Question

NEED JOURNAL ENTRY FOR THIS EVENT 2 On January 1, issued $100,000 of 8 percent, five-year...

NEED JOURNAL ENTRY FOR THIS EVENT

2

On January 1, issued $100,000 of 8 percent, five-year bonds. The bonds were issued at 95.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Date Account Name and Explanation Debit Credit
Jan. 1 Cash                                        [$100,000 x 95%] $95,000
Discount on bonds payable      [$100,000 x (100% - 95%)] $5,000
    Bonds Payable $100,000
(To record bonds issued at discount)
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
Need answer for below two journal entry: 2.   Prepare the January 1, 2018 journal entry for...
Need answer for below two journal entry: 2.   Prepare the January 1, 2018 journal entry for the initial issuance. 3.   Prepare the journal entries to record the first two interest payments. Golf World, Inc., issued $240,000 of 6%, 15-year bonds dated January 1, 2018 that will pay interest semiannually on June 30 and December 31. These bonds were issued at $198,494, and the market rate of interest was 8% at the issue date.
The company issued $1,670,000 of bonds on January 1, 2020. 1.Prepare the journal entry to record...
The company issued $1,670,000 of bonds on January 1, 2020. 1.Prepare the journal entry to record redemption of the bonds a maturity. Assume he bonds were issued at 100. 2. Prepare the journal entry to record redemption of the bonds maturity at 95. Assume the balance in premium on bonds is $9,500.
Nocioni Company issued $1,000,000 of bonds on January 1, 2012. Prepare the journal entry to record...
Nocioni Company issued $1,000,000 of bonds on January 1, 2012. Prepare the journal entry to record the issuance of the bonds if they are issued at 100%, 98% and 103%. Prepare the journal entry to record the retirement of the bonds at maturity, assuming the bonds were issued at 100%. Prepare the journal entry to record the retirement of the bonds before maturity at 98. Assume the balance in Premium on Bonds Payable is $9,000. Prepare the journal entry to...
On January 1, 2019, The Pangborn Company issued $100,000 of its ten-year, 6% bonds payable at...
On January 1, 2019, The Pangborn Company issued $100,000 of its ten-year, 6% bonds payable at $108,000 to yield a market rate of 5%. The bonds were dated January 1, 2019, and interest is paid semiannually on each June 30 and each December 31. The effective interest method is used for amortization and no adjusting journal entries were made during the year. Prepare the journal entry for the sale of the bonds. Prepare the journal entry to record the first...
QUESTION 2 On January 1, Soren Enterprises issued 15-year bonds with a face value of $100,000....
QUESTION 2 On January 1, Soren Enterprises issued 15-year bonds with a face value of $100,000. The bonds carry a contract interest rate of 8 percent, and interest is paid semi-annually. On the issue date, the annual market interest rate for bonds issued by companies with similar riskiness was 10 percent. The issuance price of the bonds was $84,628. Which ONE of the following would be included in the journal entry necessary on the books of the bond issuer to...
Arnold Corp. issued $350,000 of 10-year, 6 percent, callable bonds on January 1, 2016, with interest...
Arnold Corp. issued $350,000 of 10-year, 6 percent, callable bonds on January 1, 2016, with interest payable annually on December 31. The bonds were issued at their face amount. The bonds are callable at 101.5. The fiscal year of the corporation ends December 31. Required: a. Show the effect of the following events on the financial statements by recording the appropriate amounts in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item...
On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10 % bonds for 92.639% of face...
On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10 % bonds for 92.639% of face value. On the other hand, the same company sells 108.111% of face value on July 1, 2017. Pass the necessary journal entry for issuance of bonds. On January 1, 2017, Candlestick, Inc. sells $100,000, five-year, 10 % bonds for 92.639% of face value. On the other hand the same company sells 108.111% of face value on July 1, 2017. Pass the necessary journal entry...
Sandhill Co. issued $ 600,000, 10-year, 8% bonds at 105. 1.Prepare the journal entry to record...
Sandhill Co. issued $ 600,000, 10-year, 8% bonds at 105. 1.Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 2.Suppose the remaining Premium on Bonds Payable was $ 18,000 on December 31, 2020. Show the balance sheet presentation on this date.
On January 1, 2016 Able Company issued (sold) $500,000 8% bonds 20 year bonds for $460,000...
On January 1, 2016 Able Company issued (sold) $500,000 8% bonds 20 year bonds for $460,000 when the market rate of interest was 10%. These semi-annual bonds pay interest on July 1 and January 1 of each year.   On January 2, 2017 Able Company retired the bonds by paying $471,000.   REQUIRED; A) MAKE THE JOURNAL ENTRY ABLE MAKES WHEN IT SELLS THE BONDS ON JANUARY 1, 2016 B) MAKE THE JOURNAL ENTRY ABLE MAKES ON JULY 1 2016 WITH THE...
1. On January 1, 2015, Bose Company issued bonds with a face value of $600,000. The...
1. On January 1, 2015, Bose Company issued bonds with a face value of $600,000. The bonds carry a stated interest of 7% payable each January 1 and July 1. Instructions a.Prepare the journal entry for the issuance assuming the bonds are issued at 95. b.Prepare the journal entry for the issuance assuming the bonds are issued at 105. c. Prepare the journal entry for payment of interest on July 1, assuming the bonds were issued at 100.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT