The Gonzalez Group issued $900,000 of 11% bonds on June 30, 2024, for $977,220.• The bonds were dated on June 30 and mature on June 30, 2044 (20 years).• The market yield for bonds of similar risk and maturity is 10%.• Interest is paid semiannually on December 31 and June 30.Required:1. to 3. Prepare the journal entries to record their issuance by The Gonzalez Group on June 30, 2024, Interest on Decand interest on June 30, 2025 (at the effective rate).Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listJournal entry worksheet3<12Record the issuance of the bond on June 30, 2024.Note: Enter debits before credits.DateJune 30, 2024CashGeneral JournaliBonds payablePremium on bonds payableDebit977,220Credit900,00077,220PrevD3 of 11wwwwwwNext Journal entry worksheetRecord the interest on December 31, 2024 (at the effective rate).DateDecember 31,2024Note: Enter debits before credits.Record entryView transaction list22Journal entry worksheet< 13DateJune 30, 2025Record entryInterest expensePremium on bonds payableCash3Note: Enter debits before credits.General JournalRecord the interest on June 30, 2025 (at the effective rate).Clear entryGeneral JournalClear entryDebitDebitCreditCreditView general journalView general journal>

The bonds are recorded as long term liabilities in the books. The bonds are issued at premium when…

Answered: he Gonzalez Group issued $900,000 of…

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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The Gonzalez Group issued $830,000 of 9% bonds on June 30, 2024, for $912,141. • The bonds were dated on June 30 and mature on June 30, 2044 (20 years). • The market yield for bonds of similar risk and maturity is 8%. • Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gonzalez Group on June 30, 2024, interest on December 31, 2024 and interest on June 30, 2025 (at the effective rate). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 Record the issuance of the bond on June 30, 2024. Date June 30, 2024 Note: Enter debits before credits. General Journal Debit Credit
On January 1, 2024, Instaform, Incorporated, issued 14% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2043 (20 years). The market yield for bonds of similar risk and maturity is 16%. Interest is paid semiannually. Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b. Prepare the journal entry to record their issuance by Instaform. 2-a. Assume the market rate was 12%. Determine the price of the bonds at January 1, 2024. 2-b. Assume the market rate was 12%. Prepare the journal entry to record their issuance by Instaform. 3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.
Prepare journal entries to record the following transactions relating to long-term bonds of Lancaster Inc. Show calculations and round to the nearest dollar. a) On June 1, 2023, Lancaster Inc. issued $400,000, 6% bonds for $391,760, including accrued interest. The bonds were dated February 1, 2023, and interest is payable semi-annually on February 1 and August 1 with the bonds maturing on February 1, 2033. The bonds are callable at 102. b) On August 1, 2023, Lancaster paid the semi-annual interest and recorded the amortization of the discount or premium, using straight-line amortization. c) On February 1, 2025, Lancaster paid the semi-annual interest and recorded amortization of the discount or premium. Assume that a reversing entry was made on January 1, 2025. d) The company then purchased $240,000 of the bonds at the call price Do not give…
Bombay Corporation issued 8% bonds on January 1, 2021, with a face value of $700,000, the market yield for bonds of similar risk and maturity was 10%. The bonds mature December 2023 (3 years). Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds on January 31, 2021. 2. Prepare the journal entry to record their issuance by Bombay on January 1, 2021. (See the below template) 3. Prepare an amortization schedule that shows the effective interest rate each period. 4. Prepare the journal entry to record interest on June 30, 2022. Date Cash Payment Effective Interest Increase in balance. Discount Reduction Outstanding Balan
On June 30, 2021, Highland Co. issued $600,000, 8% bonds, due to mature on June 30, 2026. Interest is paid semi-annually on December 31 and June 30. Similar bonds at the time of sale were being traded at a market rate of 7%. Required: Calculate the value of the bond at the time of issuance, and record the initial journal entry. Assuming that Highland has a June 30 year end, provide any additional required entries (other than in part a) until June 30, 2022.
Marigold Corp. issued 3, 300 7%, 5-year, $1,000 bonds dated January 1, 2022, at face value. interest is paid each january 1. Prepare the journal entry to record the sale of these bonds on January 1, 2022.
The Gorman Group issued $930,000 of 11% bonds on June 30, 2021, for $1,009,794. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. Required: 1.to3. Prepare the journal entries to record their issuance by The Gorman Group on Jun 30, 2021, interest on December 31, 2021, and interest on June 30, 2022 (at the effective rate). Record the issuance of the bond on June 30, 2021. Record the interest on December 31, 2021 (at the effective rate). Record the interest on June 30, 2022 (at the effective rate).
1. Santos SA issues $300,000 in bonds dated January 1, 2022, due in five years with 9 percent interest payable annually on January 1. At the time of issue, the market rate for such bonds is 9percent.a) Illustrate the bond in line as principal invested and interest rate.b) Check the value of bound is it sold at par value.c) Register accounting transactions on journal entries.
When Patey Pontoons issued 10% bonds on January 1, 2024, with a face amount of $880,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2027 (4 years). Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2024. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2024. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2024. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2024? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2024? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2027 Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1.…
When Patey Pontoons issued 10% bonds on January 1, 2024, with a face amount of $880,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2027 (4 years). Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2024. 2. Prepare the journal entry to record their issuance by Patey on January 1, 2024. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2024. 5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2024? 6. What is the amount related to the bonds that Patey will report in its income statement for the year ended December 31, 2024? (Ignore income taxes.) 7. Prepare the appropriate journal entries at maturity on December 31, 2027 Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1.…
On January 1st 2023, MSI Inc issues $500,000 4%, 6 year bonds at face value. Prepare the entry to record the issuance of the bonds.
On January 1, 2021, Hobart Services Ltd. issued $200,000 of 7% bonds at 98.Bonds are due January 1, 2026, with interest payable semi-annually on July 1 andJanuary 1.Required:• Calculate the bond price & the effective interest rate for the semi-annualinterest payments• Prepare a bond amortization schedule for the life of the bond• Prepare all the journal entries relating to the bond for 2021• Prepare a classified partial balance sheet as at December 3

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