Simko Company issued $600,000, 10-year, 5 percent bonds on January 1, 2015. The bonds wereissued for $580,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record ( a ) the bond issuance on January 1, 2015, and ( b ) the payment of interest on December 31, 2015.
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Simko Company issued $600,000, 10-year, 5 percent bonds on January 1, 2015. The bonds were
issued for $580,000. Interest is payable annually on December 31. Using straight-line amortization, prepare
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- On December 31, 2018, Blue Devil Inc. issued $600,000 of 15-year, ten percent bonds payable for $517,411, yielding an effective interest rate of 12 percent. Interest is payable semiannually on June 30 and December 31. Prepare the following journal entries, and round answers to the nearest dollar. a. The issuance of the bonds on December 31, 2018. b. The semiannual interest payment and discount amortization (straight-line interest method) on June 30, 2019. HTML EditorKeyboard ShortcutsOn January 1, 2024, Robert Unlimited issues 8%, 20-year bonds payable with a face value of $240, 000 The bonds are issued at 104 and pay interest on June 30 and December 31. (Assume bond payable are amortized using the straight-line amortization method.) Read the requirements. Requirement 1. Journalize the issuance of the bonds on January 1, 2024. (Record debits first, then credits. Select explanations on the last line of the journal entry.) \table[[Date, Accounts and Explanation, Debit, Credit ], [2024], [Jan. 1]...........] Requirements Joumalize the issuance of the bonds on January 1, 2024. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2024. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2024 Journalize the retirement of the bond at maturity, assuming the last interest payment has already been recorded. (Give the date.)Moore Inc. issued bonds with a $500,000 face value, 8% interest rate, and a 4-year term on July 1, 2020 and received $475,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2020: entry to record issuing the bonds. B. June 30, 2021: entry to record payment of interest to bondholders. C. June 30, 2021: entry to record amortization of discount. D. June 30, 2022: entry to record payment of interest to bondholders. E. June 30, 2023: entry to record amortization of discount.
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- Adcock Company issued $276,000, 8%, 20-year bonds on January 1, 2015, at 105. Interest is payable semiannually on July 1 and January 1. Adcock uses straight-line amortization for bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2015 Prepare the journal entry to record the payment of interest and the premium amortization on July 1, 2015, assuming that interest was not accrued on June 30. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1, 2015 Prepare the journal entry to record the accrual of…Haley Inc. issued $350,000, 8% bonds on August 1, 2021. Interest is payable semi-annually on February 1 and August 1. The bonds mature on August 1, 2025. At the time of issuance, similar bonds were trading at 9%. Haley Inc. has a year-end of December 31. Required: Create a bond amortization schedule for the term of the bond. Round amounts to the nearest dollar. Prepare all required journal entries for 2021 and 2022 (including the issuance of the bonds). Round all amounts to the nearest dollar.Pharoah Company issued $2,400,000 of 10%, 10-year bonds on January 1, 2017, at 104. Interest is payable semiannually on July 1 and January 1. Pharoah Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.3750%.Prepare the journal entries to record the following. The issuance of the bonds.(b)The payment of interest and related amortization on July 1, 2017.(c)The accrual of interest and the related amortization on December 31, 2017.