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2. Metlock Ltd. issued $694,200 of 15-year, 7.5% bonds on January 1, 2018, when the market...
Concord Corporation sold $2,950,000, 9%, 5-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. Concord Corporation uses the straight-line method to amortize bond premium or discount. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2022, assuming that the bonds sold at 103. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and...
Exercise 14-9 On June 30, 2017, Vaughn Company issued $4,500,000 face value of 13%, 20-year bonds at $4,838,533, a yield of 12%. Vaughn uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit...
Exercise 15-17 Metlock Corporation’s post-closing trial balance at December 31, 2020, is shown as follows. METLOCK CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2020 Dr. Cr. Accounts payable $ 307,700 Accounts receivable $ 492,000 Accumulated depreciation—buildings 189,000 Additional paid-in capital in excess of par—common 1,386,000 From treasury stock 161,000 Allowance for doubtful accounts 29,000 Bonds payable 319,000 Buildings 1,496,000 Cash 188,000 Common stock ($1 par) 202,000 Dividends payable (preferred stock—cash) 4,300 Inventory 609,000 Land 380,000 Preferred stock ($50 par) 450,000 Prepaid...
Exercise 14-4 Metlock Company issued $588,000 of 9%, 20-year bonds on January 1, 2017, at 104. Interest is payable semiannually on July 1 and January 1. Metlock 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 o for the amounts. Credit account titles are automatically indented when amount is entered. (a) The issuance of the...
Exercise 14-09 (Part Level Submission) On June 30, 2020, Larkspur Company issued $3,660,000 face value of 13%, 20-year bonds at $3,935,340, a yield of 12%. Larkspur uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. (a) Your answer is correct. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account...
On June 30, 2020, Shamrock Company issued $4,470,000 face value of 14%, 20-year bonds at $5,142,560, a yield of 12%. Shamrock uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles...
Problem 10-09A (Part 2) Oriole Company sold $3,250,000, 9%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. Prepare the journal entries to record interest expense for 2022 under both of the bond issuances assuming they sold at: (1) 101 and (2) 95. (Credit account titles are automatically indented when amount is entered. Do not...
At December 31, 2020, the available-for-sale debt securities for Storrer, Inc. are as follows. The securities are considered to be a long-term investment. Security Cost Fair Value A $17,500 $16,000 B 12,500 14,000 C 23,000 21,000 $53,000 $51,000 Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. (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...
On June 30, 2020, Pronghorn Company issued $3,400,000 face value of 13%, 20-year bonds at $3,655,780, a yield of 12%. Pronghorn uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles...
Problem 15-4A Talkington Electronics issues a $350,000, 3%, 15-year mortgage note on December 31, 2016. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $41,031. Payments are due on December 31. Prepare an installment payments schedule for the first 4 years. (Round answers to 0 decimal places, e.g. 15,250.) Annual Interest Period Cash Payment Interest Expense...