Lahey Corporation retires its $800,000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at redemption date is $829,960. The entry to record the redemption will include a O credit of $10,040 to Loss on Bond Redemption O debit of $10,040 to Premium on Bonds Payable O credit of $10,040 to Premium on Bonds Payable O debit of $10,040 to Loss on Bond Redemption

Lahey Corporation retires its $800,000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at redemption date is $829,960. The entry to record the redemption will include a O credit of $10,040 to Loss on Bond Redemption O debit of $10,040 to Premium on Bonds Payable O credit of $10,040 to Premium on Bonds Payable O debit of $10,040 to Loss on Bond Redemption

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hernandez company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. this price resulted in an effective-interest rate of 6% on the bonds. interest is payable annually on January 1. hernandex]z uses the effective-interest method to amortize bond premium or discount. prepare the journal entry to record the accrual interest and the premium amortization on December 31, 2022.
Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. what is the journal entry to record the sale of these bonds on January 1, 2022. what is the adjusting journal entry on December 31, 2022, to record interest expense. what is the journal entry on January 1, 2023, to record interest paid.
On January 1, 2025, Entity D issued $1,000,000 of 7%, 5-year bonds at 98. The bonds pay interest annually on December 31 and Entity D amortizes any premium or discount using the straight-line method. What is the annual interest expense on the bonds? $66,000. $74,000. $4,000. $70,000.
A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current year's interest date, after the bond interest was paid and after 40% of the total premium had been amortized, the company calls the bonds at $1,960,000. Prepare the journal entry to record the retirement of these bonds on January 1 of the current year.
On January 1, 2021, Solo Securities issued a $600, 000, 6%, three-year bonds payable. The market rate was 4% at issuance. Interest is paid semi-annually each June 30 and December 31. Solo Securities uses the effective interest method of amortization. create amortization table
Crane Company issued $255,000 , 7%, 10-year bonds on January 1, 2022, for $273,767 . This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Crane uses the effective-interest method to amortize bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Round answers to decimal places, e.g. 15,250 . Credit account titles are automatically indented when amount is entered . Do not indent manually
Lennar Inc. issued $100,000 of 10% bonds dated May 1, 2021 for $239,588. The bonds mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on October 31 and April 30. Lennar's fiscal year is the calendar year. Lennar uses the effective interest method of amortization. Required: 1. Prepare the journal entry to record the bond issuance on May 1, 2021. 2. Prepare the necessary journal entry on October 31, 2021 (1st payment). 3. Prepare the adjusting entry for the accrued interest (for 2 months) on December 31, 2021
Lewis Corporation issued $520,000 of 7%, 10-year bonds payable at a price of 93. The market interest rate at the date of issuance was 8%, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective-interest amortization method is OA OB. O C. Date Date Date Accounts and Explanation Interest Expense Discount on Bonds Payable Cash Accounts and Explanation Interest Expense Discount on Bonds Payable Cash Cach Accounts and Explanation Interest Expense Discount on Bonds Payable Debit 21,944 Debit 23,348 Debit 20,748 Credit 1,144 20,800 Credit 2,548 20,800 Credit 2,548 18 200 4 Next
On April 1, 2019, Ellison Co. issued 4-year, 7%, $100,000 face value bonds. The bonds were issued at 107.0919 , the interest payable annually on April 1. The bonds were sold to yield 5%. a) Complete the following table: Carrying Cash Interest Premium Date amount of Paid Expense Amortization bonds April 1 2019 April 1 2020 April 1 2021 April 1 2022 April 1 2023 b) Journalize the required entries on the following dates April 1, 2019 December 31, 2019 – adjusting entry April 1, 2020 2
Lincoln Company issued $110,000 of 10-year, 8% bonds payable on January 1, 2025. Lincoln Company pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line amortization method. The company can issue its bonds payable under various conditions. Read the requirements. Requirement 1. Journalize Lincoln Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at face value. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Journalize the issuance of the bond payable at face value. Date Jan. 1, 2025 Accounts Debit Credit
Riverbed Company issued $2,690,000, 9%, 20-year bonds on January 1, 2020, at 105. Interest is payable annually on January 1. Riverbed uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2020. (c) The payment of interest on January 1, 2021. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. Date Account Titles and Explanation Debit Credit > >
On January 1, 20x8, James Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end. The journal entry on December 31, 20x8, would include which of the following? Select one: a. Credit to Bonds Interest Payable for $26,000 b. Credit to Bonds Interest Payable for $25,000 c. Debit to Discount on Bonds Payable for $25,000 d. Credit to Discount on Bonds Payable for $25,000