On January 1 of this year, Bocchini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1, hada yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Use Table 8C.1. Table 8C.2.Required:1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journalentry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millionsrounded to the nearest whole dollar.)Answer is complete but not entirely correct.No1DateJanuary 01CashGeneral JournalBonds payablePremium on bonds payableDebitCredit10,167,75210,000,000167,7522. Prepare the journal entry to record the interest payment on December 31 of this year. Use the effective-interest method ofamortization. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round timevalue factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.)3.Answer is complete but not entirely correct.NoDateGeneral JournalDecember 31Interest expensePremium on bonds payableCashDebit813,42011,580Credit825,000Show how the interest expense and the bonds payable should be reported on the financial statements for this year. (Enter youranswers in dollars not in millions rounded to the nearest whole dollar.)Answer is complete but not entirely correct.BOCHINI CORPORATIONFinancial StatementsFor year ended December 31Statement of earnings:Interest expenseStatement of financial positionLong-term liabilities:Bonds payable813,42010,000,000

Bonds allow the issuer of the bonds such as companies to acquire funds for meeting the business…

On January 1 of this year, Bocchini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1, had a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Use Table 8C1, Table 8C.2. Required: 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Answer is complete but not entirely correct. No 1 Date January 01 Cash General Journal Bonds payable Premium on bonds payable Debit Credit 10,167,752 10,000,000 167,752

On January 1 of this year, Bocchini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1, had a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Use Table 8C1, Table 8C.2. Required: 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Answer is complete but not entirely correct. No 1 Date January 01 Cash General Journal Bonds payable Premium on bonds payable Debit Credit 10,167,752 10,000,000 167,752

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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