Pharoah Company issued $500,000 of bonds on January 1, 2020. (a) Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
Q: Crane Corporation issued $402,000 of 4%, 10-year bonds on January 1, 2024, at face value. Interest…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: 1. 2. 3. On January 1, 2022, 1,500, 9%, 5-year, $1,000 bonds dated January 1, 2022, were issued at…
A: Lets undertand the basics. Bonds can be issued at either, (1) Par value (2) At premium (3) At…
Q: Carla Vista Co. issues $345,000, 20-year, 9% bonds at 103. Prepare the journal entry to record the…
A: Note payable: Note payable is an instrument through which borrower obtains money from lender and…
Q: Crane Inc. issues $250,000, 10-year, 8% bonds at 96. Prepare the journal entry to record the sale of…
A: Lets understand the basics.There are two method through which amortization of bonds are made.(1)…
Q: Bramble Corp. issued 3,400 8%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest…
A: Given:
Q: Oakley Company issued a $40,000, 10%, 10-year bond payable at 97 on January 1, 2024. Interest is…
A: If the issued Price is less than the face value , it will be treated as that Bonds are issued at…
Q: Oriole Company issued $750,000, 7%, 10-year bonds on December 31, 2021, for $680,000. Interest is…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Blossom Inc. issues $210,000, 10-year, 8% bonds at 96. Prepare the journal entry to record the sale…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Wildhorse Corporation issued $300,000 of 10-year bonds at a discount. Prior to maturity, when the…
A: BOND Bond is a Financial Security which is generally Issued by the Corporations, Government &…
Q: Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing…
Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…
A: Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash $311,500…
Q: On December 31, a $1,550,000 bond issue on which there is an unamortized discount of $73,900 is…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: Prepare the journal entries by Sanyal to record all events related to the bonds through January 31,…
A: As you have asked multiple sub-parts we can solve only first three sub-parts for you please repost…
Q: Blossom Company issues $3.2 million, 10-year, 9% bonds at 96, with interest payable on December 31.…
A: 1. Date Account Titles and Explanation Debit Credit Jan. 1 Cash ($3,200,000*96/100)…
Q: On December 31, a $1,950,000 bond issue on which there is an unamortized discount of $70,500 is…
A: Journal entry is generally used to record the different kind of business transactions in the…
Q: Darien Inc. redeemed $20,000 of its bonds at 102 on January 1. At this date, the unamortized…
A: Cash on bonds is 20000 × 1.02 = 20400 the unamortized discount was $2,760. Loss on redemption is $…
Q: Korean Corporation issued $2 million, 10-year, 6% bonds on January 1, 2021. 1) Prepare the entry…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Bramble Corp. issued 1,200 9%, 8-year, $1,000 bonds dated January 1, 2022, at face value. Interest…
A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Q: Sheridan Company issued $501,000, 8%, 30-year bonds on January 1, 2025, at 102. Interest is payable…
A: No. of issued bonds = $501,000 Interest rate = 8% Term to maturity = 30 years Percentage per bond =…
Q: On January 1, 2020, Aumont Company sold 12% bonds having a maturity value of $ 500,000 for $…
A: Solution: Computation of bond price Table values are based on: n= 5 i= 10.00%…
Q: Prepare the journal entry to record the accrual of interest and the discount amortization on…
A: when bonds are issued at discount then interest expense equals cash interest paid and discount on…
Q: On January 1, 2017, Cullumber Company redeemed $490,000 of bonds at 103. At the time of redemption,…
A: Journal entry to record reacquisition of bond is as under:
Q: Adcock Company issued $276,000, 8%, 20-year bonds on January 1, 2015, at 105. Interest is payable…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: som Company issues $390,000, 20-year, 8% bonds at 101. Prepare the journal entry to record the sale…
A: Bonds are debt instruments that carry the payment for interest annually and payment of face value on…
Q: Requirement. Journalize the transactions of Lamire Communications Inc. (Record debits first, then…
A: An entity's interest expenditure is the cost of borrowing money. On the income statement, interest…
Q: Sandhill Co. sold $5,600,000, 7%, 15-year bonds on January 1, 2025. The bonds were dated January 1,…
A: Journal entry: A journal entry serves as documentation of a business's financial activities kept in…
Q: Assume that on January 1, 2022, after paying interest, Wildhorse calls bonds having a face value of…
A: Journal is a record keeping tool used to initially record financial transactions. It's the first…
Q: (b) Assume the same facts as part (a), except that the warrants had a fair value of $23. Prepare the…
A: Solution:- a)Preparation of the entry to record the issuance of the bonds and warrants as follows…
Q: payment of a call premium of $10,000. The bonds D,000. We call these bonds prior to maturity on…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Crane Company issued $1,730,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record…
A: When bonds are redeemed at par, we will Credit Cash Account.
