On January 1, Pina Colada Corp. lent $38,000 to Kingbird, Inc., accepting Kingbird’s $50,578, three-year, zero-interest-bearing note. The implied interest is 10%.
On January 1 , Pina Colada Corp. lent \(\$ 38,000\) to Kingbird, Inc., accepting Kingbird's \(\$ 50,578,\) three-year, zero-interest bearing note. The implied interest is \(10 \%\).
(a)
Prepare Pina's journal entries for the initial transaction, recognition of interest each year assuming use of the effective interest method, and the collection of \(\$ 50,578\) at maturity. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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On January 1, Pina Colada Corp. lent $38,000 to Kingbird, Inc., accepting Kingbird’s $50,578, three-year, zero-interest-bearing note. The implied interest is 10%.
Steve Acrobats lent $13,798 to Donaldson, Inc., accepting Donaldson's 2-years, $17,000, zero-interest-bearing note. The implied interest...
Steve Acrobats lent $13,798 to Donaldson, Inc., accepting Donaldson's 2-years, $17,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Steve's journal entries for the initial transaction, recognition of interest each year, and the collection of $17,000 at maturity. (Round answers to 0 decimal places, e.g. 5,275. 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 the amount is entered. Do not indent manually.)...
Steve Acrobats lent $13,798 to Donaldson, Inc., accepting Donaldson's 2-years, $17,000, zero-interest-bearing note. The...
Steve Acrobats lent $13,798 to Donaldson, Inc., accepting Donaldson's 2-years, $17,000, zero-interest-bearing note. The implied interest rate is 11% Prepare Steve's journal entries for the initial transaction, recognition of interest each year, and the collection of $17,000 at maturity. (Round answers to 0 decimal places, e.g. 5,275. 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 the amount is entered. Do not indent manually.)...
Brief Exercise 7-8 Tony Acrobats lent $25,972 to Donaldson, Inc., accepting Donaldson’s 2-year, $32,000, zero-interest-bearing note....
Brief Exercise 7-8
Tony Acrobats lent $25,972 to Donaldson, Inc., accepting
Donaldson’s 2-year, $32,000, zero-interest-bearing note. The
implied interest rate is 11%.
Prepare Tony’s journal entries for the initial transaction,
recognition of interest each year, and the collection of $32,000 at
maturity. (Round answers to 0 decimal places, e.g.
5,275. 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 the amount is entered. Do...
Current Attempt in Progress Marigold Company loaned $55,537 to Hemingway, Inc, accepting Hemingway's 2-year. $67,200, rero-interest-bearing...
Current Attempt in Progress Marigold Company loaned $55,537 to Hemingway, Inc, accepting Hemingway's 2-year. $67,200, rero-interest-bearing note. The implied interest rate is 10%. Prepare Marigold's journal entries for the initial transaction recognition of interest each year, and the collection of $67,200 at maturity Credit account titles are automatically indented when the amount is entered. Do not indent manually Account Titles and Explanation Debit Credit (To record the receipt of the note at a discount.) (To record the interest revenue at...
On January 1, 2020, Pina Colada Corp. acquires $310,000 of Spider Products Inc. 9% bonds at...
On January 1, 2020, Pina Colada Corp. acquires $310,000 of
Spider Products Inc. 9% bonds at a price of $294,849. The interest
is payable each December 31, and the bonds mature on December 31,
2022. The investment will provide Pina Colada Corp. with a 11%
yield. Pina Colada Corp. applies IFRS and accounts for this
investment using the amortized cost model.
Prepare a three-year bond amortization schedule.
(Round answers to 0 decimal places, e.g.
5,275.)
Schedule of Interest Income
and...
Pina Colada Corporation purchased 1,050 common shares of Nolan Inc. common stock for $14,600 (Pina Colada...
Pina Colada Corporation purchased 1,050 common shares of Nolan Inc. common stock for $14,600 (Pina Colada does not have significant influence). During the year, Nolan paid a cash dividend of $3.90 per share. At year end, Nolan stock was selling for $35.20 per share. Prepare Pina Colada’s journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
Brief Exercise 10-11 Pina Colada Corp. issues $2.80 million, 10-year, 6% bonds at 98, with interest...
Brief Exercise 10-11 Pina Colada Corp. issues $2.80 million, 10-year, 6% bonds at 98, with interest payable each January 1. Your answer is partially correct. Try again. Prepare the journal entry to record the sale of these bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 2740000 Discount on Bonds Payable 600000 Bonds Payable 2800000 Your answer is partially correct....
Kingbird Corporation issued a 5-year, $68,000, zero-interest-bearing note to Garcia Company on January 1, 2020, and...
Kingbird Corporation issued a 5-year, $68,000,
zero-interest-bearing note to Garcia Company on January 1, 2020,
and received cash of $68,000. In addition, Kingbird agreed to sell
merchandise to Garcia at an amount less than regular selling price
over the 5-year period. The market rate of interest for similar
notes is 12%.
Prepare Kingbird Corporation’s January 1 journal entry.
(Round present value factor calculations to 5 decimal
places, e.g. 1.25124 and final answer to 0 decimal places, e.g.
