Instructions Chart of Accounts AnalysisGeneral JournalPresent Value TablesInstructionsBarnett Industries, Inc., issued $600,000 of 8% bonds on January 1, Year 1. The bonds pay interest semiannually on July 1 and January 1. The maturity date on these bonds isDecember 31, Year 10. The firm uses the effective interest method of amortizing discounts and premiums. The bonds were sold to yield an effective interest rate of 9%. Barnett incurredlegal and investment banking fees of $22,000 in issuing the bonds and amortizes these costs annually on a straight-line basis.Required:1. Calculate the selling price of the bonds.2. Prepare journal entries for the issuance of the bonds and debt issuance costs.AnalysisShaded cells have feedback.1. Calculate the selling price of the bonds.General Journal12DATEJan. 1CashACCOUNT TITLEDiscount on Bonds Payable3Bonds Payable4Deferred Debt Issuance Costs5CashGENERAL JOURNALAdditional InstructionShaded$578,000.00 XPOST. REF.DEBIT✓✓✓514,403.40600,000.0022,000.0022,000.00Points:10.1/12

The objective of the question is to calculate the selling price of the bonds and prepare the journal…

Answered: Instructions Chart of Accounts Analysis…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Entries for Issuing and Calling Bonds; Gain Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $980,000 of 10-year, 11% callable bonds on May 1, 20Y1, at their face amount, 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: 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 20Y5 Nov. 1 Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.) Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank. 20Y1, May 1 Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1, Nov. 1 Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.) If an amount box does not require an entry, leave it…
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Entries for Issuing and Calling Bonds; Gain Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $771,000 of 25-year, 13% callable bonds on May 1, 20Y1, at their face amount, 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: 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 20Y5 Nov. 1 Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) Question Content Area Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank. 20Y1, May 1 - Select - - Select - - Select - - Select - Question Content Area Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1, Nov. 1 - Select -…
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Subject: accounting
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