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.
Need the answers asap! Thank you for help!
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.
Step by step
Solved in 2 steps