Recording Bonds Issued at Face ValueYale Corporation issued to Zap Corporation $36,000, 8% (cash interest payable semiannually on July 1 and January 1) 10-year bonds dated and sold on January 1, 2020. If thebonds were sold at face value, provide the journal entries to be made at each of the following dates. Yale's fiscal year ends on December 31.a. January 1, 2020, for issuance of bonds.b. July 1, 2020,Cashc. December 3InventoryEquipmentDateDr.Cr.Landa. Jan. 1, 2020Deferred RevenueBonds PayableDiscount on Bonds Payableb. Jul. 1, 2020Discount and Debt Issuance CostsPremium on Bonds PayableFair Value Adjustment-Bonds PayableNote PayableDiscount on Note Payableс. Dec. 31, 202Premium on Note PayableFair Value Adjustment-Note PayableInterest PayablePlease answerCommon StockPaid-in Capital in Excess of Par-Common StockPaid-in Capital-Stock WarrantsRetained Earnings-Prior Period AdjustmentDebt Conversion ExpensePreviousNextInterest ExpenseLoss on Redemption of BondsGain on Redemption of BondsUnrealized Gain or Loss-IncomeUnrealized Gain or Loss-OCI Recording Bonds Issued at Face ValueYale Corporation issued to Zap Corporation $36,000, 8% (cash interest payable semiannually on July 1 and January 1) 10-year bonds dated and sold on January 1, 2020. If thebonds were sold at face value, provide the journal entries to be made at each of the following dates. Yale's fiscal year ends on December 31.a. January 1, 2020, for issuance of bonds.b. July 1, 2020, for the interest payment.c. December 31, 2020, for the adjusting entry.DateAccount NameDr.Cr.a. Jan. 1, 2020b. Jul. 1, 2020c. Dec. 31, 2020Please answer all parts of the question.

Working: Semiannual interest = Face value of the bonds x rate of interest x no. of months / 12 =…

Yale Corporation issued to Zap Corporation $36,000, 8% (cash interest payable semiannually on July 1 and January 1) 10-year bonds dated and sold on January 1, 2020. If the bonds were sold at face value, provide the journal entries to be made at each of the following dates. Yale's fiscal year ends on December 31. a. January 1, 2020, for issuance of bonds. b. July 1, 2020, for the interest payment. c. December 31, 2020, for the adjusting entry. Date Account Name Dr. Cr. a. Jan. 1, 2020 수 b. Jul. 1, 2020 수 c. Dec. 31, 2020 수

Yale Corporation issued to Zap Corporation $36,000, 8% (cash interest payable semiannually on July 1 and January 1) 10-year bonds dated and sold on January 1, 2020. If the bonds were sold at face value, provide the journal entries to be made at each of the following dates. Yale's fiscal year ends on December 31. a. January 1, 2020, for issuance of bonds. b. July 1, 2020, for the interest payment. c. December 31, 2020, for the adjusting entry. Date Account Name Dr. Cr. a. Jan. 1, 2020 수 b. Jul. 1, 2020 수 c. Dec. 31, 2020 수

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

A7
Omar Company issued a $140,000, 11%, 10-year bond payable at 97 on January 1, 2024 Interest is paid semiannually on January 1 and July 1 Read the requirements Requirement 1. Journalize the issuance of the bond payable on January 1, 2024 (Record debits first, then credits Select explanations on the last line of the journal entry.) Date Accounts and Explanation Debit Credit 2024 Jan. 1
On August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Bramble’s year-end is December 31. 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 Aug. 1 enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an…
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
Dog
Subject :- account
Roarie LLC issued 10,000, $1,000 bonds on January 1, 2020. The bonds have a 10-year term and pay interest semiannually. This is a partial bond amortization schedule for the bonds: Cash Payment Interest A. $4,261,329 B. $7,738,658 C. $4,000,000 D. $3,738,658 Effective Decrease in Interest Balance Disct Cash 1 200,000 313,067 113,067 2 200,000 318,720 118,720 3 200,000 324,657 124,657 4 200,000 330,889 130,889 What would be the total interest cost of the bonds over their full term? Outstanding Balance 10,000,000 (6,261,343) 3,738,658 4,000,000 7,738,658 6,261,343 6,374,410 6,493,130 6,617,787 6,748,676
on January 1, 2021. Friendly corporation issued $600,000, 4% 5-years bonds at 13 at 103. Interest is payable semiannually on July 1 and January 1. The entry to record the issuance of the bonds would include a debit to premiun on bonds payable for $18,000 discount on bonds payable for $18,000 cash for $618,000 bonds payable for $600,000
Landings Glassware Company issues $1,066,000 of 16%, 10 – year bonds at 94 on February 28, 2025. The bonds pay interest on February 28 and August 31. The journal entry to record the issuance includes a O A. credit to Discount on Bonds Payable for $63,960 O B. credit to Bonds Payable for $1,002,040 O C. debit to Cash for $1,066,000 O D. debit to Cash for $1,002,040
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
Lennar Inc. issued $100,000 of 10% bonds dated May 1, 2021 for $239,588. The bonds mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on October 31 and April 30. Lennar's fiscal year is the calendar year. Lennar uses the effective interest method of amortization. Required: 1. Prepare the journal entry to record the bond issuance on May 1, 2021. 2. Prepare the necessary journal entry on October 31, 2021 (1st payment). 3. Prepare the adjusting entry for the accrued interest (for 2 months) on December 31, 2021
On April 1, 2021, Marigold Corporation issued $352.000, 5-year bonds. On this date, Shoreline Corporation puurchased the bonds from Marigold to earn interest. Interest is received semi-annually on April 1 and October 1 and Shoreline's year end is March 31 Below is a partial amortization schedule for the first three interest periods of the bond issue Semi-Annual Interest Received Interest Interest Period Revenue Amortization Bond Amortized Cost April 1. 2021 $368.231 October 1, 2021 $7.040 $5.523 $1.517 366.714 April 1.2022 7.040 5.501 1.539 365,175 October 1, 2022 7.040 5,478 1,562 363,613 Were the bonds purchased at a discount or at a premium? Bonds purchased at a What is the face value of the bonds? Face value of the bonds s eTextbook and Media What will the bonds' amortized cost be at the maturity date? Bonds' amortized cost at the maturity date eTextbook and Media /1 E What is the bonds' contractual interest rate? The market interest rate? (Round answers to 2 decimal places, eg…