Entries for Issuing BondsMay 1Nov. 1Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $690,000 of 15-year, 11% bonds on May 1 of the currentyear at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.Issued the bonds for cash at their face amount.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.May 1Nov. 1Dec. 31E0000 00☆זהPrevious

The question asked to prepare the journal entries in the books of Thompson Co. Journal entries:…

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 bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $360,000 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. November 1. Paid the interest on the bonds. December 31. Recorded accrued interest for 2 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. May 1 Nov. 1 Dec. 31 00 00 00
Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $550,000, 10%, 10-year bond that pays semiannual interest of $27,500 ($550,000 × 10% × ½ year), receiving cash of $550,000. (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. (b) Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. (c) Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.
Fill in the Blank Question Î A company issues $100,000 of 5%, 10-year bonds dated January 1. The bonds pay interest semiannually on June 30 and December 31 each year. If the bonds are sold at par value, the issuer records the sale with a debit to in the amount of $
Abioye Co. produces and distributes semiconductors for use by computer manufacturers. Abioye Co. issued $360,000 of 10-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. Journalize the entries to record the following selected transactions for the current 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.
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.
The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31 Purchased 75, $1,000 government bonds at 100 plus accrued interest of $313 (one month). The bonds pay 5% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 33, $1,000 bonds at 95 plus $275 accrued interest (two months). Required: a. Journalize the entries for these transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. b. Provide the December 31, Year 1, adjusting journal entry for semiannual interest earned on the bonds.
Daan Corporation wholesales repair products to equipment manufacturers. On March 1, 2010, Daan Corporation issued $24,000,000 of five-year, 12% bonds at an effective interest rate of 10%, receiving cash of $25,853,146. Interest is payable semiannually on March 1 and September 1. Journalize the entries to record the following: a. Sale of bonds on March 1, 2010. b. First interest payment on September 1, 2010, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)
Entries for Issuing Bonds Abioye Co. produces and distributes semiconductors for use by computer manufacturers. Abioye Co. issued $990,000 of 25-year, 9% 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. Round your answers to whole number. May 1 - Select - - Select - - Select - - Select - Nov. 1 - Select - - Select - - Select - - Select - Dec. 31 - Select - - Select - - Select - - Select -
Entries for Issuing and Calling Bonds; Gain Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,536,000 of 20-year, 9% 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. 1.) Journalize the entries to record the following selected transactions: 20Y5 May 1: Issued the bonds for cash at their face amount. Nov 1: Paid the interest on the bonds. 20Y9 Nov 1: Called the bond issue at 96, 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. 2.) Issued the bonds for cash at their face amount 20Y5 May 1: Cash Bonds Payable 3.) Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) 20Y9 Nov 1: Bonds Payable Gain on Redemption of Bonds Cash
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
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…
O’Halloran Inc. produces and sells outdoor equipment. On July 1, Year 1, O’Halloran Inc. issued $32,000,000 of six-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of $33,546,022. 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.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. 3. Determine the total interest expense for Year 1. 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is…

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