not use ai please Sunland Company issued its 9%, 25-year mortgage bonds in the principal amount of $2,750,000 on January 2, 2006, at adiscount of $151,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-linebasis. The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at anytime before maturity at 105% of the principal amount, but it did not provide for any sinking fund.On December 18, 2020, the company issued its 12%, 20-year debenture bonds in the principal amount of$4,340,000 at 102, and the proceeds were used to redeem the 9%, 25-year mortgage bonds on January 2, 2021. Theindenture securing the new issue did not provide for any sinking fund or for redemption before maturity.(a) Prepare journal entries to record the issuance of (1) the 12% bonds and (2) the redemption of the 9% bonds. (If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented whenamount is entered. Do not indent manually.)No. DateAccount Titles and Explanation(1)December18, 2020(2)January 2,2021DebitCred

December 18,2020First, we need to compute the proceeds on the issuance. That would be the face value…

Answered: Sunland Company issued its 9%, 25-year…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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Holiday Company issued its 9%, 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 2006, at a discount of $150,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before maturity at 104% of the principal amount, but it did not provide for any sinking fund. On December 18, 2020, the company issued its 11%, 20-year debenture bonds in the principal amount of $4,000,000 at 102, and the proceeds were used to redeem the 9%, 25-year mortgage bonds on January 2, 2021. The indenture securing the new issue did not provide for any sinking fund or for redemption before maturity. Instructions a. Prepare journal entries to record the issuance of the 11% bonds and the redemption of the 9% bonds. b. Indicate the income statement treatment of the gain or loss from redemption and the note…
Swifty Company issued its 7%, 25-year mortgage bonds in the principal amount of $3,230,000 on January 2, 2011, at a discount of $135,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before maturity at 105% of the principal amount, but it did not provide for any sinking fund. On December 18, 2025, the company issued its 11%, 20-year debenture bonds in the principal amount of $4,180,000 at 103, and the proceeds were used to redeem the 7%, 25-year mortgage bonds on January 2, 2026. The indenture securing the new issue did not provide for any sinking fund or for redemption before maturity. a. Prepare journal entries to record the issuance of the 11% bonds and the redemption of the 7% bonds. (Record entries in the order displayed in the problem statement. If no entry is required, select "No Entry" for the…
(Issuance and Redemption of Bonds; Income Statement Presentation) Holiday Company issued its 9%, 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 2003, at a discount of $150,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before maturity at 104% of the principal amount, but it did not provide for any sinking fund.On December 18, 2017, the company issued its 11%, 20-year debenture bonds in the principal amount of $4,000,000 at 102, and the proceeds were used to redeem the 9%, 25-year mortgage bonds on January 2, 2018. The indenture securing the new issue did not provide for any sinking fund or for redemption before maturity.Instructions(a) Prepare journal entries to record the issuance of the 11% bonds and the redemption of the 9% bonds.(b) Indicate the income statement…
On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually. Orange Inc. purchased the bonds on the issue date for the issue price. If Lisbon uses the straight-line method for amortizing the premium, the journal entry to record the first semiannual interest payment by Lisbon Co. would include a debit toa. Interest Payable for $30,000b. Interest Expense for $32,500c. Cash for $70,000d. Premium on Bonds Payable for $5,500
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Tamarisk Ltd. issued a $1,076,000, 10-year bond dated January 1, 2023. The bond was sold at 98.8% interest was payable on the bond on January 1 and July 1 each year. The company's year-end was December 31, and Tamarisk followed ASPE, and chose to use the straight-line amortization method. Prepare the journal entries for the given dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date || | | Account Titles and Explanation Debit Credit ||
On May 1, 2010, Kirmer Corp. purchased $450,000 of 12% bonds, interest payable on January 1 and July 1, for $422,800 plus accrued interest. The bonds mature on January 1, 2016. Amortization is recorded when interest is received by the straight-line method (by months and round to the nearest dollar). (Assume bonds are available for sale.) a) Prepare the entry for May 1, 2010. b) The bonds are sold on August 1, 2011, for $425,000 plus accrued interest. Prepare all entries required to properly record the sale.
Clark Company issued $80,000 of 10-year, 7% bonds payable on January 1, 2024. Clark Company pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line amortization method. The company can issue its bonds payable under various conditions. Read the requirements. Requirement 1. Journalize Clark Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at face value. Explanations are not required. (Record debits first, then credits. Exclude explanations from any iournal entries Journalize the issuance of the bond payable at face value. Requirements Date Accounts 2024 Jan. 1 Cash Bonds Payable Journalize the payment of semiannual interest when the bonds Date 2024 Accounts C……. 1. Journalize Clark Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at face value. Explanations are not required. 2. Journalize Clark Company's issuance of the bonds and first semiannual…
On March 1, 2022, Havenford Corporation issued $240,000, 4 year, 6% bond. Interest is to be paid semi-annually September 1 and March 1. The market rate for similar bonds was 5% at the time the bonds were sold. Havenford Corporation has a April 30 year end and uses the effective interest method to amortize any discount or premium.On September 2, 2024, Havenford redeemed 48% of the face value of these bonds at 101 and retired them.1. Calculate the PV of the bonds 2. Complete the amortization table using the effective interest method. 3. Record the following journal entries in the table below. i) Prepare the journal entry to record the issuance of the bond. ii) Prepare the journal entry to accrue the bond interest at corporate year end. iii) Prepare the journal entry to record the first interest payment. iv) Prepare the journal entry for the retirement of the bonds. Please do it properly correctly and with all the steps or calculations Kindly do it right i need a special expert for this…

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