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May 1, 2020 Dec 31, 2020- Jan 1.2021 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Interest Payable Debit Credit Dec. 31, 2020 Jan 1, 2021 Apr. 1, 2021 Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Interest Payable Cash Bonds Payable Premium on Bonds Payable Interest Expense A Cash

May 1, 2020 Dec 31, 2020- Jan 1.2021 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Interest Payable Debit Credit Dec. 31, 2020 Jan 1, 2021 Apr. 1, 2021 Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Interest Payable Cash Bonds Payable Premium on Bonds Payable Interest Expense A Cash

FINANCIAL ACCOUNTING
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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Presented below are selected transactions on the books of Ivanhoe Corporation. May 1, 2020 Dec. 31 Jan. 1, 2021 April 1 Dec. 31 Date Bonds payable with a par value of $824,400, which are dated January 1, 2020, are sold at 107 plus accrued interest. They are coupon bonds, bear interest at 12% ( payable annually at January 1), and mature January 1, 2030. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization) Interest on the bonds is paid. Bonds with par value of $329,760 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year) Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers 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 amount is entered. Do not indent manually) Account Titles and Explanation Dec. 31, 2021 V May 1, 2020 Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Cash Interest Expense Cash Gain on Redemption of Bonds Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Debit 100 Credit
Transcribed Image Text:Presented below are selected transactions on the books of Ivanhoe Corporation. May 1, 2020 Dec. 31 Jan. 1, 2021 April 1 Dec. 31 Date Bonds payable with a par value of $824,400, which are dated January 1, 2020, are sold at 107 plus accrued interest. They are coupon bonds, bear interest at 12% ( payable annually at January 1), and mature January 1, 2030. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization) Interest on the bonds is paid. Bonds with par value of $329,760 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year) Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers 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 amount is entered. Do not indent manually) Account Titles and Explanation Dec. 31, 2021 V May 1, 2020 Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Cash Interest Expense Cash Gain on Redemption of Bonds Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Debit 100 Credit
Date May 1, 2020 Dec. 31, 2020 Jan 1, 2021 V Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Interest Payable Cash Debit Credit Dec. 31, 2020 Jan. 1, 2021 Apr. 1, 2021 V mpresse Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Interest Payable Cash Bonds Payable Premium on Bonds Payable Interest Expense A Cash Gain on Redemotion of Bonds
Transcribed Image Text:Date May 1, 2020 Dec. 31, 2020 Jan 1, 2021 V Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Interest Payable Cash Debit Credit Dec. 31, 2020 Jan. 1, 2021 Apr. 1, 2021 V mpresse Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) Interest Payable Cash Bonds Payable Premium on Bonds Payable Interest Expense A Cash Gain on Redemotion of Bonds
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