Maria Miller Company issued $468,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payablesemiannually on July 1 and January 1. Maria Miller Company uses the effective-interest method of amortization forbond premium or discount. Assume an effective yield of 9.7705%.Click here to view factor tables.Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places,e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "NoEntry" for the account titles and enter 0 for the amounts. Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. List all debit entries before creditentries.)a.The issuance of the bonds.b.The payment of interest and related amortization on July 1, 2025.C.The accrual of interest and the related amortization on December 31, 2025.DateAccount Titles and Explanation1/1/25÷7/1/2512/31/25Debit

Given information:Bond face value: $468,000Coupon rate: 10%Term: 20 yearsIssue date: January 1,…

Answered: Maria Miller Company issued $468,000 of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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Mary Smith Company issued $396,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Mary Smith Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Click here to view factor tables. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) a. b. C. The issuance of the bonds. The payment of interest and related amortization on July 1, 2025. The accrual of interest and the related amortization on December 31, 2025. Date 1/1/25 + Account Titles and Explanation Debit Credit 11₁
Laura Hall Company issued $660,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Laura Hall Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Click here to view factor tables. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) a. The issuance of the bonds. b. The payment of interest and related amortization on July 1, 2025. C The accrual of interest and the related amortization on December 31, 2025. Date Account Titles and Explanation Debit Credit
Lisa Anderson Company issued $516,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Lisa Anderson Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705% Click here to view factor tables. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, eg. 1.251247 and final answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) a. The issuance of the bonds. b. The payment of interest and related amortization on July 1, 2025. с The accrual of interest and the related amortization on December 31, 2025. Date Account Titles and Explanation Debit Credit
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On January 1, Year 1, Kenneth Cole Inc. issued $2,000,000, 5%, 10-year bonds, with interest payable on June 30, and December 31 to yield 6%. The bonds were issued for $1,851,234. : Given the above information, Prepare the amortization schedule for Year 1 and Year 2 using the effective interest rate method. Use the following format and round figures to nearest dollar. Date Cash Paid Interest Exp Amortization Bond Carrying Value
Swifty Company issued $576,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Swifty Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%.Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020. Date Account Titles and Explanation Debit Credit 1/1/20 enter an account title enter a debit amount enter a credit amount…
Peplum Show Company issued $600,000 of 10%, 20-year bonds on January 1, 2018 at 102. Interest is payable semi-annually on July 1 and January 1. Peplum Show company uses effective-interest method for amortization of bon discount or premium as the case may be. Assuming effective yield of 9.7705%, prepare journal entry for payment of interest and related amortization on July 1, 2018. Date Account Detail & Explanation Debit Credit | 1/7/2018 Interest Expense $30,000 $102 Premium on bonds payable Cash $30,102| а. Date Account Detail & Explanation Debit Credit |1/7/2018 Interest Expense $60,000 $102 Premium on bonds payable b. Cash $60,102| Date Account Detail & Explanation Debit Credit | 1/7/2018 Interest Expense $29,898| $102 Premium on bonds payable Cash $30,000 с. Date Account Detail & Explanation Debit Credit | 1/7/2018 Interest Expense $29,312 Premium on bonds payable $102| d. Cash $29,414|
Blue Company issued $ 396,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Blue Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%.Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020.
Whispering Company issued $480,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Whispering Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, eg. 1.251247 and final answer to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (Ь) The payment of interest and related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020. Date Account Titles and Explanation Debit Credit 1/1/20 7/1/20 12/31/20
Grocery Corporation received $316,189 for 9.00 percent bonds issued on January 1, 2021, at a market interest rate of 6.00 percent. The bonds had a total face value of $259,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Required: Prepare the following table for each account by indicating (a) whether it is reported on the Balance Sheet (B/S) or Income Statement (I/S); (b) the dollar amount by which the account increases, decreases, or does not change when Grocery Corporation issues the bonds; and (c) the direction of change in the account [increase, decrease, or no change] when Grocery Corporation records the interest payment on December 31.
On January 1, 2018, for $17.4 million, Cenotaph Company purchased 8% bonds, dated January 1, 2018, with a face amount of $19.4 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. Required: 1. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record interest on June 30, 2018, using the effective interest method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 1 > Record the entry to interest on June 30, 2018, using the effective interest method. Note: Enter debits before credits. Date General…

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