Presented below are selected transactions on the books of Skysong Corporation. May 1, 2020 Dec. 31 Jan. 1.2021 April 1 Dec. 31 Bonds payable with a par value of $916,800, which are dated January 1, 2020, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 11% (payable annually at January 11, and mature January 1, 2030. (Use interest expense account for accrued interest.) Date Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization.) Interest on the bonds is paid. Bonds with par value of $366,720 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.) Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, eg. 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) Account Titles and Explanation Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. # Debit Credit
Presented below are selected transactions on the books of Skysong Corporation. May 1, 2020 Dec. 31 Jan. 1.2021 April 1 Dec. 31 Bonds payable with a par value of $916,800, which are dated January 1, 2020, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 11% (payable annually at January 11, and mature January 1, 2030. (Use interest expense account for accrued interest.) Date Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization.) Interest on the bonds is paid. Bonds with par value of $366,720 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.) Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, eg. 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) Account Titles and Explanation Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. # Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Presented below are selected transactions on the books of Skysong Corporation.
May 1, 2020
Dec. 31
Jan. 1.2021
April 1
Dec. 31
Bonds payable with a par value of $916,800, which are dated January 1, 2020, are sold at 106 plus accrued
interest. They are coupon bonds, bear interest at 11% (payable annually at January 11, and mature January 1.2030
(Use interest expense account for accrued interest.)
Date
Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount
of premium. (Use straight line amortization.)
Interest on the bonds is paid.
Bonds with par value of $366,720 are called at 102 plus accrued interest, and redeemed. (Bond premium 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 premium
amortized.
Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, eg. 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 O for the
amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
#
Debit
Credit
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