Question

Pink Company owns an 80% interest in Slight, Inc. On January 1, 2013, Slight issued $100,000...

Pink Company owns an 80% interest in Slight, Inc. On January 1, 2013, Slight issued $100,000 of 9-year, 12% bonds for $100,000 (Face = $100,000= price). On 1/2/2014, Pink purchased all of the outstanding bonds for $102,400. The interest is paid annually. Both firms use the straight-line method of amortization. For simplicity, assume that Pink Company holds the bond until maturity.

Prepare the B1 journal entry for 12/31/2017.

Homework Answers

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
Powell Company owns an 80% interest in Sauter, Inc. On January 1, 20X1, Sauter issued $400,000...
Powell Company owns an 80% interest in Sauter, Inc. On January 1, 20X1, Sauter issued $400,000 of 10-year, 12% bonds at a premium of $25,000. On December 31, 20X5, 5 years after original issuance, Powell purchased all of the outstanding bonds for $390,000. Both firms use the straight-line method of amortization. What is the gain on retirement on the 20X5 consolidated income statement?
Problem#3. On January 1 2013, Louis Company issued bonds. Bonds data: Maturity (par value): $100,000. Bond...
Problem#3. On January 1 2013, Louis Company issued bonds. Bonds data: Maturity (par value): $100,000. Bond term: 4-years. Stated interest rate: 10% annually Market interest rate: 10% annually Interest is paid every year January 1st. Required:  Calculate the bond selling price 1) Bond selling price = _____________________________ 2) Is this a bond with premium or discount? Explain why. 1) Prepare journal entry on January 1, 2013.
Garrison Company issued $2,000,000, 7%, 20-year bonds on January 1, 2017, at 105. Interest is payable...
Garrison Company issued $2,000,000, 7%, 20-year bonds on January 1, 2017, at 105. Interest is payable annually on January 1. Garrison uses straight-line amortization for bond premium or discount. (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2017. (c) The payment of interest on January 1, 2018. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
A company issued 10-year, 7.00% bonds with a face value of $100,000. The company received $97,947...
A company issued 10-year, 7.00% bonds with a face value of $100,000. The company received $97,947 for the bonds. Using the straight-line method of amortization, the amount of interest expense for the first interest period is:
Trader Joes issues $5,000,000 of 8%, 4-year bonds dated January 1, 2013, that pay interest semiannually...
Trader Joes issues $5,000,000 of 8%, 4-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of 5,030,00 Prepare the January 1, 2013, journal entry to record the issuance. For each semiannual period, compute the cash payment, the straight-line premium or discount amortization the bond interest expense Cash proceeds= Cash proceeds= Bonds interest expense= cash interest paid + bond discount Bonds interest expense= Bonds interest expense= Bonds...
A company issued 10-year, 5.75% bonds with a face value of $100,000. The company received $97,857...
A company issued 10-year, 5.75% bonds with a face value of $100,000. The company received $97,857 for the bonds. Using the straight-line method of amortization, the amount of interest expense for the first annual interest period is: Multiple Choice $5,535.70 $5,750.00 $2,143.00 $5,964.30
Company issued a $100,000 face value bond on January 1, 2013.  The 10 year term bond was...
Company issued a $100,000 face value bond on January 1, 2013.  The 10 year term bond was issued at 102 and had a 3% stated rate of interest that is payable on December 31st of each year. What is the carrying value of the bond at the end of Year 3?
Capital Company issued $600,000, 10%, 20-year bonds on January 1, 2014, at 103. Interest is payable...
Capital Company issued $600,000, 10%, 20-year bonds on January 1, 2014, at 103. Interest is payable semiannually on July 1 and January 1. Capital uses the straight-line method of amortization and has a calendar year end. Instructions Prepare all (3) journal entries made in 2014 related to the bond issue. PLEASE show the journal entry for payment of interest
On January 1, 2017, Pigwell Company issued $300,000 of 5% bonds for $644,636. The bonds mature...
On January 1, 2017, Pigwell Company issued $300,000 of 5% bonds for $644,636. The bonds mature in 10 years. Interest is payable each July 1 and January 1. The company uses the straight-line interest amortization method. Instructions Record the journal entry on January 1, 2017 and July 1, 2017. Computations: Journal Entry: Date Account Title Debit Credit
1. ABC Company signed a $600,000, 12% note payable on January 1, 2014. The note is...
1. ABC Company signed a $600,000, 12% note payable on January 1, 2014. The note is due January 1, 2020, with interest payable each July 1 and January 1. The note was issued at face value. Prepare Lucas Co’s journal entries for (a) the January note proceeds, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. 1/1/2014 7/1/2014 12/31/2014 2. Sims Company issued $850,000 of 10% bonds on January 1, 2014. The bonds are due January...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT