Presented below are two independent situations. 1. On January 1, 2020, Sunland Company issued $408,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1. 2. On June 1, 2020, Coronado Company issued $360,000 of 11%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. For each of these two independent situations, prepare journal entries to record the following. (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.) (a) The issuance of the bonds. (b) The payment of interest on July 1. (c) The accrual of interest on December 31. Date Account Titles and Explanation Debit Credit 1. Sunland Company: choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount 2. Coronado Company: choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

Presented below are two independent situations. 1. On January 1, 2020, Sunland Company issued $408,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1. 2. On June 1, 2020, Coronado Company issued $360,000 of 11%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. For each of these two independent situations, prepare journal entries to record the following. (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.) (a) The issuance of the bonds. (b) The payment of interest on July 1. (c) The accrual of interest on December 31. Date Account Titles and Explanation Debit Credit 1. Sunland Company: choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount 2. Coronado Company: choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date 1/1/206/1/207/1/2012/31/20 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

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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Question

Presented below are two independent situations.

1.		On January 1, 2020, Sunland Company issued $408,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1.
2.		On June 1, 2020, Coronado Company issued $360,000 of 11%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1.

For each of these two independent situations, prepare journal entries to record the following. (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.)

(a)		The issuance of the bonds.
(b)		The payment of interest on July 1.
(c)		The accrual of interest on December 31.

Date	Account Titles and Explanation	Debit	Credit
1.	Sunland Company:
choose a transaction date 1/1/206/1/207/1/2012/31/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 1/1/206/1/207/1/2012/31/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 1/1/206/1/207/1/2012/31/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2.	Coronado Company:
choose a transaction date 1/1/206/1/207/1/2012/31/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 1/1/206/1/207/1/2012/31/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 1/1/206/1/207/1/2012/31/20	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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