Date | Account Titles | Debit | Credit | |
Jun-30 | Cash | $ 4,10,200 | =412000-1800 | |
2021 | Debt Issue Costs | $ 1,800 | ||
Discount on Bonds Payable | $ 18,000 | =430000-412000 | ||
Bonds Payable | $ 4,30,000 | |||
Dec-31 | Interest Expense | $ 26,790 | =25800+900+90 | |
2021 | Discount on Bonds Payable | $ 900 | =18000/20 | |
Debt Issue Costs | $ 90 | =1800/20 | ||
Cash | $ 25,800 | =430000*12%*6/12 | ||
Jun-30 | Interest Expense | $ 26,790 | ||
2021 | Discount on Bonds Payable | $ 900 | ||
Debt Issue Costs | $ 90 | |||
Cash | $ 25,800 | |||
Jul-01 | Bonds Payable | $ 4,30,000 | ||
2022 | Loss on redemption of bonds | $ 2,820 | =415000+16200+1620-430000 | |
Discount on Bonds Payable | $ 16,200 | =18000-900-900 | ||
Debt Issue Costs | $ 1,620 | =1800-90-90 | ||
Cash | $ 4,15,000 |
Chapter 14 (with some problems from Cha... Help Save & Exit Submit Check my work Cupola...
Cupola Fan Corporation issued 10%, $450,000, 10-year bonds for $430,000 on June 30, 2021. Debt issue costs were $2,000. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $435,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entry to record the issuance of...
Cupola Fan Corporation issued 10%, $450,000, 10-year bonds for $430,000 on June 30, 2021. Debt issue costs were $2,000. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $435,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entry to record the issuance of...
Cupola Fan Corporation issued 10%, $420,000, 10-year bonds for $403,000 on June 30, 2021. Debt issue costs were $1,700. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $410,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entry to record the issuance of...
Cupola Fan Corporation issued 8%, $410,000, 10-year bonds for $394,000 on June 30, 2021. Debt issue costs were $1,600. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $405,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entry to record the issuance of...
Cupola Fan Corporation issued 12%, $470,000, 10-year bonds for $448,000 on June 30, 2021. Debt issue costs were $2,200. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $458,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of...
Cupola Fan Corporation issued 12%, $560,000, 10-year bonds for $529,000 on June 30, 2021. Debt issue costs were $3,100. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $539,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of...
Cupola Fan Corporation issued 10%, $400,000, 10-year bonds for $385,000 on June 30, 2021. Debt issue costs were $1,500. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $395,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs.Prepare the journal entries to record the (a) issuance of the bonds, (b)the payment...
Cupola Fan Corporation issued 12%, $560,000, 10-year bonds for $529,000 on June 30, 2021. Debt issue costs were $3,100. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $539,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entries to record the issuance of...
Problem 14-16 Debt issue costs; issuance; expensing; early extinguishment; straight-line amortization [LO14-2, 14-5] Cupola Fan Corporation issued 896, $560,000, 10-year bonds for $534,000 on June 30, 2018. Debt issue costs were $3,100. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2019), the corporation exercised its call privilege and retired the bonds for $540,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs....
Cupola Fan Corporation issued 10%, $540,000, 10-year bonds for $516,000 on June 30, 2018. Debt issue costs were $2,900. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2019), the corporation exercised its call privilege and retired the bonds for $520,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entry to record the issuance of...