Question

Zapzap Corporation issued $4,000,000 in five-year, 4% bonds on August 1, 2019. Interest is to be...

Zapzap Corporation issued $4,000,000 in five-year, 4% bonds on August 1, 2019. Interest is to be paid semi-annually on Feb 1 and August 1. The bonds were sold to yield 6% effective annual interest. Pine Corporation has a calendar year-end and follows IFRS. Instructions:

Prepare the entries required for these bonds at • December 31, 2019(year end) • February 1, 2020 • August 1, 2020 when the interest was paid, and the entire issue was retired early for $4,350,000 plus interest.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
winslow corporation issued $600000 of 10 percent, five year bonds. the semiannual interest payment dates are...
winslow corporation issued $600000 of 10 percent, five year bonds. the semiannual interest payment dates are february 28 and august 31. the market rate for similar investments was 11 percent. the bonds were issued at a discount of $24335. the companys fiscal year ends february 28. prepare the journal entries for the following: record the bond issue on march 1,2019 the payment of interest, and the amountization of the discount on august 31, 2019 and on february 29, 2020
Grove Corporation issued $4,000,000 of 8% bonds on October 1, 2014, due on October 1, 2019....
Grove Corporation issued $4,000,000 of 8% bonds on October 1, 2014, due on October 1, 2019. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Grove Corporation closes its books annually on December 31. Instructions (a)   Complete the following amortization schedule for the dates indicated. (Round all answers to the nearest dollar.) Use the effective-interest method.                                                                           Debit                       Credit           Carrying Amount                                          Credit Cash     ...
. On August 1, 2010 Alpha Corporation issued $4,000,000, 10% convertible bonds at 115. The fair...
. On August 1, 2010 Alpha Corporation issued $4,000,000, 10% convertible bonds at 115. The fair value of similar bonds without the conversion feature was 110. On August 1, 2014, Alpha Corporation called its 10% convertible bonds for conversion. The bonds were converted into 160,000 common shares. On August 1, there was $350,000 of unamortized premium applicable to the bonds. At issuance of the bonds the market value of the common shares was $20 per share. The company records the...
On January 1, 2019, Zend Corporation issued $500,000, 8% bonds, receiving a $20,000 premium. On the...
On January 1, 2019, Zend Corporation issued $500,000, 8% bonds, receiving a $20,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 98 and retired the issue. Prepare the journal entry to record the retirement.
On January 1, 2019, Rufus Company issued $4,000,000 par value, 4%, bonds that mature on December...
On January 1, 2019, Rufus Company issued $4,000,000 par value, 4%, bonds that mature on December 31, 2029. The bonds were issued at 102 to yield a return of 3% to investors. Interest on the bonds is paid annually on December 31 each year. Please prepare the entry to record the issuance of the bonds on January 1, 2019. Prepare the entry to record the payment of interest on the bonds on December 31, 2019. (SHOW ALL WORK)
On September 1, 2017, Ivanhoe Corporation issued $605,000 of 10-year, 3% bonds at 95. Interest is...
On September 1, 2017, Ivanhoe Corporation issued $605,000 of 10-year, 3% bonds at 95. Interest is payable semi-annually on September 1 and March 1. Ivanhoe's fiscal year end is February 28.   Record the accrual of interest on February 28, 2018, assuming the semi-annual amortization amount for this interest period is $1,024
On August 1, 2017, Flint Corporation issued $502,800, 7%, 10-year bonds at face value. Interest is...
On August 1, 2017, Flint Corporation issued $502,800, 7%, 10-year bonds at face value. Interest is payable annually on August 1. Flint’s year-end is December 31.
On January 1, 2019, Timber Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were...
On January 1, 2019, Timber Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid annually on January 1. The company uses the effective-interest method of amortization. Instructions: (a) Prepare a bond discount amortization schedule which shows the amortization of discount for the first two interest payment dates. (Round to the nearest dollar). (b) Prepare the journal entries that Timber Corporation would make on January 1 and December...
    RPC Corporation issued $4,000,000 of two-year, 12% bonds at par value on September 30, 2015. The...
    RPC Corporation issued $4,000,000 of two-year, 12% bonds at par value on September 30, 2015. The interest is payable semi annually, starting on March 31st, 2015. Prepare the journal entries for the following: a.      Issuance of the bonds b.      Interest expense c.       Retirement of the bonds
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds payable to finance company expansion. The...
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds payable to finance company expansion. The bonds were dated January 1, 2019 and mature in four years on January 1, 2023. The bonds pay interest semi-annually each June 30th and December 31st. At the time of issuance, the market rate of interest for similarly risky investments was 6%. 1. At what amount were the bonds issued on January 1, 2019? 2. Prepare an amortization schedule for the life of the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT