Question

On January 1, 2020, Bonita Corporation issued $500,000 of 7% bonds, due in 10 years. The...

On January 1, 2020, Bonita Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds were issued for $466,026, and pay interest each July 1 and January 1. Bonita uses the effective-interest method. Prepare the company’s journal entries for

(a) the January 1 issuance,

(b) the July 1 interest payment, and

(c) the December 31 adjusting entry. Assume an effective-interest rate of 8%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Homework Answers

Answer #1

The answer has been presented in supporting sheet. For detailed answer refer to the supporting sheet.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Brief Exercise 14-6 On January 1, 2017, Whispering Corporation issued $500,000 of 7% bonds, due in...
Brief Exercise 14-6 On January 1, 2017, Whispering Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds were issued for $466,026, and pay interest each July 1 and January 1. Whispering uses the effective-interest method. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer...
On January 1, 2020, Novak Corporation issued $570,000 of 9% bonds, due in 8 years. The...
On January 1, 2020, Novak Corporation issued $570,000 of 9% bonds, due in 8 years. The bonds were issued for $603,210, and pay interest each July 1 and January 1. The effective-interest rate is 8%. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Novak uses the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places,...
On January 1, 2017, Vaughn Corporation issued $680,000 of 9% bonds, due in 8 years. The...
On January 1, 2017, Vaughn Corporation issued $680,000 of 9% bonds, due in 8 years. The bonds were issued for $643,151, and pay interest each July 1 and January 1. Vaughn uses the effective-interest method. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal...
Brief Exercise 14-7 On January 1, 2017, Splish Corporation issued $590,000 of 9% bonds, due in...
Brief Exercise 14-7 On January 1, 2017, Splish Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were issued for $624,376, and pay interest each July 1 and January 1. The effective-interest rate is 8%. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Splish uses the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to...
On January 1, 2017, Martinez Corporation issued $650,000 of 9% bonds, due in 10 years. The...
On January 1, 2017, Martinez Corporation issued $650,000 of 9% bonds, due in 10 years. The bonds were issued for $609,499, and pay interest each July 1 and January 1. Martinez uses the effective-interest method. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal...
The Skysong Company issued $310,000 of 12% bonds on January 1, 2017. The bonds are due...
The Skysong Company issued $310,000 of 12% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds were issued at 97. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Skysong Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically...
Culver Company issued $396,000 of 10%, 20-year bonds on January 1, 2017, at 102. Interest is...
Culver Company issued $396,000 of 10%, 20-year bonds on January 1, 2017, at 102. Interest is payable semiannually on July 1 and January 1. Culver Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account...
Teal Company issued $ 576,000 of  10%,  20-year bonds on January 1, 2017, at  102. Interest is payable semiannually...
Teal Company issued $ 576,000 of  10%,  20-year bonds on January 1, 2017, at  102. Interest is payable semiannually on July 1 and January 1. Teal Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of  9.7705%. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter...
Lorance Corporation issued $808,000, 8%, 10-year bonds on January 1, 2015, for $755,444. This price resulted...
Lorance Corporation issued $808,000, 8%, 10-year bonds on January 1, 2015, for $755,444. This price resulted in an effective-interest rate of 9% on the bonds. Interest is payable semiannually on July 1 and January 1. Lorance uses the effective-interest method to amortize bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date...
On January 1, 2020, Sweet Company sold 11% bonds having a maturity value of $900,000 for...
On January 1, 2020, Sweet Company sold 11% bonds having a maturity value of $900,000 for $934,116, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sweet Company allocates interest and unamortized discount or premium on the effective-interest basis. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry...