Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet 1 Record the issue of bonds with a par value of $325,000 on January 1, 2021 at an issue price of $292,181. Note: Enter debits before credits. Date January 01 General Journal Debit Credit

Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet 1 Record the issue of bonds with a par value of $325,000 on January 1, 2021 at an issue price of $292,181. Note: Enter debits before credits. Date January 01 General Journal Debit Credit

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

Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,987,457. Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments.
Cucumber Electric sold $3,300,00, 8%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Cucumber Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 104. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. Date Account Titles and Explanation Debit Credit 01/01/22 Cash 3,432,000 Bonds Payable 3,300,000 Premium on Bonds Payable 132,000 A) Prepare a bond premium amortization schedule for the first 4 interest periods. Annual Interest Periods Interest to Be Paid Interest Expense to be recorded Premium Amortization Unamortized Premium Bond Carrying Value Issue Date 1 2 3 4 B) Prepare the journal entries for interest and the amortization of the premium in 2022…
Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $2,500,000 par value, mature in four years, and pay 6% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1.2. Record the entry for the first semiannual interest payment and the second semiannual interest payment.3. Record the entry for the maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded).
Hillside issues $2,900,000 of 9%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,549,590.Required:1. Prepare the January 1 journal entry to record the bonds’ issuance.2(a) For each semiannual period, complete the table below to calculate the cash payment.2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization.2(c) For each semiannual period, complete the table below to calculate the bond interest expense.3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.4. Prepare the first two years of a straight-line amortization table.5. Prepare the journal entries to record the first two interest payments.
Quick Lane Auto Service issued $50,000, 10-year bonds on January 1, 2021. The stated rate of interest on the bonds is 8% payable annually on 12/31. Provide the requested information for the bonds immediately after issuance (January 1, 2021) under each of the three independent scenarios described below. Bonds Payable, net is the same terminology as carrying value discussed in class. Hint - if you are having trouble figuring out what 100, 104, and 98 mean, please consult the Gary Worksheet or the reading of this chapter on Canvas. a) b) c) Bonds Payable Unamortized Premium or Discount Bonds Payable, net Case 1 Bonds sold at 100 50,000 0 Case 2 Bonds sold at 104 50,000 Case 3 Bonds sold at 98 50,000
Required information Skip to question [The following information applies to the questions displayed below.] Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. Required:1. Prepare the January 1 journal entry to record the bonds' issuance. Record the issue of bonds with a par value of $325,000 on January 1, 2019 at an issue price of $292,181. Note: Enter debits before credits. Date General Journal Debit Credit January 01
Kingbird, Inc. issues $4.1 million, 10-year. 9% bonds at 102, with interest payable on January 1. The straight-line method is used to amortize bond premium (a) Your answer is partially correct Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Tities and Explanation Jan 1 Cash Premium on Bonds Payable Bons Payable Debit 369000 82000 Credit 4100000
Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%. 2. Determine the total bond interest expense to be recognized over the bonds' life.
Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $2,600,000 par value, mature in four years, and pay 9% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1.2. Record the entry for the first semiannual interest payment and the second semiannual interest payment.3. Record the entry for the maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded).
Required information [The following information applies to the questions displayed below.] Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,671,990. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C View…
Wondering if I did this correctly
Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,641,812. Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments.