Oriole Company issued $640,000, 10%, 10-year bonds on December
31, 2019, for $570,000. Interest is payable...
Oriole Company issued $640,000, 10%, 10-year bonds on December
31, 2019, for $570,000. Interest is payable annually on December
31. Oriole Company uses the straight-line method to amortize bond
premium or discount.
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
Dec. 31, 2019
Prepare the journal entry to record the payment of interest and
the discount...
The information that follows relates to equipment owned by
Coronado Limited at December 31, 2020:
Cost...
The information that follows relates to equipment owned by
Coronado Limited at December 31, 2020:
Cost
$10,800,000
Accumulated depreciation to date
1,200,000
Expected future net cash flows (undiscounted)
8,400,000
Expected future net cash flows (discounted, value in use)
7,620,000
Fair value
7,440,000
Costs to sell (costs of disposal)
60,000
Assume that Coronado will continue to use this asset in the future.
As at December 31, 2020, the equipment has a remaining useful life
of four years. Coronado uses the straight-line...
Problem #4: North
Sea Drilling Co. purchased machinery on December 31, 2016, paying
$100,000 down and...
Problem #4: North
Sea Drilling Co. purchased machinery on December 31, 2016, paying
$100,000 down and agreeing to pay the balance in four equal
installments of $125,000 payable each December 31. An assumed
interest of 6% is implicit in the purchase price.
Instructions
Prepare the journal entries that
would be recorded for the purchase and for the payments and
interest on the following dates. Round amounts to the nearest
dollar.
December 31, 2016.
December 31, 2017.
Exercise 10-08
On December 31, 2019, Blue Inc. borrowed $4,260,000 at 12% payable
annually to finance...
Exercise 10-08
On December 31, 2019, Blue Inc. borrowed $4,260,000 at 12% payable
annually to finance the construction of a new building. In 2020,
the company made the following expenditures related to this
building: March 1, $511,200; June 1, $852,000; July 1, $2,130,000;
December 1, $2,130,000. The building was completed in February
2021. Additional information is provided as follows.
1.
Other debt outstanding
10-year, 13% bond, December 31, 2013, interest payable
annually
$5,680,000
6-year, 10% note, dated December 31, 2017,...
On December 31, 2020, Oriole Company acquired a computer from
Plato Corporation by issuing a $570,000...
On December 31, 2020, Oriole Company acquired a computer from
Plato Corporation by issuing a $570,000 zero-interest-bearing note,
payable in full on December 31, 2024. Oriole Company’s credit
rating permits it to borrow funds from its several lines of credit
at 10%. The computer is expected to have a 5-year life and a
$67,000 salvage value.
A )Prepare the journal entry for the purchase on December 31, 2020.
(Round present value factor calculations to 5 decimal places, e.g.
1.25124 and...
On January 1, 2019, Metlock, Inc. issued $554,500, 14%, 10-year
bonds at face value. Interest is...
On January 1, 2019, Metlock, Inc. issued $554,500, 14%, 10-year
bonds at face value. Interest is payable annually on January
1.
(a)
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
Jan. 1
(b)
Prepare the journal entry to record the accrual of interest on
December 31, 2019. (Credit account titles are
automatically indented when amount is...
On January 1, 2019, Metlock, Inc. issued $554,500, 14%, 10-year
bonds at face value. Interest is...
On January 1, 2019, Metlock, Inc. issued $554,500, 14%, 10-year
bonds at face value. Interest is payable annually on January
1.
(a)
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
Jan. 1
(b)
Prepare the journal entry to record the accrual of interest on
December 31, 2019. (Credit account titles are
automatically indented when amount is...
Exercise 15-07 a-c
The following section is taken from Sandhill Corp.’s balance sheet
at December 31,...
Exercise 15-07 a-c
The following section is taken from Sandhill Corp.’s balance sheet
at December 31, 2019.
Current liabilities
Interest payable
$ 113,400
Long-term liabilities
Bonds payable, 7%,
due January 1, 2024
1,620,000
Bond interest is payable annually on January 1. The bonds are
callable on any interest date.
Your answer is partially correct. Try again.
Journalize the payment of the bond interest on January 1, 2020.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)...
On January 1, 2020, Coronado Company purchased 12% bonds, having
a maturity value of $287,000 for...
On January 1, 2020, Coronado Company purchased 12% bonds, having
a maturity value of $287,000 for $308,758.85. The bonds provide the
bondholders with a 10% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Coronado Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
as available-for-sale category. The fair value of the bonds at
December 31 of each year-end is as follows....
10-08
On December 31, 2019, Sheffield Inc. borrowed $4,200,000 at 13%
payable annually to finance the...
10-08
On December 31, 2019, Sheffield Inc. borrowed $4,200,000 at 13%
payable annually to finance the construction of a new building. In
2020, the company made the following expenditures related to this
building: March 1, $504,000; June 1, $840,000; July 1, $2,100,000;
December 1, $2,100,000. The building was completed in February
2021. Additional information is provided as follows.
1.
Other debt outstanding
10-year, 14% bond, December 31, 2013, interest payable
annually
$5,600,000
6-year, 11% note, dated December 31, 2017, interest...