e amount received compared to the present value was due to the conversion feature. Each $100 bond can be converted into 100 common shares. Interest is paid annually. This tran
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A:
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On December 29, 2020, the company issued 500,000 4% 5-year bonds for 108. The bonds were issued to offer a 3% yield. The excess of the amount received compared to the present value was due to the conversion feature.
Each $100 bond can be converted into 100 common shares.
Interest is paid annually. This transaction was NOT recorded in the
Need Amort schedule, pv, and
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- Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing eTextbook and Media List of Accounts - Your answer is partially correct. Account Titles and Explanation Interest Expense (DZ). Premium on Bonds Payable $ Interest Payable Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Total cost of borrowing Debit eTextbook and Media $ 489600 Debit 20400 Compute the total cost of borrowing for these bonds, assuming the bonds were…On January 1, 2025, Wildhorse Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds were issued for $478,264, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Wildhorse uses the effective-interest method. (Round answers to O decimal places, eg. 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 List all debit entries before credit entries.) No. (a) (6) (c) Date Account Titles and Explanation Debit CreSeaview Company issued $200,000 of 15-year, 9% callable bonds payable on July 31, 2025, at 97. On July 31, 2028, Seaview Company called the bonds at 101. Assume annual interest payments. Requirements 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required. Requirement 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. (Assume bonds payable are amortized using the straight-line amortization method.) First, complete the sentences below. The carrying amount of the bonds payable at issuance (July 31, 2025) is issuance amounts to $ 6,000 $ 194,000. The discount on the bonds at The carrying amount of the bonds payable at July 31, 2028 is $ 195,200 Requirement 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July…
- Cullumber Company sold $2,000,000, 4%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Cullumber Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. (c) Prepare the journal entries for interest and the amortization of the premium in 2022 and 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount…DengerCrane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98. At December 31, 2022, $12,480 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2022. (Enter account name only and do not provide descriptive information.) Crane ElectricBalance Sheet (Partial)choose the accounting period select an opening section name enter a balance sheet item $enter a dollar amount select between addition and deduction : enter a balance sheet item enter a dollar amount $enter a subtotal of the two previous amounts
- On January 1, 2025, Concord Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds were issued for $537.196, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance. (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Concord uses the effective interest method. (Round answers to 0 decimal places, eg, 38,548. 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) No. (4) Date Account Titles and Explanation Debit CredOn January 1, 2022, Oriole Company issued $430,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Date Jan. 1, 2022 Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Date Account Titles and Explanation Dec. 31, 2022 Credit Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Attempts: 0 of 5 used Submit Answer CreditYour answer is partially correct. On January 1, 2020, Oriole Enterprises issued 8%, 20-year bonds with a face amount of $5,350,000 at 102. Interest is payable annually on January 1. Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses straight-line amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Jan. 1 Dec. 31 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Premium on Bonds Payable Interest Payable Debit 5457000 385200 42800 Credit 5350000 107000 428000
- BC Corporation sold $55,000,000, 8%, 10-year bonds on January 1, 2022. The bonds apply interest on July 1 and January 1. BC uses the staight-line method to amortize bond premium or discount. Assume no interestaccrued on June 30.Instructions1. Prepare all the necessary journal entries to record the issuance of the bonds and bond interesthappens for 2022, assuming that the bonds sold at 105.2. Prepare journal entries as in part (1) assuming that the bond sold at 98.3. Show statement of financial position presentation for each bond issued at December 31, 2022.On January 1, 2021, the company issued $1,800,000, 6% bonds with a 10-year maturity. The bonds were issued to investors that require an effective interest rate of 9%. The accountant did NOT record the issuance of these bonds. Interest is paid annually and the accountant did NOT record the interest payment transaction. The effective interest method is used to amortize any premium or discount. NOTE – round calculations to nearest dollar. In the Excel spreadsheet, see the tab labelled “Bonds Payable – Series 2” to make any calculations, including an amortization schedule, to support journal entries.Coronado Inc. issued $920,000 of 10%, 10-year bonds on June 30, 2025, for $814,472. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Coronado uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2025. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded
