Early Retirement of Bonds Elston Company issued $500,000 of eight percent, 20-year bonds at 106 on...
Early Retirement of Bonds Elston Company issued $500,000 of eight percent, 20-year bonds at 106 on January 1, 2010. Interest is payable semiannually on July 1 and January 1. Through January 1, 2016, Elston amortized $5,000 of the bond premium. On January 1, 2016, Elston retired the bonds at 103 (after making the interest payment on that date). Prepare the journal entry to record the bond retirement on January 1, 2016. General Journal Date Description Debit Credit Jan.1 Bonds Payable $Answer $Answer Answer Answer Answer Answer Answer Answer Cash Answer Answer To retire bonds and record gain on bond retirement.
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Early Retirement of Bonds Elston Company issued $500,000 of
eight percent, 20-year bonds at 106 on...
can you show .me how to work this, not just the answer but how to work...
can you show .me how to work this, not just the answer but how to work through it so i know thank . Early retirement of bonds Eaton company issued 600000 of 8% 20 year bonds at 106 on January 1 2013. Interest is payable semiannually on july 1st and Jan 1st. Through Jan 1 2019 Eaton amortized 5,000 of the bond premium. On Jan 1st 2019 Eaton retired the bond at 103 after making the interest payment on that...
On January 1, 2018, Patel Company issued $500,000 of 11%, five-year bonds payable at 102. Patel...
On January 1, 2018, Patel Company issued $500,000 of 11%, five-year bonds payable at 102. Patel Company has extra cash and wishes to retire the bonds payable on January1, 2019, immediately after making the second semiannual interest payment. To retire the bonds, Patel pays the market price of 99. 1. What is Patel Company's carrying amount of the bonds payable on the retirement date? 2. How much cash must Patel Company pay to retire the bonds payable? 3. Compute Patel...
Exercise 9-17A Record the early retirement of bonds issued at a premium (LO9-6) [The following information applies to th...
Exercise 9-17A Record the early retirement of bonds issued at a premium (LO9-6) [The following information applies to the questions displayed below.] On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 6% and the bonds issued at $644,632. Exercise 9-17A Part 1 Required: 1. Using an amortization schedule, show that the bonds have...
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...
On April 1, 2016, Alpha Company issued $500,000 of 12%, 10-year bonds. The bonds, which were...
On April 1, 2016, Alpha Company issued $500,000 of 12%, 10-year bonds. The bonds, which were issued at 103, pay interest on Octobér 1 and April 1. Use this information to prepare the General Journal entry (without explanation) to record the April 1, 2016 bond issue. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit
On January 1, 2018, Mechanics Credit Union (MCU) issued 6%, 20-year bonds payable with face value...
On January 1, 2018, Mechanics Credit Union (MCU) issued 6%, 20-year bonds payable with face value of $900,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106. Journalize the following bond transactions: (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest...
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1....
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January (b) Prepare the general journal entry to record the first interest payment on June 30. 2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
. Jackson Corporation issued $250,000 of 10-year, 8% bonds at par on January 1, 2000. Interest is...
. Jackson Corporation issued $250,000 of 10-year, 8% bonds at par on January 1, 2000. Interest is payable on January 1 and July 1. Record the following transactions in the journal below Transactions for 2000 Jan. 1 Issued $250,000 of 10-year, 8% bonds at par. Jul. 31 Interest payment. Dec. 31 Recorded the accrued interest on the bonds. (Interest will be paid next day, which is in another fiscal year) Transactions for 2010 Jan. 1 Interest payment. Jul. 1 Interest payment. Dec. 31 Record the retirement of...
On January 1, 2011, Gray Company issued $500,000 of 5-year, 3% bonds for $470,000, their interest...
On January 1, 2011, Gray Company issued $500,000 of 5-year, 3% bonds for $470,000, their interest payable semiannually every June 30 and December 31. Gray uses straight-line amortization, having judged the difference under the effective-interest method to be immaterial. Scenario #1 On April 30, 2015, Gray retired all of the bonds at 101. Prepare the bond-related journal entry(s) Gray should have made on April 30, 2015. Scenario #2 On April 30th 2015, Gray retired $100,000 of the bonds at 98....
On April 1, 2016, Alpha Company issued $500,000 of 12%, 10-year bonds. The bonds, which were issued at 103, pay interest on Octobér 1 and April 1. Use this information to prepare the General Journal entry (without explanation) to record the April 1, 2016 bond issue. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit
On January 1, 2018, Mechanics Credit Union (MCU) issued 6%, 20-year bonds payable with face value of $900,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106. Journalize the following bond transactions: (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest...
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January (b) Prepare the general journal entry to record the first interest payment on June 30. 2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
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