On 31 December 20X7, a company has the following bond on the statement of financial position: Bond payable, 7%, interest due semi-annually on 31 Dec. and 30 June; maturity date, 30 June 20X11 Premium on bonds payable $5,600,000 47,040 $5,647,040 On 28 February 20X8, 20% of the bond was retired for $1,232,000 plus accrued interest to 28 February. Interest was paid on this date only for the portion of the bonds that were retired. Premium amortization was recorded on this date in the amount of $450, representing amortization on the retired debt only. Required: Provide the entries to record the bond interest on 28 February and the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your

On 31 December 20X7, a company has the following bond on the statement of financial position: Bond payable, 7%, interest due semi-annually on 31 Dec. and 30 June; maturity date, 30 June 20X11 Premium on bonds payable $5,600,000 47,040 $5,647,040 On 28 February 20X8, 20% of the bond was retired for $1,232,000 plus accrued interest to 28 February. Interest was paid on this date only for the portion of the bonds that were retired. Premium amortization was recorded on this date in the amount of $450, representing amortization on the retired debt only. Required: Provide the entries to record the bond interest on 28 February and the bond retirement. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your

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 the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays semiannual interest of $36,250 ($1,450,000 × 5% × ½), receiving cash of $1,408,720. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312…
On January 1, the first day of the fiscal year, a company issues a $550,000, 8%, 10-year bond that pays semiannual interest of $22,000 ($550,000 × 8% × ½ year), receiving cash of $550,000. (a) Journalize the entry to record the issuance of the bonds. fill in the blank 8dfaac02b05b066_2 fill in the blank 8dfaac02b05b066_4 (b) Journalize the entry to record the first interest payment on June 30. fill in the blank efa8e4f6603d061_2 fill in the blank efa8e4f6603d061_4 (c) Journalize the entry to record the payment of the principal on the maturity date. fill in the blank 71e811068fc505d_2 fill in the blank 71e811068fc505d_4
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On 31 December 20X7, Dunder Mifflin has the following bond on the statement of financial position: Bond payable, 8%, interest due semi-annually on 31 March and 30 September; maturity date, 30 September 20X10 $16,000,000 Discount on bonds payable (83,000) $15,917,000 Accrued interest payable of $400,000 was recorded on 31 December 20X7 ($16,000,000 × 10% × 3/12) and the bond discount was correctly amortized to 31 December 20X7. On 31 March 20X8, semi-annual interest was paid and the bond discount was amortized by a further $8,400. Then, 35% of the bond was retired at a cost of $5,488,000 (exclusive of interest). Required: Provide the entries to record the bond interest and retirement on 31 March 20X8.
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Instructions On the first day of the fiscal year, a company issues a $1,450,000, 5% , five-year bond that pays semiannual interest of $36,250 ($1,450,000 x 5% *%), receiving cash of $1,408,720. Journalize the first interest payment and the amortization of the related bond discount Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles Journal DATE DESCRIPTION JOURNAL POST REF DEBIT CREDIT