a) April 1, 2011, to record the issuance of bonds b) September 30, 2011, to pay interest and to amortize the bond premium c) March 31, 2031, to pay interest, amortize the bond premium, and retire the bonds at maturity
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Orient Travels issued $16 Million of 20-year, 10 percent bonds on April 1, 2012, at 103. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2032. The company’s fiscal year ends in June 30. Prepare following
a) April 1, 2011, to record the issuance of bonds
b) September 30, 2011, to pay interest and to amortize the bond premium
c) March 31, 2031, to pay interest, amortize the bond premium, and retire the bonds at maturity
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- On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated March 31, 2011, but the bonds were not issued until April 30, 2011. They were issued at face value. a. Prepare the journal entry at April 30, 2011, to record the sale of the bonds. b. Prepare the journal entry at September 30, 2011, torecord the semiannual bond interest payment. c. Prepare the adjusting entry at December 31, 2011, to record bond interest expense accrued since September 30, 2011. (Assume that no monthly adjusting entries to accrue interest expense had been made prior to December 31, 2011.)On January 1, 2020, Powell Corporation issued $600,000, 5%, 5-year bonds dated January 1, 2017, at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year-end. Instructions Prepare all the journal entries that Powell Corporation would make related to this bond issue through January 1, 2021. Be sure to indicate the date on which the entries would be made.On January 1, 2025, Concord Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds were issued for $537.196, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance. (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Concord uses the effective interest method. (Round answers to 0 decimal places, eg, 38,548. If no entry is required, select "No Entry for the account titles and enter O for the amounts Credit account titles are automatically indented when the amount is entered. Do not indent manually List all debit entries before credit entries) No. (4) Date Account Titles and Explanation Debit Cred
- On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent,30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue wasdated March 31, 2011, but the bonds were not issued until April 30, 2011. They were issued at facevalue.a. Prepare the journal entry at April 30, 2011, to record the sale of the bonds.b. Prepare the journal entry at September 30, 2011, to record the semiannual bond interestpayment.On January 1, 2024, Robert Unlimited issues 8%, 20-year bonds payable with a face value of $240, 000 The bonds are issued at 104 and pay interest on June 30 and December 31. (Assume bond payable are amortized using the straight-line amortization method.) Read the requirements. Requirement 1. Journalize the issuance of the bonds on January 1, 2024. (Record debits first, then credits. Select explanations on the last line of the journal entry.) \table[[Date, Accounts and Explanation, Debit, Credit ], [2024], [Jan. 1]...........] Requirements Joumalize the issuance of the bonds on January 1, 2024. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2024. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2024 Journalize the retirement of the bond at maturity, assuming the last interest payment has already been recorded. (Give the date.)On January 1, 2025, Stellar Corporation issued $450,000 of 7% bonds, due in 10 years. The bonds were issued for $423,783, and pay interest each July 1 and January 1. Stellar uses the effective-interest method. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
- On January 1, 2020, Novak Corporation issued $510,000 of 7% bonds, due in 8 years. The bonds were issued for $480,288, and pay interest each July 1 and January 1. Novak uses the effective-interest method. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Interest Expense Discount on Bonds Payable Cash Interest Expense Discount on Bonds Payable Interest Payable Debit CreditCrane Company issued $255,000 , 7%, 10-year bonds on January 1, 2022, for $273,767 . This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Crane uses the effective-interest method to amortize bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Round answers to decimal places, e.g. 15,250 . Credit account titles are automatically indented when amount is entered . Do not indent manuallyThe Pearl Company issued $240,000 of 10% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Pearl's journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. (a) (b) (c) Date Account Titles and Explanation Debit Cred
- Carla Corporation issued $396,000 of 7% bonds on May 1, 2025. The bonds were dated January 1, 2025, and mature January 1, 2028, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest. Prepare Carla's journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) No. (a) (b) (c) Date May 1, 2025 Dec 31, 2025 July 1, 2025 Account Titles and Explanation Debit Credit SUPPOThe Colson Company issued 300,000 of 10% bonds on January 1, 2015.The bonds are due January 1, 2020, with interest payable each July 1and January 1. The bonds are issued at face value. Prepare Colson’sjournal entries for (a) the January issuance, (b) the July 1 interestpayment, and (c) the December 31 adjusting entry.On January 1, 2021, Sunrise Corporation issued $4,000,000, 8%, 5-year bonds dated January 1, 2021, at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end. Prepare all the journal entries that Sunrise Corporation would make related to this bond issue through January 1, 2022. Be sure to indicate the date on which the entries would be made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation
