Mitchell Inc. received $568,547 from the issuance of 600, 6%,$1,000 bonds on January 1, 2020. The bonds pay cash interestsemiannually each July 1, and January 1, and were issued to yield &The bonds mature January 1, 2023, and the company uses theeffective interest method to amortize bond discounts or premiumsThe journal entry on July 1, 2020 to record the interest paymentincludesOA credit to Cash account by $22,742.A debit to Premium on Bonds Payable account by $4,742.A credit to Cash account by $18,000.OA credit to Interest Revenue account by $22,742.

First, let's compute if there's a discount or premium on the bonds issued. Get the difference…

Answered: Mitchell Inc. received $568,547 from…

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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On March 31, 2021, Gardner Corporation received authorization to issue $90,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated March 31, 2021, but the bonds were not issued until April 30, 2021 They were issued at face value. a. Prepare the journal entry at April 30, 2021, to record the sale of the bonds. b. Prepare the journal entry at September 30, 2021, to record the semiannual bond interest payment. c. Prepare the adjusting entry at December 31, 2021, to record bond interest expense accrued since September 30, 2021 (Assume that no monthly adjusting entries to accrue interest expense had been made prior to December 31, 2021) (If no entry is required for a transaction/event, select "No journal entry required in the first account field) View transaction list Journal entry worksheet 1 2 3 Record the sale of bonds. Date Apr 30, 2021 Note: Enter debits before credits General Journal Debil Credit
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On July 1, 2018, ABC Co. issued $6,000,000, 6%, 4-year bonds. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid semiannually on July 1 and January 01. The company uses the effective-interest method of amortization. Required: For ABC Co. answer the following independent requirements: JORARE STON a. Prepare the necessary journal entry on July 1, 2018. b. Assume that the accounting date for ABC Co. is December 31, prepare journal entry on December 31, 2018. cessary c. Assume that the bond was issued on September 30, 2018, prepare the journal entry on January 01, 2019. d. Assume that the accounting date for ABC Corporation is November 30, prepare the journal entry on November 30, 2018.
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