entries for held to maturity securities exercise 17.2 on january 1 2020 Dagwood company purchased at par 6% bonds having a maturity value of 300,000 they are dated january 1, 2020 and maturity january 1 2025 with interest received on january 1 of each

entries for held to maturity securities exercise 17.2 on january 1 2020 Dagwood company purchased at par 6% bonds having a maturity value of 300,000 they are dated january 1, 2020 and maturity january 1 2025 with interest received on january 1 of each

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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View Policies Current Attempt in Progress On January 1, 2020, Teal Company sold 11% bonds having a maturity value of $ 500,000 for $ 518,953, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Teal Company allocates interest and unamortized discount or premium on the effective-interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to O decimal places, e.g. 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 amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2020 eTextbook and Media Save for Later Attempts: unlimited Submit Answer
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Problem 12:On June 30, 2019, King Company had outstanding 9%, P5,000,000 face value bonds maturing on June 30, 2024. Interest is payable semiannually every June 30 and December 31. On June 30, 2019, after amortization was recorded for the period, the unamortized bond premium and bond issue cost were P30, 000 and P50, 000, respectively. On that date, King Company acquired all its outstanding bonds on the open market at 98 and retired them.On June 30, 2019, what amount should King Company recognize as gain before tax on redemption of bonds?
Current Attempt in Progress On January 1, 2025, Cheyenne Company purchased 12% bonds having a maturity value of $278,000 for $299,076.51. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Cheyenne Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2025 2026 2027 (a) (b) (c) No. $296,600 $287,300 2029 (a) $286,200 2028 (List all debit entries before credit entries. 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 O for the amounts. Round answers to 2 decimal places, e.g. 1225.25.) $288,200 $278,000 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to…
Current Attempt in Progress On January 1, 2025, Indigo Company purchased 12% bonds having a maturity value of $275,000 for $295,849.07. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year, Indigo Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2025 $293,800 2028 $285,900 $284,800 2029 $275,000 2026 2027 (b) (c) $283,800 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest revenue and recognition of fair value for 2025. Prepare the journal entry to record the recognition of fair value for 2026.
PART 1 Recording Entries for AFS Debt Securities— Effective Interest Method Adjust FVA at Year-End On July 1, 2020, West Company purchased for cash, twelve $10,000 bonds of North Corporation to yield 10%. The bonds pay 9% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as AFS securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discount or premium. Amortization Schedule - PART 1 Journal Entries and FS Presentation for 2020 - PART 1 Journal Entries for 2021 - PART 2 a. Prepare a bond amortization schedule for 2020 and 2021 using the effective interest method. Note: Round each amount entered into the schedule to the nearest whole dollar. Date StatedInterest MarketInterest DiscountAmortization BondAmortized Cost Jul. 1, 2020 Answer Jan. 1, 2021 Answer Answer Answer Answer Jul. 1, 2021 Answer Answer Answer Answer b.…
on 1/4/2015 Al Masaa company issued 1000 bonds the par value per bonds 50$, bonds bearing interest 11% is payable each July 12015 & 31/ March 1 2016. The bonds mature Dec. 2019. Notes payable would be debt at 1/4/2015 by: Select one: a. OMR1000 Ob. OMR500000 O c. OMR50000 O d. None of the options O O D
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Recording Entries for TS—Effective Interest Method Adjust FVA at Year-End On July 1, 2020, West Company purchased for cash, fifteen $10,000 bonds of North Corporation at a market rate of 6%. The bonds pay 5% interest, payable on a semiannual basis each July 1 and January 1, and mature on July 1, 2023. The bonds are classified as trading securities. The annual reporting period ends December 31. Assume the effective interest method of amortization of any discounts or premiums. Ignore income taxes. Amortization Schedule Journal Entries in 2020 Journal Entries in 2021 a. Prepare a bond amortization schedule for the life of the bonds using the effective interest method. Note: Round each amount entered into the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule. Adjust market interest in the final year of the bond term for any net rounding difference. Date StatedInterest MarketInterest DiscountAmortization BondAmortized Cost Jul.…