Nocioni Company issued $1,000,000 of bonds on January 1, 2010.Instructions Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100,(2), 98, and (3) 103.Prepare the journal entry to record the retirement of the bonds at maturity, assuming the bonds were issued at 100.Prepare the journal entry to record the retirement of the bonds before maturity at 98. Assume the balance in Premium on Bonds Payable is $9,000.Prepare the journal entry to record the conversion of the bonds into 30,000 shares of $10 par value common stock. Assume the bonds were issued at par.

Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Answered: Nocioni Company issued $1,000,000 of…

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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Nocioni Company issued $1,000,000 of bonds on January 1, 2010.

Instructions

Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100,(2), 98, and (3) 103.
Prepare the journal entry to record the retirement of the bonds at maturity, assuming the bonds were issued at 100.
Prepare the journal entry to record the retirement of the bonds before maturity at 98. Assume the balance in Premium on Bonds Payable is $9,000.
Prepare the journal entry to record the conversion of the bonds into 30,000 shares of $10 par value common stock. Assume the bonds were issued at par.

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