ale Corporation issued $54,000, 8% (cash interest payable semiannually on June 30 and December 311 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method and bond issuance costs are $1,350. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates. 2. January 1, for issuance of bonds. D. June 30, for the first interest payment. Note: Round your answers to the nearest whole dollar. Date a. Jan. 1 b. June 30 Account Name Cash Discount on Bonds Payable Bunts Payable In recard bent issuance. To record interest payment, V V V V v Dr. 0 0 0 0 0 0 Cr. 0 0 54,000 0 0 0

ale Corporation issued $54,000, 8% (cash interest payable semiannually on June 30 and December 311 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method and bond issuance costs are $1,350. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates. 2. January 1, for issuance of bonds. D. June 30, for the first interest payment. Note: Round your answers to the nearest whole dollar. Date a. Jan. 1 b. June 30 Account Name Cash Discount on Bonds Payable Bunts Payable In recard bent issuance. To record interest payment, V V V V v Dr. 0 0 0 0 0 0 Cr. 0 0 54,000 0 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond that pays semiannual interest of $135,000 ($2,250,000 x 12% x ½), receiving cash of $2,379,360. Required: Journalize the first interest payment and the amortization of the related bond premium. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: Multiple Choice Debit Bond Interest Expense $13,800; debit Discount on Bonds Payable $200; credit Cash $14,000. Debit Bond Interest Expense $28,000; credit Cash $28,000. Debit Bond Interest Expense $14,200; credit Cash $14,000; credit Discount on Bonds Payable $200. Debit Bond Interest Expense $14,000; credit Cash $14,000.
On January 1, Year 1, Sheffield Company issued bonds with a face value of $500,000, a term of ten years, and a stated interest rate of 5%. The bonds were issued at 104, and interest is payable each December 31. Sheffield uses the straight-line method to amortize bond discounts and premiums. What is the carrying value of the bonds at December 31, Year 4? Multiple Choice O O O O $508,000 $500,000 $512,000 $510,000
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $8,700,000, 7%, 10-year bond that pays semiannual interest of $304,500 ($8,700,000 × 7% × ½), receiving cash of $10,833,863. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $1,600,000, 6%, 6-year bond that pays semiannual interest of $48,000 ($1,600,000 × 6% × ½), receiving cash of $1,682,063. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. 日

Subject: accounting
On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000. Present entries to record the following transactions. Issuance of bonds. (a) Payment of first semiannual interest on December 31 (record separate entry from premium (b) amortization). (C) Amortization by straight-line method of bond premium on December 31.
Recording Bonds Issued at a Premium-Effective Interest Yale Corporation issued $36,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method. If the bonds were sold to yield 7%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answer to the nearest whole dollar. Date a. Jan. 1 b. June 30 Account Name To record the issuance of bonds. To record the first interest payment. > << Dr. Cr.
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Levi Company issued $78,000 of 9% bonds on January 1 of the current year at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1 and mature in 5 years on January 1. The total interest expense related to these bonds for the current year ending on December 31 is a. $3,510 b. $585 c. $7,020 d. $5,265
On January 1, firm issued $500,000 of 15 year, 6 percent bonds payable for $552,325, yielding an effective rate of 5 percent. Interest is payable on June 30 and December 31 each year. The firm records amortization on each interest date.Bond interest expense for the first six months, using effective interest amortization, is: Select one: A. $15,000 B. $13,808 C. $14,059 D. $16,587 PreviousSave AnswersNext