Homework Answers
Par value of Investment = $100,000
Price of investment = $104,000
Journal entry is
Debt Investment account....Debit $104,000
Cash account...................Credit $104,000
Option 'B' is correct
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13. On August 1, 2020, the McCellen Company acquired $100.000,8% bonds of Lankford Co. for $104,000....
On January 1, 2020, Novak Company purchased 13% bonds, having a maturity value of $321,000 for...
On January 1, 2020, Novak Company purchased 13% bonds, having a maturity value of $321,000 for $344,727.36. The bonds provide the bondholders with a 11% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Novak Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for $637,838, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sheridan Company allocates interest and unamortized discount or premium on the effective interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $350,000 for...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $350,000 for $376,535, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sheridan Company allocates interest and unamortized discount or premium on the effective- interest basis. Your answer is correct. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places,...
On December 31, 2018, Marsh Company held Xenon Company bonds in its portfolio of available-for-sale securities....
On December 31, 2018, Marsh Company held Xenon Company bonds in
its portfolio of available-for-sale securities. The bonds have a
par value of $14,000, carry a 10% annual interest rate, mature in
2025, and had originally been purchased at par. The market value of
the bonds at December 31, 2018 was $12,000. The December 31, 2018,
balance sheet showed the following:
Marsh Company
Partial Balance Sheet
December 31, 2018
1
Assets
2
Investment in Available-for-Sale Securities
$14,000.00
3
Less: Allowance...
Presented below are selected transactions on the books of Whispering Corporation. May 1, 2020 Bonds payable...
Presented below are selected transactions on the books of
Whispering Corporation.
May 1, 2020
Bonds payable with a par value of $937,200, which are dated
January 1, 2020, are sold at 105 plus accrued interest. They are
coupon bonds, bear interest at 12% (payable annually at January 1),
and mature January 1, 2030. (Use interest expense account for
accrued interest.)
Dec. 31
Adjusting entries are made to record the accrued interest on
the bonds, and the amortization of the proper...
The Waterway Company issued $360,000 of 7% bonds on January 1, 2020. The bonds are due...
The Waterway Company issued $360,000 of 7% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 103. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Waterway Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically...
On January 1, 2020, Kingbird Company purchased $420,000, 10% bonds of Aguirre Co. for $389,086. The...
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On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for $637,838, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sheridan Company allocates interest and unamortized discount or premium on the effective-interest basis. ✓ Your answer is correct. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places,...
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On January 1, 2020, Concord Company purchased 10% bonds having a maturity value of $220,000, for $237,567.22. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Concord Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare a bond amortization schedule
Celine Dion Company issued $600,000 of 10%, 20-year bonds onJanuary 1, 2020, at 102. Interest...
Celine Dion Company issued $600,000 of 10%, 20-year bonds on
January 1, 2020, at 102. Interest is payable semiannually on July 1
and January 1. Celine Dion Company uses the effective-interest
method of amortization for bond premium or discount. Assume an
effective yield of 9.7705%.Prepare the journal entries to record the following.(Round intermediate calculations to 6 decimal places,
e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If
no entry is required, select "No Entry" for the account...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for $637,838, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sheridan Company allocates interest and unamortized discount or premium on the effective interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $350,000 for $376,535, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sheridan Company allocates interest and unamortized discount or premium on the effective- interest basis. Your answer is correct. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places,...
On December 31, 2018, Marsh Company held Xenon Company bonds in
its portfolio of available-for-sale securities. The bonds have a
par value of $14,000, carry a 10% annual interest rate, mature in
2025, and had originally been purchased at par. The market value of
the bonds at December 31, 2018 was $12,000. The December 31, 2018,
balance sheet showed the following:
Marsh Company
Partial Balance Sheet
December 31, 2018
1
Assets
2
Investment in Available-for-Sale Securities
$14,000.00
3
Less: Allowance...
Presented below are selected transactions on the books of
Whispering Corporation.
May 1, 2020
Bonds payable with a par value of $937,200, which are dated
January 1, 2020, are sold at 105 plus accrued interest. They are
coupon bonds, bear interest at 12% (payable annually at January 1),
and mature January 1, 2030. (Use interest expense account for
accrued interest.)
Dec. 31
Adjusting entries are made to record the accrued interest on
the bonds, and the amortization of the proper...
The Waterway Company issued $360,000 of 7% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 103. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Waterway Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for $637,838, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sheridan Company allocates interest and unamortized discount or premium on the effective-interest basis. ✓ Your answer is correct. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places,...
Celine Dion Company issued $600,000 of 10%, 20-year bonds on
January 1, 2020, at 102. Interest is payable semiannually on July 1
and January 1. Celine Dion Company uses the effective-interest
method of amortization for bond premium or discount. Assume an
effective yield of 9.7705%.Prepare the journal entries to record the following.(Round intermediate calculations to 6 decimal places,
e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If
no entry is required, select "No Entry" for the account...
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