Sheridan Company issued $501,000, 8%, 30-year bonds on January
1, 2022, at 102. Interest is payable...
Sheridan Company issued $501,000, 8%, 30-year bonds on January
1, 2022, at 102. Interest is payable annually on January 1.
Sheridan uses straight-line amortization for bond premium or
discount.
Prepare the journal entries to record the following events.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
(a)
The issuance of the bonds.
(b)
The accrual of interest and the premium amortization on
December 31, 2022.
(c)
The payment of interest on January 1, 2023....
Keaubie Co. issued $280,000, 10%, 10-year bonds payable at a
price of 95, on Jan. 1,...
Keaubie Co. issued $280,000, 10%, 10-year bonds payable at a
price of 95, on Jan. 1, 2019 a. Journalize the issuance of the
bonds b. Journalize the first semi - annual interest payment and
amortization of the discount or premium.
Debt Issued at a Premium (Straight Line) On January 1, 2020,
Ironman Steel issued $800,000, 8-year...
Debt Issued at a Premium (Straight Line) On January 1, 2020,
Ironman Steel issued $800,000, 8-year bonds for $869,000. The
stated rate of interest was 6% and interest is paid annually on
December 31. Required: Prepare the necessary journal entry on
December 31, 2023, assuming the straight-line method is followed.
2023 Dec. 31 Interest Expense Premium on Bonds Payable Cash (Record
interest expense)
On
January
1,
Year
1,
assume Smart
Touch Learning issued
10-year,
$100,000 bonds at 95% with...
On
January
1,
Year
1,
assume Smart
Touch Learning issued
10-year,
$100,000 bonds at 95% with an interest rate of 6% paid
semi-annually. Using
the
straight-line amortization
method, what
is the amount of interest expense recorded each
interest
period?
A.
3,000
B.3,250
C.
6,000
D.
6,500
On January 1, 2021, Sheridan Satellites issued $1,200,000,
10-year bonds. The bonds pay semi-annual interest on...
On January 1, 2021, Sheridan Satellites issued $1,200,000,
10-year bonds. The bonds pay semi-annual interest on July 1 and
January 1, and Sheridan has a December 31 year end. A partial bond
amortization schedule is presented below:
Semi-Annual
Interest Period
Interest
Payment
Interest
Expense
Amortization
Bond
Amortized Cost
Jan. 1, 2021
$1,114,726
July 1, 2021
$ [1]
$ [2]
$3,015
1,117,741
Jan. 1, 2022
36,000
39,121
3,121
1,120,862
July 1, 2022
36,000
39,230
[3]
1,124,092
Jan. 1, 2023
36,000
39,343...
Bonita Company sells 9% bonds having a maturity value of
$2,290,000 for $2,042,360. The bonds are...
Bonita Company sells 9% bonds having a maturity value of
$2,290,000 for $2,042,360. The bonds are dated January 1, 2020, and
mature January 1, 2025. Interest is payable annually on January
1.
Set up a schedule of interest expense and discount amortization
under the straight-line method.
Schedule of Discount Amortization
Straight-Line Method
Year
Cash
Paid
Interest
Expense
Discount
Amortized
Carrying
Amount of Bonds
Jan. 1, 2020
Jan. 1, 2020
Jan. 1, 2021
Jan. 1, 2022
Jan. 1, 2023
Jan. 1,...
On January 1, 2021, Cullumber Satellites issued $1,430,000,
10-year bonds. The bonds pay semi-annual interest on...
On January 1, 2021, Cullumber Satellites issued $1,430,000,
10-year bonds. The bonds pay semi-annual interest on July 1 and
January 1, and Cullumber has a December 31 year end. A partial bond
amortization schedule is presented below:
Semi-Annual
Interest Period
Interest
Payment
Interest
Expense
Amortization
Bond
Amortized Cost
Jan. 1, 2021
$1,328,381
July 1, 2021
$ [1]
$ [2]
$3,593
1,331,974
Jan. 1, 2022
42,900
46,619
3,719
1,335,693
July 1, 2022
42,900
46,749
[3]
1,339,542
Jan. 1, 2023
42,900
46,884...
On January 1, 2017, Shay issues $420,000 of 9%, 12-year bonds at
a price of 97.25....
On January 1, 2017, Shay issues $420,000 of 9%, 12-year bonds at
a price of 97.25. Six years later, on January 1, 2023, Shay retires
20% of these bonds by buying them on the open market at 104.50. All
interest is accounted for and paid through December 31, 2022, the
day before the purchase. The straight-line method is used to
amortize any bond discount.
3. How much amortization of the discount is
recorded on the bonds for the entire period...
13- Seed Corporation issued $200,000 of 8% bonds at 99 on
January 1, 2018. Interest is...
13- Seed Corporation issued $200,000 of 8% bonds at 99 on
January 1, 2018. Interest is to be paid annually on December
31.
a) Prepare the Journal entry to record the issuance of the
bond.
Date
Description
Debit
Credit
b) Prepare the jornal entry for the straight-line amortization
of the discount and the payment of the interest on December 31,
2018.
Date
Description
Debit
Credit
c) Prepare the jornal entry for the straight-line amortization
of the Discount and the payment...
On January 1, 2012, Concord Corporation issued $18000000 of 9%
ten-year bonds at 102. The bonds...
On January 1, 2012, Concord Corporation issued $18000000 of 9%
ten-year bonds at 102. The bonds are callable at the option of
Concord at 104. Concord has recorded amortization of the bond
premium on the straight-line method (which was not materially
different from the effective-interest method).
On December 31, 2018, when the fair value of the bonds was 95,
Concord repurchased $3980000 of the bonds in the open market at 95.
Concord has recorded interest and amortization for 2018. Ignoring...