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Presented below are selected transactions on the books of Sarasota Foundry. July 1, 2022 Dec. 31 Jan. 1, 2023 Jan. 2 Dec. 31 Bonds payable with a par value of €892,800, 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 €357,120 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

Presented below are selected transactions on the books of Sarasota Foundry. July 1, 2022 Dec. 31 Jan. 1, 2023 Jan. 2 Dec. 31 Bonds payable with a par value of €892,800, 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 €357,120 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

FINANCIAL ACCOUNTING
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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Presented below are selected transactions on the books of Sarasota Foundry. July 1, 2022 Dec. 31 Jan. 1, 2023 Jan. 2 Dec. 31 Date July 1, 2022 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.) Dec. 31, 2022 Jan. 1, 2023 Bonds payable with a par value of €892,800, 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. Dec. 31, 2023 Interest on the bonds is paid. Bonds of par value of €357,120 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. Jan. 2, 2023 Account Titles and Explanation Cash Bonds Payable Interest Expense Interest Expense Interest Payable (To record the interest) Bonds Payable Interest Expense (To amortize the premium) Interest Payable Cash Bonds Payable Cash Loss on Extinguishment of Debt Interest Expense Premium on Bonds Payable (To record the interest) Premium on Bonds Payable Interest Payable (To amortize the premium) Debit 1002525.12 107136 57009.74 107136 378206.15 94551.54 74918.28 Credit 892800 109725.12 107136 57009.74 107136 364262.40 13943.75 74918.28
Transcribed Image Text:Presented below are selected transactions on the books of Sarasota Foundry. July 1, 2022 Dec. 31 Jan. 1, 2023 Jan. 2 Dec. 31 Date July 1, 2022 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.) Dec. 31, 2022 Jan. 1, 2023 Bonds payable with a par value of €892,800, 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. Dec. 31, 2023 Interest on the bonds is paid. Bonds of par value of €357,120 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. Jan. 2, 2023 Account Titles and Explanation Cash Bonds Payable Interest Expense Interest Expense Interest Payable (To record the interest) Bonds Payable Interest Expense (To amortize the premium) Interest Payable Cash Bonds Payable Cash Loss on Extinguishment of Debt Interest Expense Premium on Bonds Payable (To record the interest) Premium on Bonds Payable Interest Payable (To amortize the premium) Debit 1002525.12 107136 57009.74 107136 378206.15 94551.54 74918.28 Credit 892800 109725.12 107136 57009.74 107136 364262.40 13943.75 74918.28
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