Presented below are selected transactions on the books of Blossom Foundry. July 1, 2022 Dec. 31 Jan. 1, 2023 Jan. 2 Dec. 31 Bonds payable with a par value of €926,400, which are dated January 1, 2022, are sold at 112.290 plus accrued interest to yield 10%. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2032. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. Interest on the bonds is paid. Bonds of par value of €370,560 are called at 102 and extinguished. Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Prepare journal entries for the transactions above. (Round intermediate calculations to 5 decimal places, e.g. 1.25247 and final answers to 2 decimal places, e.g. 38,548.37. 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 amount is entered. Do not indent manually.)
Presented below are selected transactions on the books of Blossom Foundry. July 1, 2022 Dec. 31 Jan. 1, 2023 Jan. 2 Dec. 31 Bonds payable with a par value of €926,400, which are dated January 1, 2022, are sold at 112.290 plus accrued interest to yield 10%. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2032. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. Interest on the bonds is paid. Bonds of par value of €370,560 are called at 102 and extinguished. Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Prepare journal entries for the transactions above. (Round intermediate calculations to 5 decimal places, e.g. 1.25247 and final answers to 2 decimal places, e.g. 38,548.37. 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 amount is entered. Do not indent manually.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
nit.3
Transcribed Image Text:Presented below are selected transactions on the books of Blossom Foundry.
July 1, 2022
Dec. 31
Jan. 1, 2023
Jan, 2
Dec. 31
Date
Bonds payable with a par value of €926,400, which are dated January 1, 2022, are sold at 112.290 plus accrued
interest to yield 10%. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature
January 1, 2032. (Use interest expense account for accrued interest.)
Prepare journal entries for the transactions above. (Round intermediate calculations to 5 decimal places, e.g. 1.25247 and final answers to 2
decimal places, e.g. 38,548.37. 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 amount is entered. Do not indent manually.)
July 1, 2022
Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount
of premium.
Interest on the bonds is paid.
Bonds of par value of €370,560 are called at 102 and extinguished.
Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium
amortized.
V
Jan. 2, 2023
Account Titles and Explanation
Cash
Bonds Payable
Premium on Bonds Payable
(To record the interest)
(To amortize the premium)
(To record the interest)
(To amortize the premium)
Debit
Credit
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