InstructionsAdele Corp., a wholesaler of music equipment, issued $31,400,000 of 20-year, 5% callablebonds on March 1, 20Y1, at their face amount, with interest payable on March 1 andSeptember 1. The fiscal year of the company is the calendar year.Journalize the entries to record the following selected transactions Refer to the Chart ofAccounts for exact wording of account fifles20Y1Mar.Sept.20Y5Sept.Chart of Accounts Journal1 Issued the bonds for cash at their face amount.Paid the interest on the bonds11Called the bond issue at 103, the rate provided in the bondindenture. (Omit entry for payment of interest.)X oCJournalJournalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.DATEDESCRIPTIONJOURNALPOST REFDEBITCREDIT

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Instructions Instructions Chart of Accounts Journal Adele Corp., a wholesaler of music equipment, issued $31,400,000 of 20-year, 5% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year 20Y1 Mar. Sept. 20Y5 Sept. Journalize the entries to record the following selected transactions Refer to the Chart of Accounts for exact wording of account fiffles 1 Issued the bonds for cash at their face amount 1 Paid the interest on the bonds 1 Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.) X

Instructions Instructions Chart of Accounts Journal Adele Corp., a wholesaler of music equipment, issued $31,400,000 of 20-year, 5% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year 20Y1 Mar. Sept. 20Y5 Sept. Journalize the entries to record the following selected transactions Refer to the Chart of Accounts for exact wording of account fiffles 1 Issued the bonds for cash at their face amount 1 Paid the interest on the bonds 1 Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.) X

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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ries for issuing bonds Instructions Chart of Accounts Journal structions homson Co. produces and distributes semiconductors for use by computer anufacturers. Thomson Co. issued $240,000 of 10-year, 9% bonds on May 1 the current year at face value, with interest payable on May 1 and November The fiscal year of the company is the calendar year. ournalize the entries to record the following selected transactions for the current ear. Refer to the Chart of Accounts for exact wording of account titles. May Nov. Dec. erk My Work 1 Issued the bonds for cash at their face amount. Paid the interest on the bonds. 31 Recorded accrued interest for two months. 1 Journal 1 2 3 4 5 6 7 DATE DESCRIPTION Adjusting Entries JOURNAL POST. REF. DEBIT
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Instructions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year. Year 1 July 1 Issued $75,100,000 of 20-year, 8% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $62,213,861. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $440,000 by issuing a six-year, 7% installment note to Nicks Bank. The note requires annual payments of $92,310, with the first payment occurring on September 30, Year 2. Dec. 31 Accrued S7,700 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31 Paid the semiannual interest on the bonds. The bond discount amortization of S322,153 is combined with the semiannual interest payment, Year 2
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Favreau Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Favreau Corporation issued $3,500,000 of 7-year, 9% bonds at a market (effective) interest rate of 6%, receiving cash of $4,093,045. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1 and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $4,093,045 rather than for the face amount of $3,500,000? The market rate of interest is the contract rate of interest.
Required information Skip to question [The following information applies to the questions displayed below.] Dunphy Company issued $50,000 of 7.0%, 10-year bonds at par value on January 1. Interest is paid semiannually each June 30 and December 31. Analyze transactions by showing their effects on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each transaction.
Liability Transactions The following items were selected from among the transactions completed by Sherwood Co. during the current year: Feb. 15. Purchased merchandise on account from Kirkwood Co., $144,000, terms n/30. Mar. 17. Issued a 60-day, 8% note for $144,000 to Kirkwood Co., on account. May 16. Paid Kirkwood Co. the amount owed on the note of March 17. June 15. Borrowed $138,000 from Triple Creek Bank, issuing a 60-day, 9% note. July 21. Purchased tools by issuing a $105,000, 90-day note to Poulin Co., which discounted the note at the rate of 9%. Aug. 14. Paid Triple Creek Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $138,000. (Journalize both the debit and credit to the notes payable account.) Oct. 13. Paid Triple Creek Bank the amount due on the note of August 14. Oct. 19. Paid Poulin Co. the amount due on the note of July 21. Dec. 1. Purchased office equipment from Greenwood Co. for $108,000,…
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Chin receiving cash of $9,594,415. Question Content Area a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts…
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Entries for Installment Note Transactions On January 1, Year 1, Luzak Company issued a $71,000, 4-year, 11% installment note to McGee Bank. The note requires annual payments of $22,885, beginning on December 31, Year 1. Journalize the entries to record the following. Issued the notes for cash at its face amount. Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. For a compound transaction, if an amount box does not require an entry, leave it blank. Paid the annual payment on the note, including $2,268 of interest. The remainder of the payment reduced the principal balance on the note. For a compound transaction, if an amount box does not require an entry, leave it blank.
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Instructions Chart of Accounts Journal Final Question Instructions Favreau Corporation wholesales repair products to equipment manufacturers. On April 1. Year 1, Favreau Corporation issued $12,700,000 of five-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of S13,704,946. Interest is payable semiannually on April 1 and October 1. Required: a. Journalize the entries to record the following. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 1. Issuance of bonds on April 1. 2. First interest payment on October 1 and amortIzation of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual…
Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $5,110,000 of five-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $4,742,651. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $120,000 by issuing a 10-year, 7% installment note to Nicks Bank. The note requires annual payments of $17,085, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $2,100 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $36,735 is combined with the semiannual interest payment. Year 2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $36,735 is combined with the semiannual interest…
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