On 1/1/19 Impish Corp. issued a 10-year bond with a par value of
$100,000, an annual...
On 1/1/19 Impish Corp. issued a 10-year bond with a par value of
$100,000, an annual stated rate of 10%, and a market rate (yield)
of 12%. Interest payments are made annually each
12/31. The bonds were issued for a price of
$88,702.
Required (1): Record the journal
entries for the first two interest payments (on 12/31/2019 and
12/31/2020) assuming the company uses the
effective-rate method (round to the nearest
dollar).
Remember to include financial statement effects in
parentheses. All journal...
On January 1, 2020 Malone borrowed $150,000 in exchange for a 4
year zero interest note....
On January 1, 2020 Malone borrowed $150,000 in exchange for a 4
year zero interest note. The normal borrowing rate for Malone is
8%.
Record the necessary journal entries at 1/1/20, 12/31/20 and
12/31/21
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,...
(b) Brookfield Inc. issued $600,000 of 9%, 10 – year bonds on
June 30, 2015, for...
(b) Brookfield Inc. issued $600,000 of 9%, 10 – year bonds on
June 30, 2015, for $562,500. This price provided a yield of 10% on
the bonds. Interest is payable semi annually on December 31 and
June 30. Determine the amount of interest expense to record if
financial statements are issued on October 31, 2015. (c)
On October 1, 2015, Brimley Company sold 12% bonds having a
maturity value of $800,000 for $853,382 plus accrued interest,
which provides the bondholders...
Record the following entries in general journal form for
December, 2020: December 1: Recorded sales on...
Record the following entries in general journal form for
December, 2020: December 1: Recorded sales on account of $100,000,
2/10, net 30. Cost of inventory was 63,500. Company uses the net
method for accounting for sales. December 2: Purchased Land for a
future building site for $700,000, paying $200,000 down and signed
a 5%, 90-day note for the balance. December 3: Bought back 1000
shares of stock for $17 per share. December 4: Purchased $40,000
worth of equipment, 5 year...
Question 36
ABC Company issues $10,000,000, 8%, 10-year bonds at 96.5 on
July 1, 2019. Interest...
Question 36
ABC Company issues $10,000,000, 8%, 10-year bonds at 96.5 on
July 1, 2019. Interest is paid on July 1 and January 1. The journal
entry to record the issuance will include
a debit to cash for $10,000,000
a credit to cash for $9,650,000
a credit to bonds payable for $9,650,000
a debit to discount on bonds payable for $350,000
Question 37
DEF Corporation retires its $100,000 face value bonds at 105 on
January 1, following the payment of...