(b) Your answer is partially correct. Flounder Co. sells $390,000 of 12% bonds on June 1, 2025. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2029. The bonds yield 10%. On October 1, 2026, Flounder buys back $120,900 worth of bonds for $124,900 (includes accrued interest). Give entries through December 1, 2027. Prepare all of the relevant journal entries from the time of sale until December 31, 2027. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places, e.g. 58,971. Record entries in the order displayed in the problem statement. 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.) ate Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable '25 Interest Expense Premium on Bonds Payable Cash 1/25 Interest Expense Premium on Bonds Payable Interest Payable Debit 415207 20760 2640 3438 462 Credit 25207 390000 23400 3900
(b) Your answer is partially correct. Flounder Co. sells $390,000 of 12% bonds on June 1, 2025. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2029. The bonds yield 10%. On October 1, 2026, Flounder buys back $120,900 worth of bonds for $124,900 (includes accrued interest). Give entries through December 1, 2027. Prepare all of the relevant journal entries from the time of sale until December 31, 2027. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places, e.g. 58,971. Record entries in the order displayed in the problem statement. 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.) ate Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable '25 Interest Expense Premium on Bonds Payable Cash 1/25 Interest Expense Premium on Bonds Payable Interest Payable Debit 415207 20760 2640 3438 462 Credit 25207 390000 23400 3900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:(b)
Your answer is partially correct.
Flounder Co. sells $390,000 of 12% bonds on June 1, 2025. The bonds pay interest on December 1 and June 1. The due date of
the bonds is June 1, 2029. The bonds yield 10%. On October 1, 2026, Flounder buys back $120,900 worth of bonds for
$124,900 (includes accrued interest). Give entries through December 1, 2027.
Transcribed Image Text:Prepare all of the relevant journal entries from the time of sale until December 31, 2027. (Assume that no reversing entries were
made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places, e.g. 58,971.
Record entries in the order displayed in the problem statement. 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.)
ate
Account Titles and Explanation
Cash
Bonds Payable
Premium on Bonds Payable
'25
Interest Expense
Premium on Bonds Payable
Cash
1/25
Interest Expense
Premium on Bonds Payable
Interest Payable
Debit
415207
20760
2640
3438
462
Credit
25207
390000
23400
3900
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