38,548. If no...
Kingbird, Inc. issued $480,000, 596, 20-year bonds on January 1, 2019, at 101. Interest is payable annually on January 1. Kingbird uses straight-line amortization for bond premium or discount. Prepar...
Kingbird, Inc. issued $480,000, 596, 20-year bonds on January 1, 2019, at 101. Interest is payable annually on January 1. Kingbird uses straight-line amortization for bond premium or discount. 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 Prepare the journal entry to record the accrual of interest and the premium amortization on December 31,2019....
Sheffield Company loaned $83,306 to Hemingway, Inc, accepting Hemingway's 2-year, $100,800, zero-interest-bearing note. The implied interest...
Sheffield Company loaned $83,306 to Hemingway, Inc, accepting
Hemingway's 2-year, $100,800, zero-interest-bearing note. The
implied interest rate is 10%. Prepare Sheffield's journal entries
for the initial transaction, recognition of interest each year, and
the collection of $100,800 at maturity.
Account Titles and Explanation Debit Credit Notes Receivable 100800 Discount on Notes Receivable 17494 Cash 83306 (To record the receipt of the note at a discount.) Discount on Notes Receivable 8331 Interest Revenue 8331 (To record the interest revenue at the...
Steve Acrobats lent $13,798 to Donaldson, Inc., accepting Donaldson's 2-years, $17,000, zero-interest-bearing note. The implied interest rate is 11%. Prepare Steve's journal entries for the initial transaction, recognition of interest each year, and the collection of $17,000 at maturity. (Round answers to 0 decimal places, e.g. 5,275. 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 the amount is entered. Do not indent manually.)...
Steve Acrobats lent $13,798 to Donaldson, Inc., accepting Donaldson's 2-years, $17,000, zero-interest-bearing note. The implied interest rate is 11% Prepare Steve's journal entries for the initial transaction, recognition of interest each year, and the collection of $17,000 at maturity. (Round answers to 0 decimal places, e.g. 5,275. 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 the amount is entered. Do not indent manually.)...
Brief Exercise 7-8
Tony Acrobats lent $25,972 to Donaldson, Inc., accepting
Donaldson’s 2-year, $32,000, zero-interest-bearing note. The
implied interest rate is 11%.
Prepare Tony’s journal entries for the initial transaction,
recognition of interest each year, and the collection of $32,000 at
maturity. (Round answers to 0 decimal places, e.g.
5,275. 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 the amount is entered. Do...
Current Attempt in Progress Marigold Company loaned $55,537 to Hemingway, Inc, accepting Hemingway's 2-year. $67,200, rero-interest-bearing note. The implied interest rate is 10%. Prepare Marigold's journal entries for the initial transaction recognition of interest each year, and the collection of $67,200 at maturity Credit account titles are automatically indented when the amount is entered. Do not indent manually Account Titles and Explanation Debit Credit (To record the receipt of the note at a discount.) (To record the interest revenue at...
On January 1, 2020, Pina Colada Corp. acquires $310,000 of
Spider Products Inc. 9% bonds at a price of $294,849. The interest
is payable each December 31, and the bonds mature on December 31,
2022. The investment will provide Pina Colada Corp. with a 11%
yield. Pina Colada Corp. applies IFRS and accounts for this
investment using the amortized cost model.
Prepare a three-year bond amortization schedule.
(Round answers to 0 decimal places, e.g.
5,275.)
Schedule of Interest Income
and...
Brief Exercise 10-11 Pina Colada Corp. issues $2.80 million, 10-year, 6% bonds at 98, with interest payable each January 1. Your answer is partially correct. Try again. Prepare the journal entry to record the sale of these bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 2740000 Discount on Bonds Payable 600000 Bonds Payable 2800000 Your answer is partially correct....
Kingbird Corporation issued a 5-year, $68,000,
zero-interest-bearing note to Garcia Company on January 1, 2020,
and received cash of $68,000. In addition, Kingbird agreed to sell
merchandise to Garcia at an amount less than regular selling price
over the 5-year period. The market rate of interest for similar
notes is 12%.
Prepare Kingbird Corporation’s January 1 journal entry.
(Round present value factor calculations to 5 decimal
places, e.g. 1.25124 and final answer to 0 decimal places, e.g.
38,548. If no...
Kingbird, Inc. issued $480,000, 596, 20-year bonds on January 1, 2019, at 101. Interest is payable annually on January 1. Kingbird uses straight-line amortization for bond premium or discount. 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 Prepare the journal entry to record the accrual of interest and the premium amortization on December 31,2019....
Sheffield Company loaned $83,306 to Hemingway, Inc, accepting
Hemingway's 2-year, $100,800, zero-interest-bearing note. The
implied interest rate is 10%. Prepare Sheffield's journal entries
for the initial transaction, recognition of interest each year, and
the collection of $100,800 at maturity.
Account Titles and Explanation Debit Credit Notes Receivable 100800 Discount on Notes Receivable 17494 Cash 83306 (To record the receipt of the note at a discount.) Discount on Notes Receivable 8331 Interest Revenue 8331 (To record the interest revenue at the...
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