On June 30, 2025, George Robinson Company issued $4,470,000.00 face value of 14%, 20-year bonds at $5,142,560.00, a yieldof 12%. Robinson uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest onJune 30 and -December 31.Click here to view factor tables.(a)Prepare the journal entries to record the following transactions. (Round answer to 2 decimal places, e.g. 38,548.25. If no entry isrequired, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when theamount is entered. Do not indent manually. List all debit entries before credit entries.)1.2.3.4.The issuance of the bonds on June 30, 2025.The payment of interest and the amortization of the premium on December 31, 2025.The payment of interest and the amortization of the premium on June 30, 2026.The payment of interest and the amortization of the premium on December 31, 2026.

Journal entries support recording the transaction in the books of accounts in a systematic manner.…

Answered: Prepare the journal entries to record…

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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Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 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 Dec. 31, Interest Expense 2022 Discount on Bonds Payable Cash Debit 27300 240 Credit 27060
Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober 31. Majestic’s balance sheet at December 31 should reporta. interest expense.b. interest revenue.c. interest payable.d. interest receivable.
A7
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…
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Prepare the appropriate journal entries for each of the following transactions in 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 1. On January 1, 2014, Carla Vista Cells issued bonds with a face value of $736,000. The bonds carry a stated interest of 6% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 102. No. Account Titles and Explanation 1. Debit Credit
On January 1, 2021, Madison Products issued $70 million of 6%, 10-year convertible bonds at a net price of $70.9 million. Madison recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Madison's no par common stock. Madison records interest by the straight-line method. On June 1, 2023, Madison notified bondholders of its intent to call the bonds at face value plus a 1% call premium on July 1, 2023. By June 30 all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30, Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted. In this question, combine the discount on the bonds with the face amount, and record the net amount as bonds payable. This is the "net method." When the net method is used, the discount (or premium) is amortized directly to the bonds…
Part 1 Prepare journal entries to the following. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) a. Issuance of the bonds on June 1, 2023 b. Payment of interest on December 1, 2023 c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2024 d. Payment of interest on June 1, 2024 Assume JetCom Inventors Inc. has a January 31 year-end. View transaction list Journal entry worksheet 1 2 3 4 Record issued bond at discount. Note: Enter debits before credits. Date June 01, 2023 General Journal Debit Credit >
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