Q: On December 31, a $2,300,000 bond issue on which there is an unamortized discount of $107,500 is…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Blossom Company issues $360,000, 20-year, 10% bonds at 101. Prepare the journal entry to record the…
A: Bonds is a debt market instruments. It is promise to repay the principal along with principal.Issue…
Q: Prepare the necessary journal entries to record the following transactions relating to the long-term…
A: Formulas that are used: Note:- 1. Premium on bonds issued will be amortized over 117 Months because…
Q: The balance sheet for Ivanhoe Consulting reports the following information on July 1, 2020.…
A: If bonds are redeemed at maturity, then bonds payable account is debited and cash is credited by the…
Q: On May 1, 2020, Larkspur Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one…
A: Bond: It is a debt instrument issued by the companies in order to raise finance. Bonds can b traded…
Q: Hasley Company issued $800,000, 11%, 10-year bonds on December 31, 2018, for $730,000. Interest is…
A: Journal entries forms part of basic accounting where the transactions of an organisation are being…
Q: On August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is…
A: As per accrual principle of accounting, all the expenses need to be accounted for within the…
Q: Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest…
A: Long-term debt is represented by bonds. When a corporation pays a lower interest rate than the…
Q: (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account…
A: Journal entries are entered in the book in a sequential manner. Thus, any transaction can be found…
Q: Pharoah Electric sold $5,400,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated…
A: The bonds are issued to raise the money from the market or investors. The bonds are reported as the…
Q: Sunland Company issues $220,000, 20-year, 8% bonds at 103. Prepare the journal entry to record the…
A: Journal entries are those which are recorded for every transaction which takes place during the…
Q: On January 1, 2022, Oriole Company issued $430,000, 8%, 10-year bonds at face value. Interest is…
A: The bonds are the financial instruments that are issued to raise money from the market or investors.…
Q: Part 1 Prepare journal entries to the following. (Do not round intermediate calculations. Round the…
A: The objective of the question is to prepare journal entries for the issuance of bonds, payment of…
Q: On May 1, 2025, Blossom Company issued 2,500 $1,000 bonds at 102. Each bond was issued with one…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
Q: Splish Brothers Inc. issues $520,000, 20-year, 10% bonds at 102. Prepare the journal entry to record…
A: A premium bond is a bond that is trading at a price higher than its face value.For a premium bond,…
Q: Pina Colada Corp. issued 2,100 8%, 9-year, $1,000 bonds dated January 1, 2017, at face value.…
A: Working note: Computation of annual interest expense: Interest Expense=Number of bonds×Par value of…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On December 31, a $1,600,000 bond issue on which there is an unamortized discount of $70,500 is redeemed for $1,554,100. Required: Journalize the redemption of the bonds. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.Cullumber Corporation issues $430,000 of bonds for $447,200. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation eTextbook and Media List of Accounts Debit CreditAdcock Company issued $276,000, 8%, 20-year bonds on January 1, 2015, at 105. Interest is payable semiannually on July 1 and January 1. Adcock uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2015 Prepare the journal entry to record the payment of interest and the premium amortization on July 1, 2015, assuming that interest was not accrued on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1, 2015 Prepare the journal entry to record the accrual of…
- Oriole Company issued $510,000 of bonds on January 1, 2020. (a) Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later I Debit 510000 Credit 510000 Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit AnswerHelen Martin Company issued $576,000 of 10%, 20-year bonds on January 1, 2025, at 103. Interest is payable semiannually on July 1 and January 1. Martin Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) a. b. C. The issuance of the bonds. The payment of interest and the related amortization on July 1, 2025. The accrual of interest and the related amortization on December 31, 2025. Date Account Titles and Explanation Debit CreditWhat account would be debited (1), what account would be credit (2), and what amount would be paid to record the journal entry for each interest payment based on a $200,000 five-year, 10% bond and the bond was issued at $192,462 (11%) and interest is paid semiannually? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) ? (2) ? (1) Interest Expense debit $11,000, and (2) Cash credit $11,000 (1) Interest Expense debit $10,000 and (2) Cash credit $10,000 (1) Cash debit $20,000 and (2) Interest Expense credit $20,000 (1) Cash debit $22,000, and (2) Interest Expense credit $22,000
- On January 1, 2022, Ivanhoe Company issued $425,000, 12%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Your answer is partially correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, Cash 51000 2022 Bonds Payable 51000Carla Vista Co. issued $475,000, 15-year, 5% bonds at 96. Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 Cash Bonds Payable Premium on Bonds Payable Textbook and Media Debit Credit 475000On January 1, Year 1, Price Company issued $291,000 of five-year, 5 percent bonds at 98. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the entry for issuance of bonds. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal
- Help mePina Colada Corp. issues $2.80 million, 10-year, 6% bonds at 98, with interest payable each January 1. (a) Assuming instead that the above bonds sold for 102, 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. If no entry is required, select "No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan, 1 Cash Bonds Payable Premium on Bonds Payable Debit CreditOn May 1, 2020, Stellar Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the fair value of the warrants cannot be determined.(a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (b) Assume the same facts as part (a), except that the warrants had a fair value of $25. Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.)