Presented below are selected transactions on the books of Carla Corporation. June 1, 2020 Dec. 31 Jan. 1, 2021 August 1 Dec. 31 Bonds payable with a par value of $648,000, which are dated January 1, 2017, are sold at 97 plus accrued interest. They are coupon bonds, bear interest at 9% (payable annually at January 1), and mature January 1, 2030. (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 discount. (Use straight-line amortization.) Interest on the bonds is paid. Bonds with par value of $259,200 are called at 101 plus accrued interest, and retired. (Bond discount is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of discount amortized. Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles an automatically indented when amount is entered. Do not indent manually.)
Presented below are selected transactions on the books of Carla Corporation. June 1, 2020 Dec. 31 Jan. 1, 2021 August 1 Dec. 31 Bonds payable with a par value of $648,000, which are dated January 1, 2017, are sold at 97 plus accrued interest. They are coupon bonds, bear interest at 9% (payable annually at January 1), and mature January 1, 2030. (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 discount. (Use straight-line amortization.) Interest on the bonds is paid. Bonds with par value of $259,200 are called at 101 plus accrued interest, and retired. (Bond discount is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of discount amortized. Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles an automatically indented when amount is entered. Do not indent manually.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Presented below are selected transactions on the books of Carla Corporation.
June 1, 2020
Dec. 31
Jan. 1, 2021
August 1
Dec. 31
Date
ie 1, 2020
Bonds payable with a par value of $648,000, which are dated January 1, 2017, are sold at 97 plus accrued interest.
They are coupon bonds, bear interest at 9% (payable annually at January 1), and mature January 1, 2030. (Use
interest expense account for accrued interest.)
Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to
O decimal places, e.g. 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 amount is entered. Do not indent manually.)
>
Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper
amount of discount. (Use straight-line amortization.)
Interest on the bonds is paid.
Bonds with par value of $259,200 are called at 101 plus accrued interest, and retired. (Bond discount is to be
amortized only at the end of each year.)
Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of discount
amortized.
Account Titles and Explanation
Debit
628560
Credit
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