Journal Entries |
||||
No |
Date |
Accounts Title & Explanation |
Debit |
Credit |
a |
Jan 01 2020 |
Cash |
$ 240,000 |
|
Discount on Bonds Payable |
$ 10,000 |
|||
Bonds Payable |
$ 250,000 |
|||
(being Issuance of bond recorded) |
||||
b |
July 01 2020 |
Interest Expense |
$ 14,750 |
|
Discount on Bonds Payable |
$ 1,000 |
|||
Cash |
$ 13,750 |
|||
(being payment of Interest recorded) |
||||
c |
Dec 31 2020 |
Interest Expense |
$ 14,750 |
|
Discount on Bonds Payable |
$ 1,000 |
|||
Interest Payable |
$ 13,750 |
|||
(being accrual of Interest recorded) |
Your answer is partially correct. Try again. The Blue Company issued $250,000 of 11% bonds on...
Hello, I am having trouble computing the amounts for the journal entries that are red. I am using a financial calculator, so I would prefer step by step instructions on how to get the correct answer using a calculator. Thank you! The Novak Company issued $250,000 of 11% 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 96. Prepare the journal entries for...
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...
Brief Exercise 14-2 Your answer is partially correct. Try again. The Waterway Company issued $310,000 of 13% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Waterway's journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and...
Exercise 14-4 Your answer is partially correct. Try again. Blue Company issued $408,000 of 9%, 20-year bonds on January 1, 2017, at 101. Interest is payable semiannually on July 1 and January 1. Blue Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount...
Question 8 Your answer is partially correct. Try again. Tamarisk Inc., a private company following ASPE, is having difficulty meeting its working capital requirements. As a result, on January 1, 2020, the company sold bonds with a face value of $2 million, receiving $1,480,000 in cash. The bonds have an interest rate of 6% and mature on January 1, 2022. Interest is payable semi-annually on January 1 and July 1. Set up a schedule of interest expense and discount amortization...
Sheridan Company issued $525,000, 15-year, 7% bonds at 96. Your answer is partially correct. Try again. Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2 Jan. 1 Cash Discount on Bonds Payable Bonds Payable Suppose the remaining Discount on Bonds Payable was $12,600 on December 31, 2027. Show the balance sheet...
Your answer is partially correct. Try again. On January 1, 2017, Cheyenne Company purchased 11% bonds, having a maturity value of $301,000, for $324,415.24. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Cheyenne 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...
Your answer is partially correct. Try again Pharoah Company sells 9% bonds having a maturity value of $2,500,000 for $2,229,651. The bonds are dated January 1, 2017, and mature January 1, 2022 Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Discount Amortization Straight-Line Method Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds Year Jan. 1,...
Your answer is partially correct. Try again. The following information is taken from Ivanhoe Corp.'s balance sheet at December 31, 2021. $ 92,000 Current liabilities Interest payable Long-term liabilities Bonds payable (4%, due January 1, 2032) Less: Discount on bonds payable $2,300,000 23,000 2,277,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Ivanhoe uses straight-line amortization for any bond premium or discount. From December 31, 2021, the bonds will be outstanding for...
Can you help me with these questions Problem 16-02 Your answer is partially correct. Try again. Carla Inc. issued $2,760,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for 13% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $58,800, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 9 shares of Carla Inc.'s $100 par value common stock for each...