Homework Answers
Journal entry
| Date | account title and explanation | Debit | Credit |
| Jan 1 | Investment in Bonds | 138600 | |
| Cash | 138600 | ||
| Dec 31 | Interest receivable (138600*10%) | 13860 | |
| Interest revenue | 13860 | ||
| Jan 1 | Cash | 13860 | |
| Interest receivable | 13860 | ||
| (To record receipt of interest) | |||
| Jan 1,2018 | Cash | 76230 | |
| Loss on sale of investment | 2970 | ||
| Investment in Bonds (138600/70*40) | 79200 | ||
| (To record sale of bonds) |
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Exercise 16-3 Flynn Company purchased 70 Rinehart Company 10%, 10-Year, $1,980 bonds on January 1, 2017, for $138,6...
Flynn Company purchased 70 Rinehart Company 10%, 10-year, $1,980 bonds on January 1, 2017, for $138,600....
Flynn Company purchased 70 Rinehart Company 10%, 10-year, $1,980
bonds on January 1, 2017, for $138,600. The bonds pay interest
annually on January 1. On January 1, 2018, after receipt of
interest, Flynn Company sold 40 of the bonds for $76,230.
Prepare the journal entries to record the transactions described
above. (Round answers to 0 decimal places, e.g. 15,250.
Credit account titles are automatically indented when amount is
entered. Do not indent manually. If no entry is required, select
"No...
Flynn Company purchased 85 Rinehart Company 8%, 10-year, $1,980 bonds on January 1, 2017, for $168,300....
Flynn Company purchased 85 Rinehart Company 8%, 10-year, $1,980 bonds on January 1, 2017, for $168,300. The bonds pay interest annually on January 1. On January 1, 2018, after receipt of interest, Flynn Company sold 55 of the bonds for $92,565. Prepare the journal entries to record the transactions described above. (Round answers to o decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No...
Exercise 10-9 On January 1, 2017, Forrester Company issued $351,500, 9%, 5-year bonds at face value....
Exercise 10-9 On January 1, 2017, Forrester Company issued $351,500, 9%, 5-year bonds at face value. Interest is payable annually on January 1. (a) 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.) Debit Credit Date Account Titles and Explanation Jan. 1 (b) Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when...
Brief Exercise 12-2 On January 1, 2018, Marshall Ltd. purchased $221,000 of 9 , 10-year bonds...
Brief Exercise 12-2 On January 1, 2018, Marshall Ltd. purchased $221,000 of 9 , 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Interest is received semi-annually only 1 and January 1. At December 31, 2018, which is the company's fiscal year end, the bonds were trading in the market at 95 (this means 95% of maturity value) Using the fair value through profit or loss model, prepare the journal entry to...
Exercise 17-3 On January 1, 2017, Bonita Company purchased 9% bonds having a maturity value of...
Exercise 17-3 On January 1, 2017, Bonita Company purchased 9% bonds having a maturity value of $200,000, for $303,599.66. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Bonita Company uses the effective interest method to allocate uramortized discount or premium. The bonds are dassified in the held-to-returity category. Prepare the journal entry at the date of the bond purchase. (Enter...
Exercise 10-13 On January 1, Oriole Company issued $315,000, 10%, 10-year bonds at face value. Interest...
Exercise 10-13 On January 1, Oriole Company issued $315,000, 10%, 10-year bonds at face value. Interest is payable annually on January 1. 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.) Debit Date Account Titles and Explanation Credit Jan. 1 Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do...
Crane Company purchased 85 Rinehart Company 8%, 10-year, $1,980 bonds on January 1, 2020, for $168,300....
Crane Company purchased 85 Rinehart Company 8%, 10-year, $1,980 bonds on January 1, 2020, for $168,300. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Crane Company sold 55 of the bonds for $92,565. Prepare the journal entries to record the transactions described above.
Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...
Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and a coupon Interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account tities are automatically indented when...
On January 1, 2017, Klosterman Company issued $400,000, 8%, 10-year bonds at face value. Interest is...
On January 1, 2017, Klosterman Company issued $400,000, 8%,
10-year bonds at face value. Interest is payable annually on
January 1.
Question 1 On January 1, 2017, Klosterman Company issued $400,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account tities are automatically indented when amount is ent Date Account Titles and Explanation Debit Credit Jan. 1, 2017 SHOW LIST OF ACCOUNTS LINK...
Exercise 10-9 On January 1, Crane Company issued S420,000, 896, 20-year bonds at face value. Interest...
Exercise 10-9 On January 1, Crane Company issued S420,000, 896, 20-year bonds at face value. Interest is payable annually on January 1 Prepare 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 LINK TO TEXT VIDEO: APPLIED SKILLS VIDEO: SIMILAR EXERCISE Prepare journal entry to record the accrual of interest on December 31. (Credit account titles are...
Flynn Company purchased 70 Rinehart Company 10%, 10-year, $1,980
bonds on January 1, 2017, for $138,600. The bonds pay interest
annually on January 1. On January 1, 2018, after receipt of
interest, Flynn Company sold 40 of the bonds for $76,230.
Prepare the journal entries to record the transactions described
above. (Round answers to 0 decimal places, e.g. 15,250.
Credit account titles are automatically indented when amount is
entered. Do not indent manually. If no entry is required, select
"No...
Flynn Company purchased 85 Rinehart Company 8%, 10-year, $1,980 bonds on January 1, 2017, for $168,300. The bonds pay interest annually on January 1. On January 1, 2018, after receipt of interest, Flynn Company sold 55 of the bonds for $92,565. Prepare the journal entries to record the transactions described above. (Round answers to o decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No...
Exercise 10-9 On January 1, 2017, Forrester Company issued $351,500, 9%, 5-year bonds at face value. Interest is payable annually on January 1. (a) 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.) Debit Credit Date Account Titles and Explanation Jan. 1 (b) Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when...
Brief Exercise 12-2 On January 1, 2018, Marshall Ltd. purchased $221,000 of 9 , 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Interest is received semi-annually only 1 and January 1. At December 31, 2018, which is the company's fiscal year end, the bonds were trading in the market at 95 (this means 95% of maturity value) Using the fair value through profit or loss model, prepare the journal entry to...
Exercise 17-3 On January 1, 2017, Bonita Company purchased 9% bonds having a maturity value of $200,000, for $303,599.66. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Bonita Company uses the effective interest method to allocate uramortized discount or premium. The bonds are dassified in the held-to-returity category. Prepare the journal entry at the date of the bond purchase. (Enter...
Exercise 10-13 On January 1, Oriole Company issued $315,000, 10%, 10-year bonds at face value. Interest is payable annually on January 1. 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.) Debit Date Account Titles and Explanation Credit Jan. 1 Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do...
Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and a coupon Interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account tities are automatically indented when...
On January 1, 2017, Klosterman Company issued $400,000, 8%,
10-year bonds at face value. Interest is payable annually on
January 1.
Question 1 On January 1, 2017, Klosterman Company issued $400,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account tities are automatically indented when amount is ent Date Account Titles and Explanation Debit Credit Jan. 1, 2017 SHOW LIST OF ACCOUNTS LINK...
Exercise 10-9 On January 1, Crane Company issued S420,000, 896, 20-year bonds at face value. Interest is payable annually on January 1 Prepare 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 LINK TO TEXT VIDEO: APPLIED SKILLS VIDEO: SIMILAR EXERCISE Prepare journal entry to record the accrual of interest on December 31. (Credit account titles are...
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