Make the necessary journal entries for: a. December 31, 2026. b. January 1, 2027. c. March 31, 2027. d. June 30, 2027.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![On January 1, 2025, Vaughn Corporation issued $4,180,000 of 10-year, 8% convertible debentures at 102. Interest is to be paid
semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 8 shares of Vaughn Corporation $102 par
value common stock after December 31, 2026.
On January 1, 2027, $418,000 of debentures are converted into common stock, which is then selling at $111. An additional
$418,000 of debentures are converted on March 31, 2027. The market price of the common stock is then $116. Accrued interest at
March 31 will be paid on the next interest date.
Bond premium is amortized on a straight-line basis.
Make the necessary journal entries for:
a.
December 31, 2026.
C. A
March 31, 2027.
b.
January 1, 2027.
d.
June 30, 2027.
Record the conversions using the book value method. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.)
No.
Date
Account Titles and Explanation
Dec. 31,
a.
2026
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5928db0e-96e5-485c-99fb-106c5bd1e954%2F37cb6f2a-dfbe-4728-a18c-f5ab9f3bf30e%2F3qkqnb_processed.jpeg&w=3840&q=75)
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