Entries for Issuing BondsThomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $780,000 of 20-year, 7% bonds on May 1 of the current year at facevalue,, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.May 1Issued the bonds for cash at their face amount.Nov. 1Paid the interest on the bonds.Dec. 31 Recorded accrued interest for two months.Journalize the entries to record the above selected transactions for the current year.May 1Nov. 1Dec. 31

Date Particulars Debit ($) Credit ($) May 1 Bank A/c 780,000 To 7% Bonds A/c 780,000…

Answered: Entries for Issuing Bonds Thomson Co.…

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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Entries for issuing and calling bonds; loss Hoover Company, a wholesaler of music equipment, issued $7,460,000 of 10-year, 10% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. 20Y2 March 1 Issued the bonds for cash at their face amount. September 1 Paid the interest on the bonds. 20Y4 September 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) If an amount box does not require an entry, leave it blank. Journalize the entries to record the above selected transactions. Issued the bonds for cash at their face amount. 20Y2 Mar. 1 Paid the interest on the bonds. 20Y2 Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.) 20Y4 Sept. 1
Bond Discount, Entries for Bonds Payable Transactions On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $42,309,236. 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. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. 20Y1 July 1 1. Accounts Payable Bonds Payable Cash Interest Expense Interest Payable Premium on Bonds Payable 2. Accounts Payable Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable 3. Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable Journalize the entries to record the following: The first semiannual…
On January 1 year 1, a company issues 7%, 10 year $300,000 par value bonds that pay annual interest on December 31 of every year. The bonds were issued at 104. Required: Calculate the total borrowing cost (financing cost) for the company, over the life of the bonds.
Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $8,100,000 of 9-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $7,644,536. 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. For a compound transaction, if an amount box does not require an entry, leave it blank. 2. Journalize the entries to record the following: For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answer to the nearest dollar. a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. b. The interest payment on June 30, Year 2, and the amortization of the bond…
Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1, 20Y1, Rodgers issued $77,800,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $87,495,638. 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. fill in the blank 4ad6ca024fc305d_2 fill in the blank 4ad6ca024fc305d_3 fill in the blank 4ad6ca024fc305d_5 fill in the blank 4ad6ca024fc305d_6 fill in the blank 4ad6ca024fc305d_8 fill in the blank 4ad6ca024fc305d_9 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond…
Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $32,900,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $37,000,084. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $270,000 of 20-year, 8% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. May 1 Issued the bonds for cash at their face amount. Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months. Nov. 1 Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank. May 1 Nov. 1 Dec. 31
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Selected debt investment transactions for Easy A Inc., a retail business, are listed below. Easy A Inc. has a fiscal year ending on December 31. Year 1: Feb. 1 May 1 Jun. 1 Sept. 1 Oct. 1 Dec. 1 Dec. 31 Year 2: Mar. 1 Jun. 1 Sept. 1 Bought $35,000 of 6%, XYZ Co. 12-year bonds at their face amount plus accrued interest of $700. The bonds pay interest semiannually on June 1 and December 1. Bought $200,000 of Simple Tree 5%, 20-year bonds at their face amount plus accrued interest of $2,500. The bonds pay interest semiannually on March 1 and September 1. Received semiannual interest on the XYZ Co. bonds. Received semiannual interest on the Simple Tree bonds. Sold $15,000 of Simple Tree bonds at 102% plus accrued interest of $63. Received semiannual interest on the XYZ Co. bonds. Accrued $3,135 interest on the Simple Tree bonds. Accrued $175 interest on the XYZ Co. bonds. Received semiannual interest on the Simple Tree bonds. Received semiannual interest on the XYZ Co. bonds. Received…
tries for issuing and calling bonds; loss Instructions Chart of Accounts Journal ustructions oover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and eptember 1. The fiscal year of the company is the calendar year. purnalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Υ2 Mar. Issued the bonds for cash at their face amount. 1 Sept. 1 Paid the interest on the bonds. 20Υ4 Sept. Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of 1 interest.) Previous Nex
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Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $270,000 of 25-year, 8% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months. Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank.

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