Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $110,000 and semiannual interest payments. Unamortized Discount $6,933 6,066 5,199 Carrying Value $103,067 103,934 104,801 Semiannual Period-End (0) (1) (2) January 1, issuance June 30, first payment December 31, second payment Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 3O. (c) The second interest payment on December 31. View transaction list Journal entry worksheet <> 1 2 Record the issue of bonds with a par value of $110,000 cash January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Prey 1 of 2 ... ... Next >

Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $110,000 and semiannual interest payments. Unamortized Discount $6,933 6,066 5,199 Carrying Value $103,067 103,934 104,801 Semiannual Period-End (0) (1) (2) January 1, issuance June 30, first payment December 31, second payment Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 3O. (c) The second interest payment on December 31. View transaction list Journal entry worksheet <> 1 2 Record the issue of bonds with a par value of $110,000 cash January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Prey 1 of 2 ... ... Next >

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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Bonds Payable Journal Entries; Issued at Par Plus Accrued Interest Richard, Inc., which closes its books on December 31, is authorized to issue $600,000 of six percent, 20‑year bonds dated March 1, with interest payments on September 1 and March 1.RequiredPrepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on July 1.a. The bond issuance.b. Payment of the semiannual interest on September 1.c. Accrual of bond interest expense at December 31.d. Payment of the semiannual interest on March 1 of the following year.e. Retirement of $200,000 of the bonds at 104 on March 1, Year 3 (immediately after the interest payment on that date). General Journal Date Description Debit Credit a. Jul.1 Bonds Payable Issuance of bonds plus accrued interest. b. Sept.1 Bond Interest Payable To record semiannual interest payment. c.…
Ces Wookie Company issues 6%, five-year bonds, on January 1 of this year, with a par value of $107,000 and semiannual interest payments. Seniannual Period-End Unamortized Premium Carrying Value $ 8,251 $ 115,251 7,426 114,426 6,601 113,601 (0) January 1, issuance (1) June 30, first payment (2) December 31, second payment Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. View transaction list Journal entry worksheet 1 2 3 Record the issuance of the bonds on January 1. Record entry Note: Enter debits before credits. Date January 01 General Journal Clear entry
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Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $27,000,000 of 5-year, 9% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ebert receiving cash of $24,964,830. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. b. Compute the amount of the bond interest expense for the first year. Round to the nearest dollar. Annual interest paid Discount amortized Interest expense for first…
Paulson Company issues 10%, four-year bonds, on January 1 of this year, with a par value of $98,000 and semiannual interest payments. Carrying Value $ 91,307 92,144 92,981 Semiannual Period-End Unamortized Discount (0) January 1, issuance (1) June 30, first payment (2) December 31, second payment $ 6,693 5,856 5,019 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. View transaction list Journal entry worksheet 1 2 3 > Record the issuance of the bonds on January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal
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There are 3 parts A, B, and C