- Your answer is partially correct. Nicholas Ram Corporation have a $2,100,000 "bond issue" dated March 1, 2016 due in 15 years with an annual interest rate of 7%. Interest is payable March 1 and September 1. On August 1, 2016, the bond was sold for $2,205,000 plus accrued interest. Using the straight-line method, prepare the general journal entries for each of the following a) The issuance of the bond on August 1, 2016 b) Payment of the semi-annual interest and the amortization of the premium on September 1, 2016. c) Accrual of the interest and the amortization of the premium on December 31, 2016. d) Payment of the semi-annual interest and the amortization of the premium on March 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.)
- Your answer is partially correct. Nicholas Ram Corporation have a $2,100,000 "bond issue" dated March 1, 2016 due in 15 years with an annual interest rate of 7%. Interest is payable March 1 and September 1. On August 1, 2016, the bond was sold for $2,205,000 plus accrued interest. Using the straight-line method, prepare the general journal entries for each of the following a) The issuance of the bond on August 1, 2016 b) Payment of the semi-annual interest and the amortization of the premium on September 1, 2016. c) Accrual of the interest and the amortization of the premium on December 31, 2016. d) Payment of the semi-annual interest and the amortization of the premium on March 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:-
Your answer is partially correct.
Nicholas Ram Corporation have a $2,100,000 "bond issue" dated March 1, 2016 due in 15 years with an annual interest rate of
7%. Interest is payable March 1 and September 1. On August 1, 2016, the bond was sold for $2,205,000 plus accrued interest.
Using the straight-line method, prepare the general journal entries for each of the following
a)
The issuance of the bond on August 1, 2016
b)
Payment of the semi-annual interest and the amortization of the premium on September 1, 2016.
c)
Accrual of the interest and the amortization of the premium on December 31, 2016.
d)
Payment of the semi-annual interest and the amortization of the premium on March 1, 2017.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when
entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round
answers to 2 decimal places, e.g. 5,275.25.)
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