On December 31, 20x0, the Robin Corporation issues $5,000,000 of 5% bonds. The bonds are due on December 31, 20x10 and were issued to yield 4.6%. The bonds pay interest semi-annually on June 30 and December 31. Bond issue costs of $53,000 were incurred. Required – a) Prepare all journal entries relative to this bond issue for the years ended December 31, 20x0 and December 31, 20x1. b) Assume that on July 2, 20x7, Robin repurchases 45% of the bond issue at 105. Prepare the journal entry on July 2, 20x7. Also prepare the journal entry on December 31, 20x7.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Answer both the subparts a,b
On December 31, 20x0, the Robin Corporation issues $5,000,000 of 5% bonds. The
bonds are due on December 31, 20x10 and were issued to yield 4.6%. The bonds pay
interest semi-annually on June 30 and December 31. Bond issue costs of $53,000 were
incurred.
Required –
a) Prepare all journal entries relative to this bond issue for the years ended
December 31, 20x0 and December 31, 20x1.
b) Assume that on July 2, 20x7, Robin repurchases 45% of the bond issue at 105.
Prepare the
December 31, 20x7.
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