The long-term liability section of Twin DigitalCorporation's balance sheet as of December31, 2020, included 10% bonds having a faceamount of $50 million and a remainingdiscount of $1 million. Disclosure notesindicate the bonds were issued to yield 12%.Interest expense is recorded at the effectiveinterest rate and paid on January 1 and July 1of each year. On July 1, 2021, Twin Digitalretired the bonds at 103 ($51.5 million) beforetheir scheduled maturity.Required:1. & 2. Prepare the necessary journal entriesby Twin Digital on July 1, 2021. (If no entry isrequired for a transaction/event, select "Nojournal entry required" in the first accountfield. Enter your answers in whole dollars.)Journal entry worksheetRecord the semiannual interest.Note: Enter debits before credits.DateGeneral JournalDebitCreditJuly 01, 2021

Journal Entry: Journal entry has two effects for every transaction. The journal entry is passed by…

The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020, included 10% bonds having a face amount of $50 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 12%.

The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020, included 10% bonds having a face amount of $50 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 12%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Naval Inc. Issued $20,000,000 face value bonds at a premium and recieved $21,450,000. At the end of 2019, the balance in the Premium on Bonds Payable account is $556,000. This year's balance sheet will show a net liability of
Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98. At December 31, 2022, $12,480 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2022. (Enter account name only and do not provide descriptive information.) Crane ElectricBalance Sheet (Partial)choose the accounting period select an opening section name enter a balance sheet item $enter a dollar amount select between addition and deduction : enter a balance sheet item enter a dollar amount $enter a subtotal of the two previous amounts
The Gorman Group issued $930,000 of 11% bonds on June 30, 2021, for $1,009,794. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. Required: 1.to3. Prepare the journal entries to record their issuance by The Gorman Group on Jun 30, 2021, interest on December 31, 2021, and interest on June 30, 2022 (at the effective rate). Record the issuance of the bond on June 30, 2021. Record the interest on December 31, 2021 (at the effective rate). Record the interest on June 30, 2022 (at the effective rate).
prepare the appropriate journal entry for the redemption or conversion of the bonds. Pharoah Company redeemed $155,000 face value, 17% bonds on June 30, 2020, at 96. The carrying value of the bonds at the redemption date was $158,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.
The long-term liability section of Twin Digital Corporation’s balance sheet as of December 31, 2020, included 12% bonds having a face amount of $15 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%.Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2021, Twin Digital retired the bonds at 104 ($15.6 million) before their scheduled maturity. Required:1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of $160 million. The bonds were priced at $142.00 million (plus accrued interest) to yield 12%. The price if issued on January 1 would have been $139.25 million. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September 30, 2024?
The long-term liability section of Eastern Post Corporation’s balance sheet as of December 31, 2023, included 12% bonds having a face amount of $48.0 million and a remaining premium of $8.0 million. On January 1, 2024, Eastern Post retired some of the bonds before their scheduled maturity. Questions: Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below: Eastern Post called half the bonds at the call price of 103 (103% of face amount). Eastern Post repurchased $12.0 million of the bonds on the open market at their market price of $12.5 million.
On June 30, 2020, Ayayai Company issued $3,810,000 face value of 16%, 20-year bonds at $4,956,520, a yield of 12%. Ayayai uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare journal entries (1) The issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021.
The long-term liability section of Eastern Post Corporation's balance sheet as of December 31, 2023, included 12% bonds having a face amount of $41.6 million and a remaining premium of $6.4 million. On January 1, 2024, Eastern Post retired some of the bonds before their scheduled maturity. Required: Prepare the journal entry by Eastern Post to record the redemption of the bonds under each of the independent circumstances below: Eastern Post called half the bonds at the call price of 104 (104% of face amount). Eastern Post repurchased $10.4 million of the bonds on the open market at their market price of $10.9 million.