Record the issuance of bonds with a face value of $800,000 for $735,000.
Simko Company issued $800,000, 10-year, 6 percent bonds on January 1, 2018. The bonds were issued for $735,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record (a) the bond issuance on January 1, 2018, and (b) the payment of interest on December 31, 2018.
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Record the issuance of bonds with a face value of $800,000 for $735,000.
Simko Company issued $720,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued...
Simko Company issued $720,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued for $640,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record (a) the bond issuance on January 1, 2018, and (b) the payment of interest on December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the issuance of bonds with a face value of $720,000...
Strathern Corporation issued ten-year term bonds dated January 1, 2017, with a face value of $800,000....
Strathern Corporation issued ten-year term bonds dated January 1, 2017, with a face value of $800,000. The face interest rate is 10 percent, and interest is payable annually December 31. The bonds were issued for $708,400 to yield an effective annual rate of 12 percent. Use the effective interest method of amortization. Round answers to the nearest dollar. a. Prepare entries in journal form without explanations to record the bond issue on January 1, 2017, and the payments of interest on January,...
On January 1, 2018, Loop Raceway issued 620 bonds, each with a face value of $1,000,...
On January 1, 2018, Loop Raceway issued 620 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $604,002. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare...
Prepare the journal entries to record the following: (a) The issuance of the bonds. (b) The...
Prepare the journal entries to record the following:
(a)
The issuance of the bonds.
(b)
The accrual of interest and the premium amortization on
December 31, 2020.
(c)
The payment of interest on January 1, 2021.
(d)
The redemption of the bonds at maturity, assuming interest for
the last interest period has been paid and recorded.
Exercise 15-15 a-d (Part Level Submission) Carla Vista Company issued $590,000, 6%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually...
On January 1, 2018, Loop Raceway issued 580 bonds, each with a face value of $1,000,...
On January 1, 2018, Loop Raceway issued 580 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $564,485. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond...
question 14-4 P10 LO 14.3 face value b Umption of Effective Interest Rate On June 30,...
question 14-4
P10 LO 14.3 face value b Umption of Effective Interest Rate On June 30, 2017 face value bonds for S761,150.96. On December 31, 2019, Gaston $734,645.28. The bonds were dated January 1, 2019, pay 30, and are due December 31, 2026. E UF the bonds and debt issuance costs Kate On June 30, 2019, Gaston Corporation sold $800,000 of 11% er 31, 2019, Gaston sold $700,000 of this same bond issue for nuary 1, 2019, pay interest semiannually...
1 Record the issuance of 520 bonds at face value of $1,000 each for $506,090. 2...
1
Record the issuance of 520 bonds at face value of $1,000 each
for $506,090.
2
Record the interest payment on December 31, 2018.
3
Record the interest payment on December 31, 2019.
4
Record the interest and face value payment on December 31,
2020.
5
Record the retirement of the bonds at a quoted price of 98,
assuming the bonds are retired on January 1, 2020.
General journal entry options:
No Journal Entry Required
Accounts Payable
Accounts Receivable
Accumulated...
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate...
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 5.50 percent, so the total proceeds from the bond issue were $101,347. Methodical uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare...
Check my work On January 1, 2018. Loop Raceway issued 640 bonds, each with a face...
Check my work On January 1, 2018. Loop Raceway issued 640 bonds, each with a face value of $1000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $623.205. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year....
On January 31, 2018, DurkinDurkin Logistics, Inc., issued five-year, 5% bonds payable with a face value of $5,000,00...
On January 31, 2018, DurkinDurkin Logistics, Inc., issued five-year, 5% bonds payable with a face value of $5,000,000. The bonds were issued at 96 and pay interest on January 31 and July 31. DurkinDurkin Logistics amortizes bond discounts using the straight-line method.Read the requirement a. Record the issuance of the bond payable on January 31, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Jan 31 b. Record the payment...
Prepare the journal entries to record the following:
(a)
The issuance of the bonds.
(b)
The accrual of interest and the premium amortization on
December 31, 2020.
(c)
The payment of interest on January 1, 2021.
(d)
The redemption of the bonds at maturity, assuming interest for
the last interest period has been paid and recorded.
Exercise 15-15 a-d (Part Level Submission) Carla Vista Company issued $590,000, 6%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually...
On January 1, 2018, Loop Raceway issued 580 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $564,485. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond...
question 14-4
P10 LO 14.3 face value b Umption of Effective Interest Rate On June 30, 2017 face value bonds for S761,150.96. On December 31, 2019, Gaston $734,645.28. The bonds were dated January 1, 2019, pay 30, and are due December 31, 2026. E UF the bonds and debt issuance costs Kate On June 30, 2019, Gaston Corporation sold $800,000 of 11% er 31, 2019, Gaston sold $700,000 of this same bond issue for nuary 1, 2019, pay interest semiannually...
1
Record the issuance of 520 bonds at face value of $1,000 each
for $506,090.
2
Record the interest payment on December 31, 2018.
3
Record the interest payment on December 31, 2019.
4
Record the interest and face value payment on December 31,
2020.
5
Record the retirement of the bonds at a quoted price of 98,
assuming the bonds are retired on January 1, 2020.
General journal entry options:
No Journal Entry Required
Accounts Payable
Accounts Receivable
Accumulated...
Check my work On January 1, 2018. Loop Raceway issued 640 bonds, each with a face value of $1000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $623.205. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year....
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