Presented below are selected transactions on the books of Coronado Corporation. June 1, 2020 Bonds payable with a par value of $564,000, which are dated January 1, 2017, are sold at 99 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.) Dec. 31 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.) Jan. 1, 2021 Interest on the bonds is paid. August 1 Bonds with par value of $225,600 are called at 102 plus accrued interest, and retired. (Bond discount is to be amortized only at the end of each year.) Dec. 31 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 0 decimal places, e.g. 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 amount is entered. Do not indent manually.)

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7: Accounting For Cash

Section: Chapter Questions

Problem 1SEA: CHECKING ACCOUNT TERMS Match the following words with their definitions:

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Presented below are selected transactions on the books of Coronado Corporation.

June 1, 2020		Bonds payable with a par value of $564,000, which are dated January 1, 2017, are sold at 99 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.)
Dec. 31		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.)
Jan. 1, 2021		Interest on the bonds is paid.
August 1		Bonds with par value of $225,600 are called at 102 plus accrued interest, and retired. (Bond discount is to be amortized only at the end of each year.)
Dec. 31		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 0 decimal places, e.g. 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 amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
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