Question

On October 1, 2021, Novak Corp. issued $840,000, 8%, 10-year bonds at face value. The bonds...

On October 1, 2021, Novak Corp. issued $840,000, 8%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31.

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

Oct. 1, 2021

enter an account title for the journal entry on October 1, 2021

enter a debit amount

enter a credit amount

enter an account title for the journal entry on October 1, 2021

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

  

  

Question Part Score

--/0.33

Prepare the adjusting entry to record the accrual of interest on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2021

enter an account title for the adjusting entry on December 31, 2021

enter a debit amount

enter a credit amount

enter an account title for the adjusting entry on December 31, 2021

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

  

  

Question Part Score

--/0.33

Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2021.

NOVAK CORP.
Balance Sheet (Partial)

choose the accounting period                                                                      For the Year Ended December 31, 2021For the Month Ended December 31, 2021December 31, 2021

select an opening name for subsection one                                                                      Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

enter a balance sheet item

$enter a dollar amount

select an opening name for subsection two                                                                      Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity

enter a balance sheet item

enter a dollar amount

eTextbook and Media

List of Accounts

  

  

Question Part Score

--/0.33

Prepare the journal entry to record the payment of interest on October 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Oct. 1, 2022

enter an account title for the journal entry on October 1, 2022

enter a debit amount

enter a credit amount

enter an account title for the journal entry on October 1, 2022

enter a debit amount

enter a credit amount

enter an account title for the journal entry on October 1, 2022

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

  

  

Question Part Score

--/0.33

Prepare the adjusting entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2022

enter an account title for the adjusting entry on December 31, 2022

enter a debit amount

enter a credit amount

enter an account title for the adjusting entry on December 31, 2022

enter a debit amount

enter a credit amount

eTextbook and Media

List of Accounts

  

  

Question Part Score

--/0.34

Assume that on January 1, 2023, Novak pays the accrued bond interest and calls the bonds. The call price is 105. Record the payment of interest and redemption 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, 2023

enter an account title to record the payment of interest on January 1, 2018

enter a debit amount

enter a credit amount

enter an account title to record the payment of interest on January 1, 2018

enter a debit amount

enter a credit amount

(To record payment of interest)

Jan. 1, 2023

enter an account title to record the redemption of the bonds on January 1, 2018

enter a debit amount

enter a credit amount

enter an account title to record the redemption of the bonds on January 1, 2018

enter a debit amount

enter a credit amount

enter an account title to record the redemption of the bonds on January 1, 2018

enter a debit amount

enter a credit amount

(To record the redemption of the bonds)

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Answer #1

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