Journal entries.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Step by step correct answer. without using chatgpt. answer should be co

Answer cor

Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Just need the correct LOC? Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for December 31, 2019 (Thousands of Dollars) Sales $36,000 Operating costs 34,000 Earnings before interest and taxes $ 2,000 Interest 160 Pre-tax earnings $ 1,840 Taxes (25%) 460 Net income $ 1,380 Dividends (40%) $ 552 Addition to retained earnings $ 828 Stevens grew rapidly in 2019 and financed the growth with notes payable and long-term bonds. Stevens expects sales to…

Answer 2

Question

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

Answer 6

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

Answer 7

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

Answer 8

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

Answer 9

2.

Expert Solution

Answer 10

2.

Expert Solution

Answer 11

Expert Solution

Answer 12

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

Answer 13

3.

To determine

To prepare: Journal entries.

Answer 14

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.