Sunland Company issues $220,000, 20-year, 8% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation June 1 Debit Credit
Q: Carla Vista Co. issues $345,000, 20-year, 9% bonds at 103. Prepare the journal entry to record the…
A: Note payable: Note payable is an instrument through which borrower obtains money from lender and…
Q: Crane Inc. issues $250,000, 10-year, 8% bonds at 96. Prepare the journal entry to record the sale of…
A: Lets understand the basics.There are two method through which amortization of bonds are made.(1)…
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A: Given:
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A: If the issued Price is less than the face value , it will be treated as that Bonds are issued at…
Q: On October 1, 2021, Monty Corp. issued $828,000, 7%, 10-year bonds at face value. The bonds were…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…
A: Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash $311,500…
Q: Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a…
A: Journal Entry: Journal entry has two effects for every transaction. The journal entry is passed by…
Q: Brief Exercise 10-09 Oriole Company issues $325,000, 20-year, 7% bonds at 103. Prepare the journal…
A: Calculate the amount of cash received.
Q: Schlitterbahn Waterslide Company issued 35,000, 10-year, 8 percent, $100 bonds on January 1 at face…
A: The journal entries can be made as follows :
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A: Given that the bonds has been issued at premium and it has to be amortised on straight line basis.…
Q: Prepare the journal entries by Sanyal to record all events related to the bonds through January 31,…
A: As you have asked multiple sub-parts we can solve only first three sub-parts for you please repost…
Q: Blossom Company issues $3.2 million, 10-year, 9% bonds at 96, with interest payable on December 31.…
A: 1. Date Account Titles and Explanation Debit Credit Jan. 1 Cash ($3,200,000*96/100)…
Q: On October 1, 2021, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were…
A: Interest accrued on dec 31, 2021 = face value x rate of interest x no. of months/12 = $864000 x 8% x…
Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Darien Inc. redeemed $20,000 of its bonds at 102 on January 1. At this date, the unamortized…
A: Cash on bonds is 20000 × 1.02 = 20400 the unamortized discount was $2,760. Loss on redemption is $…
Q: Korean Corporation issued $2 million, 10-year, 6% bonds on January 1, 2021. 1) Prepare the entry…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Bramble Corp. issued 1,200 9%, 8-year, $1,000 bonds dated January 1, 2022, at face value. Interest…
A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Q: Legacy issues $610,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest…
A: Given that, Face value of the bond = $610000 issue price of bonds = $579203 rate of interest = 8%
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A: No. of issued bonds = $501,000 Interest rate = 8% Term to maturity = 30 years Percentage per bond =…
Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…
A: 20- Year 6% Bond =. $380,000 Interest Rate =6% Interest Payable on January 1.
Q: Prepare the journal entry to record the accrual of interest and the discount amortization on…
A: when bonds are issued at discount then interest expense equals cash interest paid and discount on…
Q: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…
A: Journal entries are used to record entries in chronological order for a business.
Q: Issuing Bonds at a Discount On January 1, the first day of the fiscal year, a company issues a…
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Q: 1. Camden Co. issued $200,000 of 10%, 2 year bonds on January 1, 2018. The bonds pay interest on…
A: Solution A: Computation of bond price Table values are based on: n= 4 i= 6.00%…
Q: On January 1, 2022, Sunland Company issued $420,000, 12%, 10-year bonds at face value. Interest is…
A: The bonds are the financial instruments that are issued to raise money from the market or investors.…
Q: som Company issues $390,000, 20-year, 8% bonds at 101. Prepare the journal entry to record the sale…
A: Bonds are debt instruments that carry the payment for interest annually and payment of face value on…
Q: Cucumber Electric sold $3,300,00, 8%, 10-year bonds on January 1, 2022. The bonds were dated January…
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A: Journal entries are the entries for all the financial transactions occurred during the period in the…
Q: Blossom Company issues $360,000, 20-year, 10% bonds at 101. Prepare the journal entry to record the…
A: Bonds is a debt market instruments. It is promise to repay the principal along with principal.Issue…
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A: Formulas that are used: Note:- 1. Premium on bonds issued will be amortized over 117 Months because…
Q: The balance sheet for Ivanhoe Consulting reports the following information on July 1, 2020.…
A: If bonds are redeemed at maturity, then bonds payable account is debited and cash is credited by the…
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Q: Omar Company issued a $140,000, 11%, 10-year bond payable at 97 on January 1, 2024 Interest is paid…
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Q: On August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is…
A: As per accrual principle of accounting, all the expenses need to be accounted for within the…
Q: a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an…
A: Bonds are the loan issued by Companies.
