Homework Answers
When the interest is paid semi annually by cash the following entry should be passed:
30th June Bond Interest Expense account Dr. 28560
To Cash 28560
(Being interest paid on bonds)
If the interest will be paid on December 31st, then we should pass the following entry:
30th June. Bond Interest Expense account Dr. 28560
To Interest payable 28560
(Being interest payable on bonds)
31st Dec Interest payable account Dr. 28560
To Cash. 28560
(Being interest paid )
Amortization of Premium
Total bond value = 714000+28560= 742560
Given value = 749700
Premium = 749700-742560 = 7140
This premium should be amortised on straight line basis for 10 years ( 7140/10 = 714)
Entry:
Premium on bonds payable account Dr. 714
To Interest Expense account. 714
(Being bond premium amortised)
Add Answer to:
Please help! Thank you!
Instruction ia nual interest of S28 560 ($714.000 r 8% x 12he...
Please help ASAP! Thank you very much! Instr On the first day of the fiscal year,...
Please help ASAP! Thank you very much!
Instr On the first day of the fiscal year, a company issues a S714.000, 8%, 10 -year bond that pays se annual interest of $28,560 (S 714,000 x 8% 1/2), rece ng cash of $749 700. Required Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of amortization of Accounts for exact wording of account thtles method on December 31. Refer...
Journal entry Please help ASAP, thank you! Chart of Accoun semirnual norest of S8.970 isee6,000·9% x...
Journal entry
Please help ASAP, thank you!
Chart of Accoun semirnual norest of S8.970 isee6,000·9% x 12), receiing cash of S814.040 Required: bond diacount using the straight-ine method Refer to the Chart of Accounts for exact wording of account tities 115 I Previous Ne All work saved Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-ine method on December 31. Reler to the Chart of Accounts for exact wording...
Help on interest expense and premium on bonds payable Instructions Campbell, Inc. produces and sells outdoor...
Help on interest expense and premium on bonds payable
Instructions Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1. Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the...
Bond discount, entries for bonds payable transactions, interest method of amortizing bond discount Journal Instructions Chart...
Bond discount, entries for bonds payable transactions, interest method of amortizing bond discount Journal Instructions Chart of Accounts Final Question Instructions On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash...
Trying to figure out interest expense and premium on bonds payable :) Instructions Campbell Inc. produces...
Trying to figure out interest expense and premium on bonds
payable :)
Instructions Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $11,300,000 of 10-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of $12,769,867. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the...
Help on step 2 B Instructions Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1. Campbell issued $30...
Help on step 2 B
Instructions Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1. Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.* 2. Journalize the...
Help please on interest expense and discount on bonds payable Instructions On July 1, 20Y1, Danzer Industries Inc. issu...
Help please on interest expense and discount on bonds
payable
Instructions On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the...
please help Entries for issuing and calling bonds; loss Instructions Chart of Accounts Journal Instructions Adele...
please help
Entries for issuing and calling bonds; loss Instructions Chart of Accounts Journal Instructions Adele Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account bites 2011 1 1...
On January 1, the first day of the fiscal year, a company issues a $2,750,000, 8%,...
On January 1, the first day of
the fiscal year, a company issues a $2,750,000, 8%, five-year bond
that pays semiannual interest of $110,000 ($2,750,000 x 8% x ½),
receiving cash of $2,938,110.
Journal Shaded cells have feedback. X Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. How does grading work? PAGE 10 JOURNAL Score: 29/37 ACCOUNTING EQUATION...
Only need help with part B. Thank you. Fosters Manufacturing Co. warrants its products for one...
Only need help with part B. Thank you.
Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales were $1,500,000 for January. On February 7, a customer received warranty repairs requiring $325 of parts and $120 of labor. Required: a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. Refer to the Chart of...
Please help ASAP! Thank you very much!
Instr On the first day of the fiscal year, a company issues a S714.000, 8%, 10 -year bond that pays se annual interest of $28,560 (S 714,000 x 8% 1/2), rece ng cash of $749 700. Required Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of amortization of Accounts for exact wording of account thtles method on December 31. Refer...
Journal entry
Please help ASAP, thank you!
Chart of Accoun semirnual norest of S8.970 isee6,000·9% x 12), receiing cash of S814.040 Required: bond diacount using the straight-ine method Refer to the Chart of Accounts for exact wording of account tities 115 I Previous Ne All work saved Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-ine method on December 31. Reler to the Chart of Accounts for exact wording...
Help on interest expense and premium on bonds payable
Instructions Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1. Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the...
Bond discount, entries for bonds payable transactions, interest method of amortizing bond discount Journal Instructions Chart of Accounts Final Question Instructions On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash...
Trying to figure out interest expense and premium on bonds
payable :)
Instructions Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $11,300,000 of 10-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of $12,769,867. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the...
Help on step 2 B
Instructions Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1. Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.* 2. Journalize the...
Help please on interest expense and discount on bonds
payable
Instructions On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the...
please help
Entries for issuing and calling bonds; loss Instructions Chart of Accounts Journal Instructions Adele Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account bites 2011 1 1...
On January 1, the first day of
the fiscal year, a company issues a $2,750,000, 8%, five-year bond
that pays semiannual interest of $110,000 ($2,750,000 x 8% x ½),
receiving cash of $2,938,110.
Journal Shaded cells have feedback. X Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. How does grading work? PAGE 10 JOURNAL Score: 29/37 ACCOUNTING EQUATION...
Only need help with part B. Thank you.
Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales were $1,500,000 for January. On February 7, a customer received warranty repairs requiring $325 of parts and $120 of labor. Required: a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. Refer to the Chart of...
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