Homework Answers
Bond is a fixed income security in which issuer promises pay a series of interest payment and repay the principle on maturity to the investor.
| Journal entry for redemption of bond | |||
| Date | Account Title | Debit | Credit |
| Jan 1, 2023 | Bond Payable | $500,000 | |
| Premium on Bond payable | $6,000 | ||
| Gain on redemption of bond | $16,000 | ||
| Cash [$500000/$100*$98] | $490,000 | ||
| (To record redemption of the bond) | |||
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Stengle Company issued $500,000, 8%, 5 year bonds dated January 1, 2020 at a price of 103. On January 1, 2023 the c...
*E10.20 (L0 6) Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2020, at 103....
*E10.20 (L0 6) Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2020, at 103. Interest is payable annually on January 1. Adcock uses straight-line amortization for bond premium or discount. Instructions Prepare the journal entries to record the following. a. The issuance of the bonds. b. The accrual of interest and the premium amortization on December 31, 2020. c. The payment of interest on January 1, 2021. d. The redemption of the bonds at maturity, assuming interest for...
Champion Oil issued 10-year bonds dated January 1, 2020. The bonds were issued on March 1,...
Champion Oil issued 10-year bonds dated January 1, 2020. The bonds were issued on March 1, 2020, with accrued interest. Interest was payable on the bonds on January 1 and July 1 of each year. The company's year-end was December 31. Champion followed ASPE and chose to use the straight-line amortization method. On May 31, 2023, Champion retired a portion of the bond issue, paying any accrued interest at that date. Addtional information pertaining to the bond issue follows: Face...
E15-5 Swisher Company issued $2,000,000 of bonds on January 1, 2017. E15-5 Prepare entries for issuance,...
E15-5
Swisher Company issued $2,000,000 of bonds on January 1, 2017. E15-5 Prepare entries for issuance, redemption, and conversion of bonds Instructions re the journal entry to record the issuance of the bonds if they are issued at (1o 2) e the journal entry to record the redemption of the bonds at maturity, assuming ord the redemption of the bonds before maturity at 98. d Prepare the journal entry to record the conversion of the bonds into 60,000 shares of...
Exercise 15-15- Crane Company issued $520,000,6%, 20-year bends on January 1, 2020, 103. Interest is payable...
Exercise 15-15- Crane Company issued $520,000,6%, 20-year bends on January 1, 2020, 103. Interest is payable annually on January 1 Canese straight-ine amortiration for bond premium or discount 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) Date Account Titles and Explanation Jan 1, 2020 Prepare the journal entry to record the Keral of interest and the premium amortization on December 31, 2020. (Credit...
Blue Company issued $480,000 of 10%, 20-year bonds on January 1, 2020, at 103. Interest is...
Blue Company issued $480,000 of 10%, 20-year bonds on January 1, 2020, at 103. Interest is payable semiannually on July 1 and January 1. Blue 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 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) (a) The issuance of...
Pharoah Company issued $450,000, 6%, 20-year bonds on January 1, 2020, at 101. Interest is payable...
Pharoah Company issued $450,000, 6%, 20-year bonds on January 1, 2020, at 101. Interest is payable annually on January 1. Pharoah uses straight-line amortization for bond premium or discount. 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.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 454500 450000 4500 Prepare the journal entry to record the accrual of interest and the premium...
Blossom Company issued $450,000, 6%, 30 year bonds on January 1, 2022, at 102. Interest is...
Blossom Company issued $450,000, 6%, 30 year bonds on January 1, 2022, at 102. Interest is payable annually on January 1, Blossom uses straight-line amortization for bond premium discount Prepare the journal entries to record the following events. (Credit account des are automatically inde hemount is entered. Do not indent manually) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. Id The payment of interest on January 1, 2023. (d)...
Brief Exercise 15-03 a-c Cullumber Corporation issued 3,300, 7%, 5-year, $1,000 bonds dated January 1, 2020,...
