Swifty Corporation issues $2.70 million, 10-year, 7% bonds at 95, with interest payable each January 1.(I already solved Part a) Part B. Assuming instead that the above bonds sold for 105, prepare the journal entry to record the sale of these bonds on January 1, 2020
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Swifty Corporation issues $2.70 million, 10-year, 7% bonds at 95, with interest payable each January 1.(I already solved Part a)
Part B. Assuming instead that the above bonds sold for 105, prepare the
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- On January 1, 2018, Technicians Credit Union, (TCU), issued 8%, 20-year bonds payable with a face value of $900,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 108. How do I Journalize the payment of interest and amortization on December 31, 2018?Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2021 Maturity amount and date: $270,000 due in 10 years (December 31, 2030) Interest: 8.0 percent per year payable each December 31 Date issued: January 1, 2021 Required: For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2021, financial statements immediately after the bonds were issued: (Deductions should be indicated by a minus sign.) Case A Case B Case C January 1, 2021–Financial Statements: (At 100) (at 96) (at 104) a. Bonds payable b. Unamortized premium (discount) c. Carrying valueOn January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value). Assume that interest is payable semiannually on January 1 and July 1. Prepare the entry to record the payment of interest on July 1, 2021 Select one: O a. Interest Expense 5,400 Cash 5,400 O b. Interest Payable 10,800 Interest Expenses 10,800 O c. Interest Payable 5,400 Interest Expenses 5,400 O d. Interest Expense 10,800 Cash 10,800 Cirill lis ais!
- Xonic Corporation issued $7.5 million of 20-year, 8 percent bonds on April 1, 2021, at 102. Interest is paid on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2041. Xonic’s fiscal year ends on December 31. Prepare the following journal entries. a. April 1, 2021, to record the issuance of the bonds. b. September 30, 2021, to pay interest and to amortize the bond premium. c. March 31, 2041, to pay interest, amortize the bond premium, and retire the bonds at maturity (make two separate entries). Assume an adjusting entry was made on December 31, 2040, to recognize interest from October 1 to December 31. d. What is the effect of amortizing the bond premium on (1) annual net income and (2) annual net cash flow from operating activities. (Ignore possible income tax effects.Grocery Corporation received $301,001 for 13.50 percent bonds issued on January 1, 2021, at a market interest rate of 10.50 percent. The bonds had a total face value of $255,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the issuance of bonds with a face value of $255,000 for $301,001. Note: Enter debits before credits. Date January 011 Cash General Journal Premium on Bonds Payable Bonds Payable Debit CreditSalt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31.1. & 2. Record the necessary entries regarding the bonds. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole number.) Jan 1. Record the investment in bonds. Jun 30. Reord the receipt of the first interest payment.
- Salt Foods purchases thirty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $27,868 on January 1. The market interest rate for bonds of similar risk and maturity is 7%. Salt Foods receives interest semiannually on June 30 and December 31.1. & 2. Record the necessary entries regarding the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole number.)On January 1, 2019, Drake Services issued $20,000 of 8% bonds that mature in five years. The bonds were issued at par. Prepare the journal entry to issue bonds. Omit explanation.On March 31, 2021, Gardner Corporation received authorization to issue $90,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated March 31, 2021, but the bonds were not issued until April 30, 2021 They were issued at face value. a. Prepare the journal entry at April 30, 2021, to record the sale of the bonds. b. Prepare the journal entry at September 30, 2021, to record the semiannual bond interest payment. c. Prepare the adjusting entry at December 31, 2021, to record bond interest expense accrued since September 30, 2021 (Assume that no monthly adjusting entries to accrue interest expense had been made prior to December 31, 2021) (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 2 3 Record the sale of bonds. Date Apr 30, 2021 Note: Enter debits before credits General Journal Debil Credit
- On May 1, 2024, Green Corporation issued $1,200,000 of 8% bonds, dated January 1, 2024, for $1,104,000 plus accrued interest. The market rate of interest was 9%.The bonds pay interest semiannually on june 30 and december 31,.Green's fiscal year ends on December 31 each year. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. Prepare the journal entry for the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). Need answer in detail with explanation computation formulas with stepsNovak corp. Issued $417,000,11%, 15 year bond on december 31 2021 for $404,490. Interest is payable annually on december 31.novak uses the straight line method to amortize bond or discount prepare the journal entry to record the issuance of the bookWildhorse Electric sold $5,160,000, 14%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020, and paid interest on January 1. The bonds were sold at 97 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 enter an account title for the journal entry on January 1, 2020 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1, 2020 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1, 2020 enter a debit amount enter a credit amount 2.At December 31, 2020, $7,600 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31,…
