On February 1, 2014, Pen Co. issued $150,000, 9% (payable quarterly), 5-year bonds for total cash...
On February 1, 2014, Pen Co. issued $150,000, 9% (payable quarterly), 5-year bonds for total cash proceeds of
$133,263. Pen’s year end is October 31.
Required: (round to the nearest dollar, use the box below for your answers)
a. Prepare the adjusting journal entry(ies) for purposes of the October 31, 2014 year-end.
b. Prepare the journal entry(ies) on February 1, 2015.
c. On March 1, 2015, Pen purchased 30% of the bonds on the open market for 95 plus accrued interest.
Prepare the journal entry(ies) to update the portion of the bond issue retired and the debt retire
Homework Answers
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On February 1, 2014, Pen Co. issued $150,000, 9% (payable
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On
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on July 31 and January 31. Strauss-Lombardi’s fiscal year ends
December 31. Required: 1. to 4. Prepare the journal entries to
record their issuance by Strauss-Lombardi on February 1, 2021,
interest on July 31,...
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2. On February 1, 2019, Mojito, Inc, issued $1,000,000,6% bonds for $1,082,000. Interest is payable semiannually on January 31 and July 31 with the bonds maturing on February 1, 2029 (10-year bonds). The bonds are callable at 102 On February 1, 2020, Mojito retired $600,000 of the bonds at the call price. Required: a. Prepare the journal entry for the issuance of the bonds b. Prepare any required journal entries for interest payments on July 31, 2019 and January 31,...
Problem 8 Rockne, Inc. issued $500,000 face value of convertible 10-year, 11% stated rate bonds on July 1, 2014. The interest is payable semiannually on December 31 and June 30. The discount in connection with the issue was $4,750, which is amortized monthly using the straight-line basis. The bonds are convertible after one year into five shares of Rockne's common stock (no par value) for each $1,000 of bonds. On October 1, 2015, $150,000 face value of the bonds were...
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On
February 1, 2021, Strauss-Lombardi issued 9% bonds, dated February
1, with a face amount of $780,000. The bonds sold for $713,083 and
mature on January 31, 2041 (20 years). The market yield for bonds
of similar risk and maturity was 10%. Interest is paid semiannually
on July 31 and January 31. Strauss-Lombardi’s fiscal year ends
December 31. Required: 1. to 4. Prepare the journal entries to
record their issuance by Strauss-Lombardi on February 1, 2021,
interest on July 31,...
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