Brief Exercise 15-03 a-c Cullumber Corporation issued 3,300, 7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Janaury 1, 2020 LINK TO TEXT Prepare the adjusting journal entry on December 31, 2020, to record interest expense. (Credit...
Crane Corporation issued 3,200, 6%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is...
Crane Corporation issued 3,200, 6%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Collapse question part (a) Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Janaury 1, 2020
On January 1, 2020, Ownbey Corporation issued $4,000,000,8%, 5-year bonds dated January 1, 2020, at 96....
On January 1, 2020, Ownbey Corporation issued $4,000,000,8%, 5-year bonds dated January 1, 2020, at 96. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end. Instructions: A. Prepare the journal entries that Ownbey Corporation would make related to the bonds to: 1) Record the issuance of the bonds on Jan 1, 2020; 2) Record the accrue interest payable and amortization of the premium or discount on Dec...
*E10.20 (L0 6) Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2020, at 103. Interest is payable annually on January 1. Adcock uses straight-line amortization for bond premium or discount. Instructions Prepare the journal entries to record the following. a. The issuance of the bonds. b. The accrual of interest and the premium amortization on December 31, 2020. c. The payment of interest on January 1, 2021. d. The redemption of the bonds at maturity, assuming interest for...
Champion Oil issued 10-year bonds dated January 1, 2020. The bonds were issued on March 1, 2020, with accrued interest. Interest was payable on the bonds on January 1 and July 1 of each year. The company's year-end was December 31. Champion followed ASPE and chose to use the straight-line amortization method. On May 31, 2023, Champion retired a portion of the bond issue, paying any accrued interest at that date. Addtional information pertaining to the bond issue follows: Face...
E15-5
Swisher Company issued $2,000,000 of bonds on January 1, 2017. E15-5 Prepare entries for issuance, redemption, and conversion of bonds Instructions re the journal entry to record the issuance of the bonds if they are issued at (1o 2) e the journal entry to record the redemption of the bonds at maturity, assuming ord the redemption of the bonds before maturity at 98. d Prepare the journal entry to record the conversion of the bonds into 60,000 shares of...
Exercise 15-15- Crane Company issued $520,000,6%, 20-year bends on January 1, 2020, 103. Interest is payable annually on January 1 Canese straight-ine amortiration for bond premium or discount 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) Date Account Titles and Explanation Jan 1, 2020 Prepare the journal entry to record the Keral of interest and the premium amortization on December 31, 2020. (Credit...
Blue Company issued $480,000 of 10%, 20-year bonds on January 1, 2020, at 103. Interest is payable semiannually on July 1 and January 1. Blue 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 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) (a) The issuance of...
Pharoah Company issued $450,000, 6%, 20-year bonds on January 1, 2020, at 101. Interest is payable annually on January 1. Pharoah uses straight-line amortization for bond premium or discount. 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.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 454500 450000 4500 Prepare the journal entry to record the accrual of interest and the premium...
Blossom Company issued $450,000, 6%, 30 year bonds on January 1, 2022, at 102. Interest is payable annually on January 1, Blossom uses straight-line amortization for bond premium discount Prepare the journal entries to record the following events. (Credit account des are automatically inde hemount is entered. Do not indent manually) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2022. Id The payment of interest on January 1, 2023. (d)...
Brief Exercise 15-03 a-c Cullumber Corporation issued 3,300, 7%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Date Janaury 1, 2020 LINK TO TEXT Prepare the adjusting journal entry on December 31, 2020, to record interest expense. (Credit...
On January 1, 2020, Ownbey Corporation issued $4,000,000,8%, 5-year bonds dated January 1, 2020, at 96. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end. Instructions: A. Prepare the journal entries that Ownbey Corporation would make related to the bonds to: 1) Record the issuance of the bonds on Jan 1, 2020; 2) Record the accrue interest payable and amortization of the premium or discount on Dec...
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