Below are selected transactions for Ink Corporation. Ink Corporation began operations on January 1, 2021 and has a fiscal year end of December 31*. Prepare journal entries for each transaction. MUST SHOW ALL YOUR WORK! IF NECESSARY, ROUND AMOUNTS TO NEAREST DOLLAR. Date Transaction Description 08/01/2021 Purchased for cash $95,000 of Zarpo, Inc. 12% bonds at 100 plus accrued interest. The bonds pay interest on August 31" and February 28th. 8/31/2021 Received the semiannual interest payment. 11/30/2021 Sold $45,000 of the bonds at 98 plus accrued interest.

Below are selected transactions for Ink Corporation. Ink Corporation began operations on January 1, 2021 and has a fiscal year end of December 31*. Prepare journal entries for each transaction. MUST SHOW ALL YOUR WORK! IF NECESSARY, ROUND AMOUNTS TO NEAREST DOLLAR. Date Transaction Description 08/01/2021 Purchased for cash $95,000 of Zarpo, Inc. 12% bonds at 100 plus accrued interest. The bonds pay interest on August 31" and February 28th. 8/31/2021 Received the semiannual interest payment. 11/30/2021 Sold $45,000 of the bonds at 98 plus accrued interest.

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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Salt Foods purchases thirty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $27,868 on January 1. The market interest rate for bonds of similar risk and maturity is 7%. Salt Foods receives interest semiannually on June 30 and December 31.1. & 2. Record the necessary entries regarding the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole number.)
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Need complete and correct answer for all parts with all workings and steps in text form please show calculation narrations and explanation clearly for all steps answer in text form
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Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $25,100,000 of five-year, 5% bonds at a market (effective) interest rate of 3%, receiving cash of $27,414,835. Interest is payable semiannually on April 1 and October 1. Required: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles. 1. Issuance of bonds on April 1, Year 1. 2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) b. Explain why the company was able to issue the bonds for $27,414,835 rather than for the face amount of $25,100,000. Chart of Accounts CHART OF ACCOUNTS Smiley Corporation General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes…
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