Required informationJournal entry worksheet1<.Ajax, Inc., issued callable bonds with a par value of $1,000,000 that requirethe payment of a call premium of $10,0000. The bonds have a carrying value of$990,000. We call these bonds prior to maturity on September 30.Note: Enter debits before credits.DateGeneral JournalDebitCreditSep. 30...< Prev1516of 18Next > Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bonds havea carrying value of $990,000. We call these bonds prior to maturity on September 30.Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts inthe debit or credit columns.View transaction listJournal entry worksheetAjax, Inc., issued callable bonds with a par value of $1,000,000 that requirethe payment of a call premium of $10,000. The bonds have a carrying value of$990,000. We call these bonds prior to maturity on September 30.Note: Enter debits before credits.%24< Prev...1516of 18Next >..1:46 P%3D3/28/202F3F4F5F8F9F10F11F12InsertFnLockF6F7Prt Sc

These are the accounting transactions that are having a monetary impact on the financial statement…

Answered: payment of a call premium of $10,000.…

Business

Accounting

payment of a call premium of $10,000. The bonds D,000. We call these bonds prior to maturity on September 30.

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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Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $40,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $42,601,480. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the interest method. b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the interest method. 3. Determine the total interest expense for 20Y1.
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On January 1, a company issues bonds: Par Value: $2,000,000 Bond Term, in years: 10 Interest Payments: 2x/year Stated Interest Rate: 8% Market Interest Rate: 6% How much will the bond sell for? What dollar amount will be booked to Bonds Payable on the date of sale? How much is Interest Expense on the FIRST interest payment? How much is the amortization of the Bond Premium on the FIRST interest payment? How much is the Interest Expense on the SECOND interest payment? How much is the Amortization of the Premium on the SECOND interest payment?
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Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $4,400,000, 10%, 8-year bond that pays semiannual interest of $220,000 ($4,400,000 × 10% × ½), receiving cash of $4,647,147. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. accounts payable/bonds payable/cash/discounts on bonds payable/interest expense/premium on bonds payable/
On 31 December 20X7, Dunder Mifflin has the following bond on the statement of financial position: Bond payable, 8%, interest due semi-annually on 31 March and 30 September; maturity date, 30 September 20X10 $16,000,000 Discount on bonds payable (83,000) $15,917,000 Accrued interest payable of $400,000 was recorded on 31 December 20X7 ($16,000,000 × 10% × 3/12) and the bond discount was correctly amortized to 31 December 20X7. On 31 March 20X8, semi-annual interest was paid and the bond discount was amortized by a further $8,400. Then, 35% of the bond was retired at a cost of $5,488,000 (exclusive of interest). Required: Provide the entries to record the bond interest and retirement on 31 March 20X8.
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A $650,000 bond issue on which there is an unamortized discount of $45,00, is redeemed for $600,000. What journal entry would you make to record the redemption of the bond?
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