January 1, 2019 ABEF company issued 5-year bonds with a par
value of $1,000,000 and a...
January 1, 2019 ABEF company issued 5-year bonds with a par
value of $1,000,000 and a 6% annual stated rate of interest. The
issue price of the bond was $950,000. Interest payments are made
semiannually. Any premiums or discounts should
amortized using the straight line method. (Remember when amortizing
pay attention to how many periods)
Prepare Journal Entries for the following
A) Record the issuance of the bonds
B) Record interest expense at June 30, 2019
C) Record interest expense...
On January 1, 2019, Denver Corporation issued 10-year, 4% bond
with a maturity value of $260,000....
On January 1, 2019, Denver Corporation issued 10-year, 4% bond
with a maturity value of $260,000. The bonds sells at 94.00 and pay
interest on July 1 and January 1. Denver Corporation amortizes the
bond using the effective interest rate method. The market rate is
5%.
Required
Prepare the journal entries to record the sale of the bond,
the interest expense for July 1 and the interest accrual for
December 31 (company has a year end of December 31). Explanations...
On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds,
due in 10 years. The...
On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds,
due in 10 years. The bonds were issued for $559,231, and pay
interest each July 1 and January 1. JWS 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%.
No.
Date
Account Titles and Explanation
Debit
Credit
(a)
(b)
(c)
On January 1, 2017, Tamarisk Inc. issued $490,000 of 6%, 5-year
bonds at par. Interest is...
On January 1, 2017, Tamarisk Inc. issued $490,000 of 6%, 5-year
bonds at par. Interest is payable semiannually on July 1 and
January 1.
Prepare journal entries to record the following.
(Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for
the amounts. Record journal entries in the order presented in the
problem.)
(a)
The issuance of the bonds....
On January 1, 2017, Powell Corporation issued $600,000, 5%,
5-year bonds dated January 1, 2017, at...
On January 1, 2017, Powell Corporation issued $600,000, 5%,
5-year bonds dated January 1, 2017, at 95. The bonds pay annual
interest on January 1. The company uses the effective interest
method of amortization and has a calendar year end. The market
interest rate is 6%. Prepare all the journal entries that Powell
Corporation would make related to this bond issue through January
1, 2018. Be sure to indicate the date on which the entries would be
made.
January 1,...
On January 1, Boston Enterprises issues bonds that have a
$1,550,000 par value, mature in 20...
On January 1, Boston Enterprises issues bonds that have a
$1,550,000 par value, mature in 20 years, and pay 7% interest
semiannually on June 30 and December 31. The bonds are sold at
par.
1. How much interest will Boston pay (in cash) to
the bondholders every six months?
2. Prepare journal entries to record (a) the
issuance of bonds on January 1, (b) the first interest payment on
June 30, and (c) the second interest payment on December 31....
6. On January 1, 2019, Larkspur Corporation issued $500,000,
10%, 5-year bonds, at 98. The bonds...
6. On January 1, 2019, Larkspur Corporation issued $500,000,
10%, 5-year bonds, at 98. The bonds pay semiannual interest on
January 1 and July 1. The company uses the straight-line method of
amortization for bond premium and discount.
Prepare all of the journal entries that
Larkspur Corporation would make related to this bond issue on
a) The January 1, 2019 issue date.
b) The July 1, 2019 interest payment date.
c) Based on the above information, what was the carrying...
41) On January 1, 20X3, Middleton Industries issued $5 million
of 5-year, 9% debentures at par...
41) On January 1, 20X3, Middleton Industries issued $5 million
of 5-year, 9% debentures at par which are dated as of January 1,
20X3.
Prepare the journal entries to record the
(a) issuance of the bonds.
(b) the first semi-annual interest payment.
(c) the payment of maturity value.
42) Callton, Inc., had a 6-year, 8%, $375,000 bonds ready to be
sold on January 1, 20X3. The bonds will pay interest every June 30
and December 31. However, due to market...
Lauren Corporation authorized a $2,000,000, 10-year, 8% bond
issue dated January 1, 2018, with semi-interest to...
Lauren Corporation authorized a $2,000,000, 10-year, 8% bond
issue dated January 1, 2018, with semi-interest to be paid each
December 3 On January 1, 2018, the bonds were issued for $2,294,000
to yield a market interest rate of 6%.
Required (10
points):
Were the bonds sold at par, at a discount, or at a
premium?
Prepare the entry to record the issuance of the bonds.
Prepare the entry to record the interest payment on December
31, 2018, assuming the effective-interest...
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)