In each of the following independent cases, the company closes its books on December 31. 1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2019. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2022. The bonds yield 12%. Give entries through December 31, 2020. 2. Titania Co. sells $400,000 of 12% bonds on June 1, 2019. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2023. The bonds yield 10%. On October 1, 2020, Titania buys back $120,000 worth of bonds for $126,000 (includes accrued interest). Give entries through December 1, 2021. Instructions For the two cases, prepare all of the relevant journal entries from the time of sale until the date indicated. (Construct amortization tables where applicable.) Amortize premium or discount on interest dates and at year-end. (Assume that no reversing entries were made; round to the nearest dollar.)

In each of the following independent cases, the company closes its books on December 31. 1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2019. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2022. The bonds yield 12%. Give entries through December 31, 2020. 2. Titania Co. sells $400,000 of 12% bonds on June 1, 2019. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2023. The bonds yield 10%. On October 1, 2020, Titania buys back $120,000 worth of bonds for $126,000 (includes accrued interest). Give entries through December 1, 2021. Instructions For the two cases, prepare all of the relevant journal entries from the time of sale until the date indicated. (Construct amortization tables where applicable.) Amortize premium or discount on interest dates and at year-end. (Assume that no reversing entries were made; round to the nearest dollar.)

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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