Excalibur Incorporated issued $170,000 of 5%, four-year bonds on January 1. The bonds pay interest semiannually on June 30 and December 31. They were issued at par value. Prepare the journal entry the Corporation will record on their books if they repurchase the bonds on January 1 two years later at 101% after the semi-annual interest payment was made. (Hint: use the Account List - click to pop open to help you with your journal entries) Date 01/01 Description to record the repurchase of bonds. Debit Credit

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...
Question

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

Excalibur Incorporated issued $170,000 of 5%, four-year bonds on January 1. The bonds pay
interest semiannually on June 30 and December 31. They were issued at par value.
Prepare the journal entry the Corporation will record on their books if they repurchase the bonds on
January 1 two years later at 101% after the semi-annual interest payment was made. (Hint: use the
Account List - click to pop open to help you with your journal entries)
Date
01/01
Description
to record the repurchase of bonds.
Debit
Credit
Transcribed Image Text:Excalibur Incorporated issued $170,000 of 5%, four-year bonds on January 1. The bonds pay interest semiannually on June 30 and December 31. They were issued at par value. Prepare the journal entry the Corporation will record on their books if they repurchase the bonds on January 1 two years later at 101% after the semi-annual interest payment was made. (Hint: use the Account List - click to pop open to help you with your journal entries) Date 01/01 Description to record the repurchase of bonds. Debit Credit
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,