The following section is taken from Ohlman Corp's balance sheet at December 31, 2018. Current liabilities Interest payable $ 112,000 Long-term liabilities Bonds payable, 7%, due January 1, 2021 1,600,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. (a) Journalize the payment of the bond interest on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 (b) Assume that on January 1, 2019, after paying interest, Ohlman calls bonds having a face value of $600,000. The call price is 103. Record the redemption 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 (c) Prepare the entry to record the accrual of interest on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31
The following section is taken from Ohlman Corp's balance sheet at December 31, 2018. Current liabilities Interest payable $ 112,000 Long-term liabilities Bonds payable, 7%, due January 1, 2021 1,600,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. (a) Journalize the payment of the bond interest on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 (b) Assume that on January 1, 2019, after paying interest, Ohlman calls bonds having a face value of $600,000. The call price is 103. Record the redemption 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 (c) Prepare the entry to record the accrual of interest on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following section is taken from Ohlman Corp.’s balance sheet at December 31, 2018.
Bond interest is payable annually on January 1. The bonds are callable on any interest date.
(a)
Journalize the payment of the bond interest on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.
| Current liabilities | ||
| Interest payable | $ 112,000 | |
| Long-term liabilities | ||
| Bonds payable, 7%, due January 1, 2021 | 1,600,000 |
Bond interest is payable annually on January 1. The bonds are callable on any interest date.
(a)
Journalize the payment of the bond interest on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.
Transcribed Image Text:The following section is taken from Ohlman Corp's balance sheet at December 31, 2018.
Current liabilities
Interest payable
$ 112,000
Long-term liabilities
Bonds payable, 7%, due January 1, 2021
1,600,000
Bond interest is payable annually on January 1. The bonds are callable on any interest date.
(a)
Journalize the payment of the bond interest on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
Jan. 1
Transcribed Image Text:(b)
Assume that on January 1, 2019, after paying interest, Ohlman calls bonds having a face value of $600,000. The call price is 103. Record the redemption 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
(c)
Prepare the entry to record the accrual of interest on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent
manually.)
Date Account Titles and Explanation
Debit
Credit
Dec. 31
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