eBook Show Me How Entries for investment in bonds, interest, and sale of bonds Instructions Chart of Accounts Journal Instructions X Bocelli Co. purchased $135,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Bocelli Co. sold $28,800 of the Sanz County bonds at 96 plus $144 accrued interest less a $85 brokerage commission. Provide journal entries for the following (refer to the Chart of Accounts for exact wording of account titles): a. The purchase of the bonds on May 11 plus 40 days of accrued interest; assume a 360-day year. b. Semiannual interest on October 1. C. Sale of the bonds on October 31. d. Adjusting entry for accrued interest of $1,593 on December 31, Year 1.

eBook Show Me How Entries for investment in bonds, interest, and sale of bonds Instructions Chart of Accounts Journal Instructions X Bocelli Co. purchased $135,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amount plus accrued interest. The bonds pay semiannual interest on April 1 and October 1. On October 31, Year 1, Bocelli Co. sold $28,800 of the Sanz County bonds at 96 plus $144 accrued interest less a $85 brokerage commission. Provide journal entries for the following (refer to the Chart of Accounts for exact wording of account titles): a. The purchase of the bonds on May 11 plus 40 days of accrued interest; assume a 360-day year. b. Semiannual interest on October 1. C. Sale of the bonds on October 31. d. Adjusting entry for accrued interest of $1,593 on December 31, Year 1.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PB: Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discount
Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discount
Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000 of 10-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of 66,747,178. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Instructions 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 2016, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.) b. The interest payment on June 30, 2017, and the amortization of the bond premium, using the interest method. (Round to the nearest dollar.) 3. Determine the total interest expense for 2016.
eBook Show Me How 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 $1,400,000 of 9-year, 6% bonds at a market (effective) interest rate of 5%, receiving cash of $1,500,473. 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. 000 000 b. 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. eck My Work 000 000 c. Why was the company able to issue the bonds for $1,500,473 rather than for the face amount of $1,400,000? The market rate of interest is the contract rate of interest. < Previous Next
Show Me How Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $25,500,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannua at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $23,666,949. eBook a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1 2. 3. b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $23,666,949 rather than for the face…
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eBook Show Me How Entries for bond (held-to-maturity) investments Demopoulos Company acquired $159,600 of Marimar Co., 4% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Demopoulos Company sold $54,000 of the bonds for 97. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds on May 1. May 1 88 b. The semiannual interest received on November 1. Nov. 1 c. The sale of the bonds on November 1. Nov. 1 d. The accrual of $704 interest on December 31. Dec. 31
Journalize the entries to record the following selected bond investment transactions for Southwest Bank: Apr. 1 Purchased $400,000 of Daytona Beach 4.5% bonds at 100 plus accrued interest of $4,500. July 1 Received the first semiannual interest. Sept. 1 Sold $250,000 of the bonds at 97, plus accrued interest of $1,875. If an amount box does not require an entry, leave it blank. 1. 2. 3.
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Entries for issuing and calling bonds; gain Mia Breen Company produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $396,000 of 10-year, 8% callable bonds on May 1, 20Y5, 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: 20Y5 May 1 November 1 20Y9 November 1 20Y5 May 1 Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank. Paid the interest on the bonds. Issued the bonds for cash at their face amount. 20Y5 Nov. 1 Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.) Paid the interest on the bonds. 20Y9 Nov. 1 88 Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.) 88
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eBook Show Me How A Calculator Print Item Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Danzer Industries Inc. issued $6,600,000 of 9-year, 10% bonds at a market (effective) interest rate of 12%, receiving cash of $5,885,352. 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 fram the issuance of the bonds on July 1, Year 1. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable 2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar.) Feedbeck Check My Work ( Previous 8:45 AM 3/28/2020 00 00 00 00