**Journal Entry for Semiannual Receipt of Interest****Scenario:**On May 1, Cedar Inc. purchases $100,000 of 10-year, Madison Corporation 6% bonds dated March 1 at 100 plus accrued interest.**Task:**Journalize the entry for the semiannual receipt of interest on September 1. If an amount box does not require an entry, leave it blank.**Journal Entry Table:**| Account | Debit ($) | Credit ($) ||-------------------------|-----------|------------|| [Dropdown for Account] | [Amount] | [Amount] || [Dropdown for Account] | [Amount] | [Amount] || [Dropdown for Account] | [Amount] | [Amount] |**Notes:**- The journal entry requires selecting the appropriate accounts and entering the corresponding debit and credit amounts. If a box doesn't require an entry, it should be left blank.- This activity allows learners to apply accounting principles related to bond investments and interest accrual.

Semi annual interest is payable on Sept 1 and hence also on March 1. For Interest Receipt entry, we…

Answered: On May 1, Cedar Inc. purchases $100,000…

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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Assume that on July 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they mature. Complete the necessary December 31 entry to record receipt of interest by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 x 8% x 1/2), receiving cash of $884,174. Journalize the entry for the issuance of the bonds. If an amount box does not require an entry, leave it blank.
THIS QUESTION WILL ALSO BE CHECKED MANUALLY (to make adjustments for typos). QUESTION 9 On the first day of the fiscal year, a company issues a $828,000, 12%, 10-year bond that pays semiannual interest of $49,680, receiving cash of $869,400. Journalize the entry for the first interest payment and amortiation of premium using the straight-line method and the chart of accounts below. Bonds Payable Cash Discount on Bonds Payable Interest Revenue Gain on Redemption of Bonds Interest Expense Interest Payable Loss on Redemption of Bonds Premiun on Bonds Payable Enter your answers into the table below. Key the account names carefully (exactly as shown above) and follow formatting instructions below. DO NOT USE A DECIMAL WITH ZEROES FOR WHOLE DOLLAR AMOUNTS AND USE COMMAS APPROPRIATELY. WHEN THE DEBIT/CREDIT DOES NOT REQUIRE AN ENTRY, LEAVE IT BLANK. Account Debit Credit THIS QUESTION WILL ALSO BE CHECKED MANUALLY (to make adjustments for typos). Click Save and Submit to save and submit. Click…
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On May 1, Cedar Inc. purchases $100,000 of 10-year, Madison Corporation 6% bonds dated March 1 at 100 plus accrued interest. Journalize the entry for the semiannual receipt of interest on September 1. If an amount box does not require an entry, leave it blank.