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Current Attempt in Progress On June 30, 2020, Larkspur Company issued $ 3,551,000 face value of 13%, 20-year bonds at $ 3,818,140, a yield of 12%. Larkspur uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. (a) Prepare the journal entries to record the following transactions. (Round answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021. No. Date Account Titles and Explanation Debit Credit June 30, (1) 2020

Current Attempt in Progress On June 30, 2020, Larkspur Company issued $ 3,551,000 face value of 13%, 20-year bonds at $ 3,818,140, a yield of 12%. Larkspur uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. (a) Prepare the journal entries to record the following transactions. (Round answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021. No. Date Account Titles and Explanation Debit Credit June 30, (1) 2020

FINANCIAL ACCOUNTING
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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**Current Attempt in Progress** On June 30, 2020, Larkspur Company issued $3,551,000 face value of 13%, 20-year bonds at $3,818,140, a yield of 12%. Larkspur uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. **(a)** Prepare the journal entries to record the following transactions. **(Round answer to 0 decimal places, e.g., 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)** 1. The issuance of the bonds on June 30, 2020. 2. The payment of interest and the amortization of the premium on December 31, 2020. 3. The payment of interest and the amortization of the premium on June 30, 2021. 4. The payment of interest and the amortization of the premium on December 31, 2021. | No. | Date | Account Titles and Explanation | Debit | Credit | |-----|--------------|---------------------------------|--------|--------| | (1) | June 30, 2020 | | | |
Transcribed Image Text:**Current Attempt in Progress** On June 30, 2020, Larkspur Company issued $3,551,000 face value of 13%, 20-year bonds at $3,818,140, a yield of 12%. Larkspur uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. **(a)** Prepare the journal entries to record the following transactions. **(Round answer to 0 decimal places, e.g., 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)** 1. The issuance of the bonds on June 30, 2020. 2. The payment of interest and the amortization of the premium on December 31, 2020. 3. The payment of interest and the amortization of the premium on June 30, 2021. 4. The payment of interest and the amortization of the premium on December 31, 2021. | No. | Date | Account Titles and Explanation | Debit | Credit | |-----|--------------|---------------------------------|--------|--------| | (1) | June 30, 2020 | | | |
The image shows a journal entry template for recording transactions and adjustments over specific dates. There are four sections, each corresponding to a different date, with fields for entering account titles, debit amounts, and credit amounts. 1. **June 30, 2020:** - **Account Titles and Explanation:** [Blank fields for input] - **Debit:** [Blank field for input] - **Credit:** [Blank field for input] 2. **December 31, 2020:** - **Account Titles and Explanation:** [Blank fields for input] - **Debit:** [Blank field for input] - **Credit:** [Blank field for input] 3. **June 30, 2021:** - **Account Titles and Explanation:** [Blank fields for input] - **Debit:** [Blank field for input] - **Credit:** [Blank field for input] 4. **December 31, 2021:** - **Account Titles and Explanation:** [Blank fields for input] - **Debit:** [Blank field for input] - **Credit:** [Blank field for input] This layout is used for recording financial transactions in accounting and helps track the movement of funds within different accounts over specified periods.
Transcribed Image Text:The image shows a journal entry template for recording transactions and adjustments over specific dates. There are four sections, each corresponding to a different date, with fields for entering account titles, debit amounts, and credit amounts. 1. **June 30, 2020:** - **Account Titles and Explanation:** [Blank fields for input] - **Debit:** [Blank field for input] - **Credit:** [Blank field for input] 2. **December 31, 2020:** - **Account Titles and Explanation:** [Blank fields for input] - **Debit:** [Blank field for input] - **Credit:** [Blank field for input] 3. **June 30, 2021:** - **Account Titles and Explanation:** [Blank fields for input] - **Debit:** [Blank field for input] - **Credit:** [Blank field for input] 4. **December 31, 2021:** - **Account Titles and Explanation:** [Blank fields for input] - **Debit:** [Blank field for input] - **Credit:** [Blank field for input] This layout is used for recording financial transactions in accounting and helps track the movement of funds within different accounts over specified periods.
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