Sarasota, Inc. had outstanding $6,340,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,570,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $190,200) at 103 on August 1.
Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.
Date | account and explanation | debit | credit |
July 1 | Cash (8570000*.98) | 8398600 | |
Discount on bonds payable | 171400 | ||
Bonds payable | 8570000 | ||
(To record bond issue) | |||
Aug 1 | Bonds payable | 6340000 | |
Loss on redemption of bonds | 380400 | ||
Discount on bonds payable | 190200 | ||
Cash (6340000*1.03) | 6530200 | ||
(To record refunding) | |||
Sarasota, Inc. had outstanding $6,340,000 of 11% bonds (interest payable July 31 and January 31) due...
14-13 Pronghorn, Inc. had outstanding $6,340,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,570,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $190,200) at 103 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Round...
Crane, Inc. had outstanding $5,860,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,880,000 of 11%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $58,600) at 101 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (To record...
Carla, Inc. had outstanding $6,060,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,860,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $242,400) at 104 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Round answers...
Matthew Perry Company had outstanding $6,000,000 of 11% bonds (interest payable January 31 and July 31) due in 10 years. On July 1, the company issued $9,000,000 of 10%, 15-year bonds (interest payable on January 1 and July 1) at 98. A portion of the proceeds of the $9,000,000 bonds was used to call the entire balance of the 11% bonds (with an unamortized discount of $120,000) at 102 on August 1. Instructions: Prepare the journal entries necessary to (1)...
Please explain detail Sweet, Inc. had outstanding $5,580,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,400,000°f 10%, 15-year bonds (interest payable July 1 and January 1) at 99. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $111,600) at 102 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds....
Ayayai, Inc. had outstanding $6,130,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,040,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $61,300) at 101 on August 1.Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.
Please write the steps to get the answers. E14.13 (LO 1, 2) (Entries for Redemption and Issuance of Bonds) Matt Perry, Inc. had outstanding $6,000,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,000,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $120,000) at 102 on August 1....
ent Exercise 14-13 Blossom, inc. had outstanding S6 430,000 of 10% bonds (interest payable July 3 1 and January 3) de in l years. On M, , t ssued S, 28 000 se m·s-rerbonds (intrest payable )uly 1 and January 1) at 97. A portion cr the proceeds was used to call the i 0% bonds (with unamortized discount or sig,900) at î03 on Agust . Prepare the journal entries necessary to record issue of select "No Entry" for the...
Please provide step by step solutions for learning purposes Pharoah, Inc. had outstanding $5,770,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,800,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $230,800) at 104 on August 1. Prepare the journal entries necessary to record issue of the new...
Exercise 14-21 Teal Mountain Inc. had outstanding $11 million of 9.00% bonds (interest payable March 31 and September 30) due in 12 years. Teal Mountain was able to reduce its risk rating through investing in more real estate. As a result, on September 1, it issued $6 million of 10-year, 7% bonds (interest payable July 1 and January 1) at 96. A portion of the proceeds was used to call the 9.00% bonds at 106 on October 1. The unamortized...