Bond premium, entries for bonds payable transactions Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $70,400,000 of 10-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of $79,557,400. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. Question Content Area 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. DateAccount DebitCredit 20Y1 July 1 Cash Premium on Bonds Payable Bonds Payable

Bond premium, entries for bonds payable transactions Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $70,400,000 of 10-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of $79,557,400. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. Question Content Area 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. DateAccount DebitCredit 20Y1 July 1 Cash Premium on Bonds Payable Bonds Payable

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 July 1, Year 1, Khatri Industries Inc. issued $18,000,000 of 10-year, 5% bonds at a market (effective) interest rate of 6%, receiving cash of $16,661,102. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 3. Determine the total interest expense for Year 1. 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute…
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $8,500,000 of 8-year, 6% bonds at a market (effective) interest rate of 4%, receiving cash of $9,654,106. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. Cash fill in the blank fill in the blank Premium on Bonds Payable fill in the blank fill in the blank Bonds Payable Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense fill in the blank fill in the blank Premium on Bonds Payable fill in the blank fill in the…
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Bond Discount, Entries for Bonds Payable Transactions On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $2,500,000 of 8-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $2,369,220. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. Cash Cash Discount on Bonds Payable Discount on Bonds Payable Bonds Payable Bonds Payable Feedback Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the…
Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $60,200,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $67,702,281. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, If an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. - Select - - Select - - Select - - Select - - Select - - Select - 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. - Select - - Select - - Select - - Select -…
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.
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Entries for Issuing and Calling Bonds; Gain Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $771,000 of 25-year, 13% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions: 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 20Y5 Nov. 1 Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) Question Content Area Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank. 20Y1, May 1 - Select - - Select - - Select - - Select - Question Content Area Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1, Nov. 1 - Select -…
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