prepare colons journal entries for (a) the january insurance (b) the july 1 interest payment, and (c) the december 31 adjusting entry.
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the colson company issued $300 000 of 10 bonds on january 1 2020. the bonds are due january 1 2025 with interest payable each july 1 and january 1. the bonds are issued at face value. prepare colons
Bonds:
Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.
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- 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 CreditOn January 1, 2020, PS ind issued P600,000 of 7% bonds, due in 10 years. The bonds were issued for P559,231, and pay interest each July 1 and January 1. It uses the effective- interest method. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%.On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2020. 1. Calculate the bond issue price assuming a market interest rate of 7% on the date of issue 2. Using the effective interest method, prepare an amortization schedule. (Image attached) 3. Record the entries for the issuance of the bond on March 1, the adjusting entry to accrue bond interest and related amortization on April 30, 2020, Quinto’s year-end, and the payment of interest on September 1, 2020. Record the issuance of bond Record accrual of interest on bond Record payment of interest
- On August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Bramble’s year-end is December 31. 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 Aug. 1 enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an…On January 1, 2018, Lane Unlimited issues a 9%, 10- year bonds payable with a face value of $240,000. The bonds are issued at 105 and pay interest on June 30 and December 31. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2018. I know to journalize I should use: Interest Expense Premium on Bonds Payable Cash But how do i figure out the amount of the interest expense, premium on bonds payable and cash?On January 1, 2025, Wildhorse Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds were issued for $478,264, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Wildhorse uses the effective-interest method. (Round answers to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 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.) No. (a) (6) (c) Date Account Titles and Explanation Debit Cre
- On January 1, 2018, Nebal Manufacturing Corporation issued $5,000,000, 10%, 6-year bonds dated January 1, 2018, at 105. The bonds pay semi-annual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a December 31, year end. Instructions: Prepare the journal entries to record the following: The issuance of bonds on January 1, 2018. The payment of interest and the discount (or premium) amortization on July 1, 2018. The accrual of interest and the discount (or premium) amortization on December 31, 2018. The payment of interest on January 1, 2019.On November 1, 2020, your company issued $600,000 of 5 year 9% bonds when the market interest rate was 8%. The bonds pay interest annually on October 31 each year. Your company uses the interest method of amortization. Calculate the bond selling price on November 1, 2020. Please show the factors you entered into your calculator or spreadsheet to calculate the amount. Prepare the bond entries from November 1, 2020 through December 31, 2021 (one year and two months), assuming your company’s year ends on December 31 and your company does NOT make reversing entries on January 1. Based upon the entries in part “b.” indicate any current liabilities (and the balance in the current account) your company would report on the balance sheet on December 31, 2021 (the second year). Based upon the entries in part “b.” indicate any NONcurrent liabilities (and the balance in the account) your company would report on December 31, 2021 (the second year)On January 1, 2025, Concord Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds were issued for $537.196, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance. (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Concord uses the effective interest method. (Round answers to 0 decimal places, eg, 38,548. 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) No. (4) Date Account Titles and Explanation Debit Cred
- Moore Inc. issued bonds with a $500,000 face value, 8% interest rate, and a 4-year term on July 1, 2020 and received $475,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2020: entry to record issuing the bonds. B. June 30, 2021: entry to record payment of interest to bondholders. C. June 30, 2021: entry to record amortization of discount. D. June 30, 2022: entry to record payment of interest to bondholders. E. June 30, 2023: entry to record amortization of discount.The following section is taken from Crane's balance sheet at December 31, 2024. Current liabilities Interest payable Long-term liabilities Bonds payable (9%, due January 1, 2028) (a) (b) $41,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (c) 510,000 Journalize the payment of the bond interest on January 1, 2025. Assume that on January 1, 2025, after paying interest, Crane calls bonds having a face value of $105,000. The call price is 105. Record the redemption of the bonds. Prepare the adjusting entry on December 31, 2025, to accrue the interest on the remaining bonds.On January 1, 2021, Gibson Company issues $5,000,000 of 10 year bonds at an issuance price of 98. The bonds pay interest on June 30 and December 31. The stated interest rate in 8%. Make the journal entries for: January 1, 2021 June 30, 2021 December 31, 2021 June 30, 2022 December 31, 2022 December 31, 2030 when the bonds mature.
