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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 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 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 date 1 January 01 Cash General Journal Bonds payable Premium on bonds payable Debit 10,167,833 Credit 10,000,000 × 167,833 × 2. Prepare the journal entry to record the interest payment on December 31 of this year. Use the effective-interest method of amortization. (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 date General Journal 1 December 31 Interest expense Premium on bonds payable Cash Debit Credit 813,427 ▼ x 11,573 825,000 ✓ 3. Show how the interest expense and the bonds payable should be reported on the financial statements for this year. (Enter your answers in dollars not in millions rounded to the nearest whole dollar.) × Answer is complete but not entirely correct. BOCHINI CORPORATION Financial Statements For year ended December 31 Statement of earnings: Interest expense Statement of financial position Long-term liabilities: Bonds payable $ 813,827 x $ 10,000,000

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 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 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 date 1 January 01 Cash General Journal Bonds payable Premium on bonds payable Debit 10,167,833 Credit 10,000,000 × 167,833 × 2. Prepare the journal entry to record the interest payment on December 31 of this year. Use the effective-interest method of amortization. (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 date General Journal 1 December 31 Interest expense Premium on bonds payable Cash Debit Credit 813,427 ▼ x 11,573 825,000 ✓ 3. Show how the interest expense and the bonds payable should be reported on the financial statements for this year. (Enter your answers in dollars not in millions rounded to the nearest whole dollar.) × Answer is complete but not entirely correct. BOCHINI CORPORATION Financial Statements For year ended December 31 Statement of earnings: Interest expense Statement of financial position Long-term liabilities: Bonds payable $ 813,827 x $ 10,000,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...
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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 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 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 date 1 January 01 Cash General Journal Bonds payable Premium on bonds payable Debit 10,167,833 Credit 10,000,000 × 167,833 × 2. Prepare the journal entry to record the interest payment on December 31 of this year. Use the effective-interest method of amortization. (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 date General Journal 1 December 31 Interest expense Premium on bonds payable Cash Debit Credit 813,427 ▼ x 11,573 825,000 ✓
Transcribed Image Text: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 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 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 date 1 January 01 Cash General Journal Bonds payable Premium on bonds payable Debit 10,167,833 Credit 10,000,000 × 167,833 × 2. Prepare the journal entry to record the interest payment on December 31 of this year. Use the effective-interest method of amortization. (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 date General Journal 1 December 31 Interest expense Premium on bonds payable Cash Debit Credit 813,427 ▼ x 11,573 825,000 ✓
3. Show how the interest expense and the bonds payable should be reported on the financial statements for this year. (Enter your answers in dollars not in millions rounded to the nearest whole dollar.) × Answer is complete but not entirely correct. BOCHINI CORPORATION Financial Statements For year ended December 31 Statement of earnings: Interest expense Statement of financial position Long-term liabilities: Bonds payable $ 813,827 x $ 10,000,000
Transcribed Image Text:3. Show how the interest expense and the bonds payable should be reported on the financial statements for this year. (Enter your answers in dollars not in millions rounded to the nearest whole dollar.) × Answer is complete but not entirely correct. BOCHINI CORPORATION Financial Statements For year ended December 31 Statement of earnings: Interest expense Statement of financial position Long-term liabilities: Bonds payable $ 813,827 x $ 10,000,000
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