On AUG 01, 2022, Corp issued $600,000, 7%, 10-year bonds at face value. Interest is payable annually on AUG 01. Corp's year-end is DEC 31. Interest is still expressed as an ANNUAL rate, 7% per year. Pay attention to the number of months applicable when computing the adjustment. (FYI: count months on your fingers). Instructions Prepare journal entries to record the following events. a) The issuance of the bonds. b) The annual accrual of interest on December 31, 2022. c) The payment of interest on August 1, 2023. Aug 01 2022 Dec 31 2022 Aug 01 2023

On AUG 01, 2022, Corp issued $600,000, 7%, 10-year bonds at face value. Interest is payable annually on AUG 01. Corp's year-end is DEC 31. Interest is still expressed as an ANNUAL rate, 7% per year. Pay attention to the number of months applicable when computing the adjustment. (FYI: count months on your fingers). Instructions Prepare journal entries to record the following events. a) The issuance of the bonds. b) The annual accrual of interest on December 31, 2022. c) The payment of interest on August 1, 2023. Aug 01 2022 Dec 31 2022 Aug 01 2023

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,641,812. Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments.
On the first day of the fiscal year, a company issues a $784,000, 6%, 10-year bond that pays semiannual interest of $23,520 ($784,000 x 6% x 1/2), receiving cash of $823,200. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. OUD
On January 1, 2020, Pharoah Company, a calendar-year company, issued $2160000 of notes payable, of which $540000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is: O Current liabilities, $540000; Long-term Debt, $1080000. O Current liabilities, $2160000. O Current liabilities, $540000; Long-term Debt, $1620000. O Long-term debt, $2160000.
On January 1, 2020, Swifty Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds were issued for $423,784, and pay interest each July 1 and January 1. Swifty uses the effective-interest method.Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%.
On January 1, 2018, Technicians Credit Union, (TCU), issued 8%, 20-year bonds payable with a face value of $900,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 108. How do I Journalize the payment of interest and amortization on December 31, 2018?
On January 1, 2020, Grouper Corporation issued $480,000 of 7% bonds, due in 10 years. The bonds were issued for $515,707, and pay interest each July 1 and January 1. The effective-interest rate is 6%.Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Grouper uses the effective-interest method
On the first day of the fiscal year, a company issues a $883,000, 10%, 10-year bond that pays semiannual interest of $44,150 ($883,000 x 10% x 1/2), receiving cash of $927,200. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select -
On August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Bramble’s year-end is December 31. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 1 enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an…
On August 15, 2022, Pharoah Company signs a $248000, 7%, twelve-month note payable. Which of the following entries correctly records the accrued interest on December 31, 2022? Dr Interest Expense $5786.67 Cr Interest Payable $5786.67 Dr Interest Expense $10850.00 Cr Interest Payable $10850.00 Dr Interest Expense $17360.00 Cr Interest Payable $17360.00 Dr Interest Expense $6510.00 Cr Interest Payable $6510.00
Please help me with show all calculation thanku
sheridan Limited issued $4,500,000 10-year, 8% bonds on January 1, 2021, when the market interest rate was 9%. The bonds were sold at 94. Interest is payable semi-annually on July 1 and December 31. Sheridan has a December 31 year e Provide the journal entry to record the payment of interest on July 1, 2021. please only round final answers to 2 decimal places
On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays semiannual interest of $33,495 ($957,000 x 7% x 1/2), receiving cash of $1,004,900. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank