Homework Answers
| Date | Account titles & Explanations | Debit | Credit | ||||
| a. | Cash | 25,000,000 | |||||
| Bonds payable | 25,000,000 | ||||||
| b. | Cash | 26,250,000 | |||||
| premium on bonds payable | 1,250,000 | ||||||
| Bonds payable | 25,000,000 | ||||||
| c. | Cash | 23,084,000 | |||||
| Discount on bonds payable | 1,916,000 | ||||||
| Bonds payable | 25,000,000 | ||||||
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24. Falco Inc. issued bonds on July 1, 2014 with a face value of $25,000,000. Record...
On March 1, 2015, Sherwin, Inc. issued bonds with a face value of $800,000. The bonds...
On March 1, 2015, Sherwin, Inc. issued bonds with a face value of $800,000. The bonds carry a face interest rate of 12 percent that is payable each June 30 and December 31. The bonds were sold at 100. Sherwin's accounting year ends on December 31. Prepare an entry in journal form without explanation to record the issuance of the bonds on March 1, 2015. Prepare an entry in journal form without explanation to record the interest payment on June...
Dallas Clothing Company issued $400,000 of 6% serial bonds on July 1, 2019, at face value....
Dallas Clothing Company issued $400,000 of 6% serial bonds on July 1, 2019, at face value. The bonds are dated July 1, 2019; they call for semiannual interest payments on July 1 and January 1; and they mature at the rate of $100,000 per year, with the first maturity date falling on July 1, 2020. The company's accounting period ends on September 30. A. Prepare the journal entry to record the issuance of the bonds on July 1, 2019. B....
Pinkerton Corporation issued $4,000,000 of 6%, 20-year bonds payable at par value on January 1, 2016. Interest is payable each June 30 and December 31. Required: a The bonds were sold at their face va...
Pinkerton
Corporation issued $4,000,000 of 6%, 20-year bonds payable at par
value on January 1, 2016. Interest is payable each June 30 and
December 31. Required: a The bonds were sold at their face value b
The bonds were sold for $3,208,336 c The bonds were sold for
$5,049,260 Prepare the calculations and journal entries to record
the issuance of the bond and the first interest payment under the
following three situations:
Pinkerton Corporation issued $4,000,000 of 6%, 20-year bonds...
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1....
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January (b) Prepare the general journal entry to record the first interest payment on June 30. 2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date...
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate...
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is [Select ] DR Bonds Payable $787,500 CR Cash $787,500 DR Bonds Payable $750,000 CR Cash $750,000 DR Cash $787,500 CR Bonds Payable $787,500 DR Cash $750,000 CR Bonds Payable $750,000 Assuming interest is paid annually on De Brest payments? [Select] What is the journal entry recorded when...
Chips Inc. issued $2,500,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for...
Chips Inc. issued $2,500,000 of convertible 10-year bonds on July 1, 2020. The bonds provide for 12% interest payable semiannually on January 1 and July 1 and Chips uses effective interest amortization. On the date of issuance, the market rate of interest was 14%. The bonds are convertible after one year into 8 shares of Chips Inc.'s $100 par value common stock for each $1,000 of bonds. On Jan 1, 2022, $250,000 of bonds were turned in for conversion into...
Problem 6 On January 1, 2014, Irish, Inc. issued 10-year bonds of $500,000 face value at...
Problem 6 On January 1, 2014, Irish, Inc. issued 10-year bonds of $500,000 face value at 103. Interest is payable on June 30 and December 31 at 8%. On April 1, 2015, Irish reacquires $100,000 bonds at 99 plus accrued interest. The fiscal period for Irish is the calendar year. The straight-line method is used to amortize any premium or discount. Prepare entries to record: A) the issuance of the bonds and B) the reacquisition and retirement of the bonds.
On January 31, 018, Driftwood Logistics, Inc., issued five-year, 2% bonds payable with a face value...
On January 31, 018, Driftwood Logistics, Inc., issued five-year, 2% bonds payable with a face value of $11,000,000. The bonds were issued at 94 and pay interest on January 31 and July 31. Driftwood Logistics amortizes bond discounts using the straight-line method.Read the requirement a. Record the issuance of the bond payable on January 31, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Jan 31 Cash Discount on Bonds...
On January 1, Innovative Solutions, Inc., issued $210,000 in bonds at face value. The bonds have a stated intere...
On January 1, Innovative Solutions, Inc., issued $210,000 in bonds at face value. The bonds have a stated interest rate of 7 percent. The bonds mature in 10 years and pay interest once per year on December 31 Required: 1,2 & 3. Prepare the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 102 (if...
Bonds Bonus On June 30, 2014, Upton, Inc. sold $100,000 of 8% bonds for $102,530. The...
Bonds Bonus On June 30, 2014, Upton, Inc. sold $100,000 of 8% bonds for $102,530. The bonds are dated June 30, 2014, pay interest annually on June 30, and will mature on June 30, 2019. On the basis of the above information, answer the following questions. (Round your answer to the nearest dollar or percent if necessary.) 1. What is the stated (face value) interest rate for this bond issue? 2. Were the bonds issued at a premium or a...
Dallas Clothing Company issued $400,000 of 6% serial bonds on July 1, 2019, at face value. The bonds are dated July 1, 2019; they call for semiannual interest payments on July 1 and January 1; and they mature at the rate of $100,000 per year, with the first maturity date falling on July 1, 2020. The company's accounting period ends on September 30. A. Prepare the journal entry to record the issuance of the bonds on July 1, 2019. B....
Pinkerton
Corporation issued $4,000,000 of 6%, 20-year bonds payable at par
value on January 1, 2016. Interest is payable each June 30 and
December 31. Required: a The bonds were sold at their face value b
The bonds were sold for $3,208,336 c The bonds were sold for
$5,049,260 Prepare the calculations and journal entries to record
the issuance of the bond and the first interest payment under the
following three situations:
Pinkerton Corporation issued $4,000,000 of 6%, 20-year bonds...
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January (b) Prepare the general journal entry to record the first interest payment on June 30. 2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date...
Question 3 1 pts If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record the issuance is [Select ] DR Bonds Payable $787,500 CR Cash $787,500 DR Bonds Payable $750,000 CR Cash $750,000 DR Cash $787,500 CR Bonds Payable $787,500 DR Cash $750,000 CR Bonds Payable $750,000 Assuming interest is paid annually on De Brest payments? [Select] What is the journal entry recorded when...
Problem 6 On January 1, 2014, Irish, Inc. issued 10-year bonds of $500,000 face value at 103. Interest is payable on June 30 and December 31 at 8%. On April 1, 2015, Irish reacquires $100,000 bonds at 99 plus accrued interest. The fiscal period for Irish is the calendar year. The straight-line method is used to amortize any premium or discount. Prepare entries to record: A) the issuance of the bonds and B) the reacquisition and retirement of the bonds.
On January 1, Innovative Solutions, Inc., issued $210,000 in bonds at face value. The bonds have a stated interest rate of 7 percent. The bonds mature in 10 years and pay interest once per year on December 31 Required: 1,2 & 3. Prepare the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 102 (if...
Bonds Bonus On June 30, 2014, Upton, Inc. sold $100,000 of 8% bonds for $102,530. The bonds are dated June 30, 2014, pay interest annually on June 30, and will mature on June 30, 2019. On the basis of the above information, answer the following questions. (Round your answer to the nearest dollar or percent if necessary.) 1. What is the stated (face value) interest rate for this bond issue? 2. Were the bonds issued at a premium or a...
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