On 1 January 2019, Oscar Ltd issued 10-year bonds with a face amount of $20,000,000 and a contract rate of 8%, with int...
On 1 January 2019, Oscar Ltd issued 10-year bonds with a face amount of $20,000,000 and a contract rate of 8%, with interest payable annually starting 1 January 2020. The effective interest rate on the date of issuance was 10%. Required: a) Prepare the journal entry for the bond issuance, and explain why the bonds will be issued at less than face value. b) Oscar Ltd has an annual accounting period ending on 31 March 2019. Prepare the adjusting entry...
PART-E On 1st January 2020, Trinket Limited issued 9%, 10-year bonds with a face amount of $3,000,000 for $2,880,000. Interest is payable annually on the 1st of January. The bonds were issued for an effective interest rate of 10%. (a) Prepare the entries to record the issuance of the bonds on 1st January 2020, and the first annual interest accrual and amortisation on 31 December 2020 (assuming that the company uses effective-interest amortisation). (b) Bonds are frequently issued at amounts...
On January 1, 2019, Bishop Company issued 8% bonds dated January 1, 2019, with a face amount of $20 million. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. Determine the price of the bonds at January 1, 2019. Show computations Prepare the journal entry to record the bond issuance by Bishop on January 1, 2019. Prepare the journal entry...
Exercise 10-17 Sandhill Co. issued $310,000 of 8%, 20-year bonds on January 1, 2022, 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.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 enter an account title to record the issuance of the bonds on January 1, 2017 enter a debit amount enter a...
North Airlines Company issued $900,000 of 8%, 10- year bonds on January 1, 2017, at face value. Interest is payable annually on January 1. Prepare the journal entries to record the following events: The issuance of the bonds. The accrual of interest of December 31. The payment of interest on January 1, 2018. The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded.
Sunland Company issued $332,000 of 5%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1 Prepare the journal entry to record the redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1, 2027 Bonds Payable 315,400 Cash 315,400 e Textbook and Media List...
Cullumber Company issued $456,000, 6%, 30-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Cullumber uses straight-line amortization for 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 accrual of interest and the premium amortization on December 31, 2022. (c) The payment of interest on January 1, 2023....
On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $51 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually. Required: 1-a. Determine the price of the bonds at January 1, 2021. 1-b. Prepare the journal entry to record their issuance by Instaform. 2-a. Assume the market rate was 9%. Determine the price of the bonds at January...
P15.7A (LO 2, 3, 4, 7) AP On January 1, 2021, DC Ltd. issued bonds with a maturity value of $8 million when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2031. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The company's year end is December 31. Record bond transactions including bond redemption; show balance sheet presentation. Instructions...
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...