i need answer step by step Optical Dispensary borrowed $600,000 on January 2, 2024, by issuing a 15% serial bond payable that must be paid in three equal annual installmentsplus interest for the year. The first payment of principal and interest comes due January 2, 2025. Complete the missing information. Assume bonds areissued at face value. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell.)Current Liabilities:Bonds PayableInterest PayableLong-Term Liabilities:Bonds PayableDecember 31202420252026

Answered: Image /qna-images/answer/30050a2f-4c5f-46e2-a924-a9abc47eaabd.jpg

Answered: Optical Dispensary borrowed $600,000 on…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

See similar textbooks

Similar questions

Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discount
Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium
GoldenSeal Pharmacy borrowed $630,000 on January 2, 2025, by issuing a 15% serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2, 2026. Complete the missing information. Assume bonds are issued at face value. (Complete all input fields. For accounts with a $0 balance, make sure to enter a 0 in the appropriate cell.) Current Liabilities: Bonds Payable Interest Payable Long-Term Liabilities: Bonds Payable 2025 December 31 2026 2027
Orthopedic Dispensary borrowed $330,000 on January 2, 2024, by issuing a 12% serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2, 2025. Complete the missing information. Assume bonds are issued at face value. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Current Liabilities: Bonds Payable Interest Payable Long-Term Liabilities: Bonds Payable 2024 December 31 2025 2026 C
K Optical Dispensary borrowed $960.000 on January 2, 2024, by issuing a 12% serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2, 2025 Complete the missing information. Assume bonds are issued at face value. (For accounts with a 50 balance, make sure to enter to in the appropriate cell) Current Liabilities Bonds Payable Interest Payable Long-Term Liabilities: Bonds Payable 2024 December 31 2025 2026
A quick response will be appreciated
Record the issue of the bonds on July 31,2024. (List debit entry before credit entry. Record the payment of interest on January 31, 2025, assuming the semi-annual amortization amount for this interest period is \$895. (list all debit entries before credit entries Please answer all three requirements without image format answer thanku
Superior Drive-Ins Ltd. borrowed money by issuing $4,500,000 of 6% bonds payable at 96.5 on July 1, 2018. The bonds are 10-year bonds and pay interest each January 1 and July 1. Requirements 1. How much cash did Superior receive when it issued the bonds payable? Journalize this transaction. 2. How much must Superior pay back at maturity? When is the maturity date? 3. How much cash interest will Superior pay each six months? 4. How much interest expense will Superior report each six months? Use the straight-line amortization method. Journalize the entries for the accrual of interest and amortization of discount on December 31, 2018, and the payment of interest on January 1, 2019.
An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
Blossom Company issues $3.2 million, 10-year, 9% bonds at 96, with interest payable on December 31. The straight-line method is used to amortize bond discount. Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record interest expense and…

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS