Nicholas Ram Corporation have a $2,500,000 "bond issue" dated March 1, 2016 due in 15 years with an annual interest rate of 15%. Interest is payable March 1 and September 1. On August 1, 2016, the bond was sold for $2,578,750 plus accrued interest. Using the straight-line method, prepare the general journal entries for each of the following: a) The issuance of the bond on August 1, 2016. b) Payment of the semi-annual interest and the amortization of the premium on September 1, 2016. c) Accrual of the interest and the amortization of the premium on December 31, 2016. d) Payment of the semi-annual interest and the amortization of the premium on March 1, 2017.
Nicholas Ram Corporation have a $2,500,000 "bond issue" dated March 1, 2016 due in 15 years with an annual interest rate of 15%. Interest is payable March 1 and September 1. On August 1, 2016, the bond was sold for $2,578,750 plus accrued interest. Using the straight-line method, prepare the general journal entries for each of the following: a) The issuance of the bond on August 1, 2016. b) Payment of the semi-annual interest and the amortization of the premium on September 1, 2016. c) Accrual of the interest and the amortization of the premium on December 31, 2016. d) Payment of the semi-annual interest and the amortization of the premium on March 1, 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Note- Please provide the correct numbers, the last expert who did this was incorrect. Thanks
Transcribed Image Text:Nicholas Ram Corporation have a $2,500,000 "bond issue" dated March 1, 2016 due in 15 years with an annual interest rate of
15%. Interest is payable March 1 and September 1. On August 1, 2016, the bond was sold for $2,578,750 plus accrued interest.
Using the straight-line method, prepare the general journal entries for each of the following:
a)
The issuance of the bond on August 1, 2016.
b)
Payment of the semi-annual interest and the amortization of the premium on September 1, 2016.
c)
Accrual of the interest and the amortization of the premium on December 31, 2016.
d)
Payment of the semi-annual interest and the amortization of the premium on March 1, 2017.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education