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On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of interest was 7% and interest is paid annually on December 31 Required: Prepare the necessary journal entry on December 31, 2023, assuming the straight-line method is followed. 2023 Dec. 31 Record interest expense
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Debt Issued at a Premium (Straight Line) On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of interest was 7% and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31, 2023, assuming the straight-line method is followed. 2023 Dec. 31 Record interest expense
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On December 31, 2018, The Rock Restaurant borrowed $254,500 by issuing three-year, 7% bonds with a face amount of $250,000. Interest is payable annually on December 31. The company uses the effective interest rate method of amortization. H Required: Prepare an amortization table using the following column headings: Cash Payment (Credit) Interest Expense (Debit) Premium on Bonds Payable Balance (Credit) Premium on Bonds Payable (Debit) Bond Payable + Carrying Value (Credit) Period
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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...
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On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
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Debt Issued at a Discount (Straight Line) On January 1, 2020, Drew Company issued $900,000, 5-year bonds for $855,000. The stated rate of interest was 8% and interest is paid annually on December 31. Required: Prepare the amortization table for Drew Company's bonds. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "o". Drew Company Amortization Table Interest Expense (Debit) Discount on Bonds Payable (Credit) Discount on Bonds Payable Balance...
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Crane Company issued $264,000, 8%, 15-year bonds on December 31, 2021, for $253,440. Interest is payable annually on December 31. Crane uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...
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Cullumber Company issued $333,000, 8%, 15-year bonds on December 31, 2021, for $319,680. Interest is payable annually on December 31. Cullumber uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...
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Blossom Company issued $261,000,7%, 15-year bonds on December 31, 2021, for $250,560. Interest is payable annually on December 31. Blossom uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at maturity,...
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- Your answer is partially correct. Blossom Company issued $294,000,7%, 15-year bonds on December 31, 2021, for $282,240. Interest is payable annually on December 31. Blossom uses the straight-line method to amortize bond premium or discount Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The...
On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of interest was 7% and interest is paid annually on December 31 Required: Prepare the necessary journal entry on December 31, 2023, assuming the straight-line method is followed. 2023 Dec. 31 Record interest expense
Debt Issued at a Premium (Straight Line) On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of interest was 7% and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31, 2023, assuming the straight-line method is followed. 2023 Dec. 31 Record interest expense
On December 31, 2018, The Rock Restaurant borrowed $254,500 by issuing three-year, 7% bonds with a face amount of $250,000. Interest is payable annually on December 31. The company uses the effective interest rate method of amortization. H Required: Prepare an amortization table using the following column headings: Cash Payment (Credit) Interest Expense (Debit) Premium on Bonds Payable Balance (Credit) Premium on Bonds Payable (Debit) Bond Payable + Carrying Value (Credit) Period
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
Debt Issued at a Discount (Straight Line) On January 1, 2020, Drew Company issued $900,000, 5-year bonds for $855,000. The stated rate of interest was 8% and interest is paid annually on December 31. Required: Prepare the amortization table for Drew Company's bonds. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "o". Drew Company Amortization Table Interest Expense (Debit) Discount on Bonds Payable (Credit) Discount on Bonds Payable Balance...
Crane Company issued $264,000, 8%, 15-year bonds on December 31, 2021, for $253,440. Interest is payable annually on December 31. Crane uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...
Cullumber Company issued $333,000, 8%, 15-year bonds on December 31, 2021, for $319,680. Interest is payable annually on December 31. Cullumber uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at...
Blossom Company issued $261,000,7%, 15-year bonds on December 31, 2021, for $250,560. Interest is payable annually on December 31. Blossom uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The redemption of the bonds at maturity,...
- Your answer is partially correct. Blossom Company issued $294,000,7%, 15-year bonds on December 31, 2021, for $282,240. Interest is payable annually on December 31. Blossom uses the straight-line method to amortize bond premium or discount Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2022. (c) The...