E10.17 (LO 3), AP Kale Company issued $350,000 of 8%, 20-year bonds on January 1, 2022,...
E10.17 (LO 3), AP Kale Company issued $350,000 of 8%, 20-year bonds on January 1, 2022, at face value. Interest is payable annually on January 1.
Prepare journal entries to record issuance of bonds, payment of interest, and redemption at maturity.
Instructions
Prepare the journal entries to record the following events.
a. The issuance of the bonds.
b. The accrual of interest on December 31, 2022.
c. The payment of interest on January 1, 2023.
d. The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
type your answer please don't use excel spreadsheet
Homework Answers
| No. | Date | Accounts | Debit | Credit |
| a. | January 1, 2022 | Cash | $350,000 | |
| Bonds Payable | $350,000 | |||
| b. | December 31, 2022 | Interest expense ($350,000 x 8% x 1) | $28,000 | |
| Interest payable | $28,000 | |||
| c. | January 1, 2023 | Interest payable | $28,000 | |
| Cash | $28,000 | |||
| d. | January 1, 2032 | Bonds Payable | $350,000 | |
| Cash | $350,000 |
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E10.17 (LO
3), AP Kale Company issued
$350,000 of 8%, 20-year bonds on January 1, 2022,...
for issuance E10.12 (LO 3), AP On August 1, 2022, Gonzaga Corporation issued $600,000, 7 %...
for issuance E10.12 (LO 3), AP On August 1, 2022, Gonzaga Corporation issued $600,000, 7 % , 10- year bonds at face value. Interest is payable annually on August 1. Gonzaga's year-end is December 31. nd accrual Instructions Prepare journal entries to record the following events. a. The issuance of the bonds. b. The accrual of interest on December 31, 2022. c. The payment of interest on August 1, 2023.
Exercise 10-17 Sandhill Co. issued $310,000 of 8%, 20-year bonds on January 1, 2022, at face...
Exercise 10-17
Sandhill Co. issued $310,000 of 8%, 20-year bonds on January 1,
2022, 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, 2022
enter an account title to record the issuance of the bonds on
January 1, 2017
enter a debit amount
enter a...
North Airlines Company issued $900,000 of 8%, 10- year bonds on January 1, 2017, at face...
North Airlines Company issued $900,000 of 8%, 10- year bonds on January 1, 2017, at face value. Interest is payable annually on January 1. Prepare the journal entries to record the following events: The issuance of the bonds. The accrual of interest of December 31. The payment of interest on January 1, 2018. The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded.
Wildhorse Co. issued $480,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable...
Wildhorse Co. issued $480,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Wildhorse Co. issued $513,000,7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually...
Wildhorse Co. issued $513,000,7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight line amortization for bond premium or discount Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) (c) (d) The issuance of the bonds The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on January 1,...
Wildhorse Co. issued $513,000, 7%, 30-year bonds on January 1, 2022, at 105. Interest is payable...
Wildhorse Co. issued $513,000, 7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. The accrual of interest and the premium amortization on December 31, 2022 (b) (c) The payment of interest on January 1, 2023....
Pharoah Company issued $465,000, 7%, 30-year bonds on January 1, 2022, at 104. Interest is payable...
Pharoah Company issued $465,000, 7%, 30-year bonds on January 1, 2022, at 104. Interest is payable annually on January 1. Pharoah uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Cullumber Company issued $456,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable...
Cullumber Company issued $456,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Cullumber uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Exercise 10-25 Sandhill Co. issued $477,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest...
Exercise 10-25 Sandhill Co. issued $477,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for bond premi discount Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) The issuance of the bonds (a) The accrual of interest and the premium amortization on December 31, 2022 (b) (c) The payment of interest on January 1,...
Exercise 10-25 Sandhill Co. issued $510,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest...
Exercise 10-25 Sandhill Co. issued $510,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) (c) (d) The issuance of the bonds. The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on...
for issuance E10.12 (LO 3), AP On August 1, 2022, Gonzaga Corporation issued $600,000, 7 % , 10- year bonds at face value. Interest is payable annually on August 1. Gonzaga's year-end is December 31. nd accrual Instructions Prepare journal entries to record the following events. a. The issuance of the bonds. b. The accrual of interest on December 31, 2022. c. The payment of interest on August 1, 2023.
Exercise 10-17
Sandhill Co. issued $310,000 of 8%, 20-year bonds on January 1,
2022, 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, 2022
enter an account title to record the issuance of the bonds on
January 1, 2017
enter a debit amount
enter a...
Wildhorse Co. issued $480,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Wildhorse Co. issued $513,000,7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight line amortization for bond premium or discount Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) (c) (d) The issuance of the bonds The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on January 1,...
Wildhorse Co. issued $513,000, 7%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Wildhorse uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. The accrual of interest and the premium amortization on December 31, 2022 (b) (c) The payment of interest on January 1, 2023....
Pharoah Company issued $465,000, 7%, 30-year bonds on January 1, 2022, at 104. Interest is payable annually on January 1. Pharoah uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Cullumber Company issued $456,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Cullumber uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
Exercise 10-25 Sandhill Co. issued $477,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for bond premi discount Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) The issuance of the bonds (a) The accrual of interest and the premium amortization on December 31, 2022 (b) (c) The payment of interest on January 1,...
Exercise 10-25 Sandhill Co. issued $510,000, 9%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Sandhill uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) (c) (d) The issuance of the bonds. The accrual of interest and the premium amortization on December 31, 2022. The payment of interest on...
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