Q: (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account…
A: Journal entries are entered in the book in a sequential manner. Thus, any transaction can be found…
Q: Assume that on July 1, Jerome, Incorporated, paid $100,000 to buy Potter's 8 percent, two-year bonds…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
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A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: Pharoah Electric sold $5,400,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated…
A: The bonds are issued to raise the money from the market or investors. The bonds are reported as the…
Q: On January 1, 2022, Oriole Company issued $430,000, 8%, 10-year bonds at face value. Interest is…
A: The bonds are the financial instruments that are issued to raise money from the market or investors.…
Q: Part 1 Prepare journal entries to the following. (Do not round intermediate calculations. Round the…
A: The objective of the question is to prepare journal entries for the issuance of bonds, payment of…
Q: Splish Brothers Inc. issues $520,000, 20-year, 10% bonds at 102. Prepare the journal entry to record…
A: A premium bond is a bond that is trading at a price higher than its face value.For a premium bond,…
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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…Knowledge Check 01 On January 1, Duffy Enterprises issued $100,000 in bonds that mature in 10 years. The bonds were issued at face value. The bonds have a stated interest rate of 8% and pay interest once per year on December 31. Prepare the appropriate journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) - View transaction list View journal entry worksheet No 1 Transaction A Gain on Bond Retirement Interest Expense General Journal Debit 104,000 Credit 8,000 ⒸOriole Company issued $510,000 of bonds on January 1, 2020. (a) Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later I Debit 510000 Credit 510000 Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answer
- Issuing Bonds at Face Amount The first day of the fiscal year, a company issues a $700,000, 6%, 10-year bond that pays semiannual interest of $21,000 ($700,000 x 6% x 2 year), receiving cash of $700,000. a. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment. If an amount box does not require an entry, leave it blank. C. Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.What account would be debited (1), what account would be credit (2), and what amount would be paid to record the journal entry for each interest payment based on a $200,000 five-year, 10% bond and the bond was issued at $192,462 (11%) and interest is paid semiannually? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) ? (2) ? (1) Interest Expense debit $11,000, and (2) Cash credit $11,000 (1) Interest Expense debit $10,000 and (2) Cash credit $10,000 (1) Cash debit $20,000 and (2) Interest Expense credit $20,000 (1) Cash debit $22,000, and (2) Interest Expense credit $22,000On January 1, 2022, Ivanhoe Company issued $425,000, 12%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Your answer is partially correct. 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, Cash 51000 2022 Bonds Payable 51000
- Redemption of Bonds Payable On December 31, a $1,950,000 bond issue on which there is an unamortized discount of $70,500 is redeemed for $1,908,400. Required: Journalize the redemption of the bonds. Refer to the chart of accounts for the exact wording of the account titles. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4Carla Vista Co. issued $475,000, 15-year, 5% bonds at 96. Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Jan. 1 Cash Bonds Payable Premium on Bonds Payable Textbook and Media Debit Credit 475000Brief Exercise 10-08 Metlock, Inc. issues $264,000, 10-year, 10% bonds at 99. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit 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
- On January 1, Year 1, Price Company issued $291,000 of five-year, 5 percent bonds at 98. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the entry for issuance of bonds. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journalIssuing Bonds at Face Amount The first day of the fiscal year, a company issues a $350,000, 6%, 10-year bond that pays semiannual interest of $10,500 ($350,000 x 6% x 2 year), receiving cash of $350,000. a. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment. If an amount box does not require an entry, leave it blank. C. Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not reguire an entry, leave it blank. 00 00Pina Colada Corp. issues $2.80 million, 10-year, 6% bonds at 98, with interest payable each January 1. (a) Assuming instead that the above bonds sold for 102, prepare the journal entry to record the sale of these bonds on January 1. 2022. (Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Jan, 1 Cash Bonds Payable Premium on Bonds Payable Debit Credit