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 accounts for the bond using the shortcut approach. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.)
Homework Answers
| Journal entries | |||||
| s.no | Particulars | debit | credit | ||
| 1) | cash | 330361 | |||
| premium on bond payable | 55361 | ||||
| bond payable | 275000 | ||||
| (to record issue of bond) | |||||
| 2) | interest expenses (330361*8%) | 26429 | |||
| premium on bond payable | 3821 | ||||
| cash (275000*11%) | 30250 | ||||
| (to record interest payment ) | |||||
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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...
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...
Grocery Corporation received $300,409 for 11.50 percent bonds issued on January 1, 2018, at a market...
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Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market...
Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market interest rate of 5.50 percent. The bonds had a total face value of $258,000, 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...
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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...
Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market interest rate of 5.50 percent. The bonds had a total face value of $258,000, 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...
Grocery Corporation received $330,510 for 10.00 percent bonds issued on January 1, 2018, at a market interest rate of 7.00 percent. The bonds had a total face value of $273,000, stated that interest would be paid each December 31, and stated that they mature in 10 years Required: Prepare the following table for each account by indicating (o) whether it is reported on the Balance Sheet (B/S) or Income Statement (1/S): () the dollar amount by which the account increases,...
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