bokintKnowledge Check 01On January 1, Year 1, McClurg Corporation issues 5%, 11-year bonds with a face amount of $70,000 for $76,180. The market interestrate is 4%. Interest is paid semiannually on June 30 and December 31. Complete the necessary journal entry for the first semiannualinterest payment by selecting the account names from the drop-down menus and entering the associated dollar amounts. (If no entryis required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)rencesView transaction listJournal entry worksheet< 1Record the first semiannual interest payment for 5%, 11-year bonds with aface value of $70,000.Note: Enter debits before credits.

Given the information:Price of bond = $76,180Principal or face value = $70,000Market interest rate =…

Answered: bok int Knowledge Check 01 On January…

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 Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,020 for $126,300. The bonds had a stated rate of 5% and paid interest semi-annually. What is the journal entry to record the issuance of the bonds? If an amount box does not require an entry, leave it blank. Jan. 1
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Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,800,000, 11%, 5-year bond that pays semiannual interest of $484,00 ($8,800,000 x 11% x %2), receiving cash of $8,476,157. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
Prepare Garzon Company's journal entries to record the following transactions for the current year. Jan. 1 Purchases 9% bonds (as a held-to-maturity investment) issued by PBS at a cost of $44,000, which is the par value. July 1 Receives first semiannual payment of interest from PBS bonds. Dec. 31 Receives a check from PBS in payment of principal ($44,000) and the second semiannual payment of interest. Purchases 9% bonds (as a held-to-maturity investment) issued by PBS at a cost of $44,000, which is the par value. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 1 Receives first semiannual payment of interest from PBS bonds. Note: Enter debits before credits. Date General Journal Debit Credit Jul. 1 Receives a check from PBS in payment of principal ($44,000) and…
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Instructions On the first day of the fiscal year, a company issues a $1,450,000, 5% , five-year bond that pays semiannual interest of $36,250 ($1,450,000 x 5% *%), receiving cash of $1,408,720. Journalize the first interest payment and the amortization of the related bond discount Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles Journal DATE DESCRIPTION JOURNAL POST REF DEBIT CREDIT
On the first day of the fiscal year, a company issues a $900,000, 9%, 5-year bond that pays semiannual interest of $40,500 ($900,000 x 9% × 1/2), receiving cash of $884,176. Journalize the entry for the issuance of the bonds.If an amount box does not require an entry, leave it blank
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