2020 to accrue
interest and record any amortization required. (Credit
account titles are automatically indented when the amount is
entered. Do not indent manually.)
|
Account Titles and Explanation |
Debit |
Credit |
Homework Answers
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On January 1, 2020, Wildhorse Corporation issued 13% bonds with
a par value of $5,140,000, due...
On January 1, 2020, Wildhorse Corporation issued 11% bonds with a par value of $5,170,000, due...
On January 1, 2020, Wildhorse Corporation issued 11% bonds with
a par value of $5,170,000, due in 10 years. The company incurred
$195,000 in costs associated with the issuance of the bonds, which
were capitalized. The bonds were issued at 102, and paid interest
on January 1 and July 1 each year. Wildhorse’s year-end was March
31. The company followed ASPE and chose to use the straight-line
method of amortization for bond discounts or premiums.
Current Attempt in Progress On...
On January 1, 2020, Sarasota Corporation issued 12% bonds with a par value of $3,940,000, due...
On January 1, 2020, Sarasota Corporation issued 12% bonds with a par value of $3,940,000, due in 10 years. The company incurred $172,000 in costs associated with the issuance of the bonds, which were capitalized. The bonds were issued at 101, and paid interest on January 1 and July 1 each year. Sarasota's year-end was March 31. The company followed ASPE and chose to use the straight-line method of amortization for bond discounts or premiums. Your answer is correct. Prepare...
On January 1, 2019, Wildhorse Co. issued $2,360,000 face value, 7%, 10-year bonds at $2,201,642. This...
On January 1, 2019, Wildhorse Co. issued $2,360,000 face value,
7%, 10-year bonds at $2,201,642. This price resulted in an
effective-interest rate of 8% on the bonds. Wildhorse uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on January 1.
Prepare the journal entry to record the issuance of the bonds
on January 1, 2019. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation...
Brief Exercise 15-03 a-c Cullumber Corporation issued 3,300, 7%, 5-year, $1,000 bonds dated January 1, 2020,...
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...
On January 1, Wildhorse Co. issued $366,000, 7%, 10-year bonds at face value. Interest is payable...
On January 1, Wildhorse Co. issued $366,000, 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 Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent...
Sarasota Limited issued $380,000 of 9% bonds on January 1, 2020. The bonds are due on...
Sarasota Limited issued $380,000 of 9% bonds on January 1, 2020. The bonds are due on January 1, 2025, with interest payable each July 1 and January 1. The bonds are issued at 97. Sarasota Limited follows ASPE and records the amortization using the straight-line method. Prepare the journal entry related to the bonds for January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"...
On January 1, 2020, Wildhorse Ltd. issued 870 5-year, 10% convertible bonds at par of $1,000,...
On January 1, 2020, Wildhorse Ltd. issued 870 5-year, 10% convertible bonds at par of $1,000, with interest payable each December 31. Each bond is convertible into 100 common shares, and the current fair value of each common share is $6. Similar straight bonds carry an interest rate of 12%. Calculate the PV of the debt component by itself. Calculate using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel function PV. (For calculation...
On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year bonds at face value. Interest is...
On January 1, 2020, Sandhill Company issued $310,500, 9%, 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
Prepare the journal entry to record the accrual of interest on
December 31, 2020. (Credit account titles are
automatically indented when amount is entered....
Wildhorse Company issued $376,000 of 9%, 10-year bonds on January 1, 2021, at face value. Interest...
Wildhorse Company issued $376,000 of 9%, 10-year bonds on January 1, 2021, at face value. Interest is payable annually on January 1, 2022. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2021 (To record...
Question 2 Grouper Limited issued $393,000 of 8% bonds on January 1, 2020. The bonds are...
Question 2 Grouper Limited issued $393,000 of 8% bonds on January 1, 2020. The bonds are due on January 1, 2025, with interest payable each July 1 and January 1. The bonds are issued at 98. Grouper Limited follows ASPE and records the amortization using the straight-line method. v (a) V Your answer is correct. Prepare the journal entry related to the bonds for January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent...
On January 1, 2020, Wildhorse Corporation issued 11% bonds with
a par value of $5,170,000, due in 10 years. The company incurred
$195,000 in costs associated with the issuance of the bonds, which
were capitalized. The bonds were issued at 102, and paid interest
on January 1 and July 1 each year. Wildhorse’s year-end was March
31. The company followed ASPE and chose to use the straight-line
method of amortization for bond discounts or premiums.
Current Attempt in Progress On...
On January 1, 2020, Sarasota Corporation issued 12% bonds with a par value of $3,940,000, due in 10 years. The company incurred $172,000 in costs associated with the issuance of the bonds, which were capitalized. The bonds were issued at 101, and paid interest on January 1 and July 1 each year. Sarasota's year-end was March 31. The company followed ASPE and chose to use the straight-line method of amortization for bond discounts or premiums. Your answer is correct. Prepare...
On January 1, 2019, Wildhorse Co. issued $2,360,000 face value,
7%, 10-year bonds at $2,201,642. This price resulted in an
effective-interest rate of 8% on the bonds. Wildhorse uses the
effective-interest method to amortize bond premium or discount. The
bonds pay annual interest on January 1.
Prepare the journal entry to record the issuance of the bonds
on January 1, 2019. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation...
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...
On January 1, Wildhorse Co. issued $366,000, 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 Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent...
On January 1, 2020, Sandhill Company issued $310,500, 9%, 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
Prepare the journal entry to record the accrual of interest on
December 31, 2020. (Credit account titles are
automatically indented when amount is entered....
Question 2 Grouper Limited issued $393,000 of 8% bonds on January 1, 2020. The bonds are due on January 1, 2025, with interest payable each July 1 and January 1. The bonds are issued at 98. Grouper Limited follows ASPE and records the amortization using the straight-line method. v (a) V Your answer is correct. Prepare the journal entry related to the bonds for January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent...
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