Date | Account | Debit | Credit |
Year 1, July 1 | Cash | $ 6,325,552 | |
Discount on bonds payable | $ 274,448 | ||
Bonds payable | $ 6,600,000 | ||
(To record bond issue) | |||
31-Dec | Interest expense | $ 225,445 | |
Discount on bonds payable | $ 27,445 | ||
Cash (6600000*6%*6/12) | $ 198,000 | ||
(To record interest) | |||
31-Dec | Income summary | $ 225,445 | |
Interest expense | $ 225,445 | ||
(To Close interest) | |||
Year 2 | |||
30-Jul | Interest expense | $ 225,445 | |
Discount on bonds payable | $ 27,445 | ||
Cash | $ 198,000 | ||
(To record interest) | |||
31-Dec | Interest expense | $ 225,445 | |
Discount on bonds payable | $ 27,445 | ||
Cash | $ 198,000 | ||
(To record interest) | |||
31-Dec | Income summary | $ 450,890 | |
Interest expense | $ 450,890 | ||
(To record close interest) | |||
June 30, Year 3 | Bonds payable | $ 6,600,000 | |
Loss on redemption of bonds | $ 32,668 | ||
Discount on bonds payable | $ 164,668 | ||
Cash (6600000*98/100) | $ 6,468,000 | ||
(To record redemption of bonds) |
2.
Interest Expense | |
Year 1 | $ 225,445 |
Year 2 | $ 450,890 |
3.
Carrying Amount | $ 6,407,887 |
Entries for Bonds Payable, including bond redemption The following transactions were completed by Winklevoss Inc., whose...
Entries for Bonds Payable, including bond redemption The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $2,790,000 of five-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $2,579,701. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $21,030 is combined with the semiannual Interest...
Entries for Bonds Payable, including bond redemption The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: 20Y1 July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 20Y1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. 20Y2...
................. Entries for Bonds Payable, including bond redemption The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: 20Y1 July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 20Y1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment....
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $2,470,000 of five-year, 6% callable bonds dated July 1, Year 1, at a market (effective) rate of 8%, receiving cash of $2,269,661. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $20,034 is combined with the semiannual interest payment. Dec. 31. Closed the interest expense...
Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $7,800,000 of five-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $7,498,854. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $170,000 by issuing a 10-year, 8% installment note to Intexicon Bank. The note requires annual payments of...
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 2012 June 30 Paid the semiannual interest on...
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y2 June 30 Paid the semiannual interest on...
Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $6,770,000 of five-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 12%, receiving cash of $6,520,861. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $310,000 by issuing a 10-year, 7% installment note to Intexicon Bank. The note requires annual payments of...
Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $1,330,000 of five-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 12%, receiving cash of $1,281,055. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $380,000 by issuing a 10-year, 8% installment note to Intexicon Bank. The note requires annual payments of...
Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $5,340,000 of five-year, 7% callable bonds dated July 1, Year 1, at a market (effective) rate of 8%, receiving cash of $5,123,440. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $430,000 by issuing a 10-year, 6% installment note to Intexicon Bank. The note requires annual payments of...