A $375,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $320,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.
Q: Question 8 What are the educational requirements to receive a CPA certificate in the State of…
A: CPA means certificate of Public Accountant. This is very renowned profession and held by the…
Q: Edwards Corporation used the following data to evaluate their current operating system. The company…
A: In calculation of Static Budget variance of Revenues, the Budgeted revenues are compared with Actual…
Q: In preparing a company's statement of cash flows using the Indirect method, the following…
A: Statement of Cash flows is a Summary of all expected cash inflows and cash outflows incurred during…
Q: Sunshine Corporation's contribution format income statement for October is shown below. $228,000…
A: Working Note: Current selling price = Sales / No. of units = $228,000/24,000 = $9.50 per unit
Q: A $530,000 bond issue on which there is an unamortized discount of $37,000 is redeemed for $476,000.…
A: Bonds are the securities that are issued by the business entities or government to raise funds from…
Q: Accounting AA Corporation is a C corporation. In 2017, sales are $500,000; cost and expenses are…
A: Total Sales $500000 Less: cost ($420000) Current year’s income $80000 NOL carried…
Q: Revenues in 2017 were $550,000 The selling price per unit and the purchase price per pound of direct…
A: Total cost - other cost = Direct material cost
Q: Noura Company offers an annual bonus to employees (to be shared equally) if the company meets…
A: The bonus owed to workers is liability which is required to be reported on balance sheet.
Q: Marchant Urban Diner is a charity supported by donations that provides free meals to the homeless.…
A: Calculation of Groceries Expenses Groceries = 1,800 meals X $ 3.85 per meal Groceries = $ 6,930…
Q: Dell Bhd bought a plant from an Australian company for AUD350,000 on 1 April 2021 when the exchange…
A:
Q: asset nabllity year End Beginning Cash $ 62,000 $73,000 Accounts receivable (net) 75,000 60,000…
A: Cash flow from operating activities refers to the money a company makes from ongoing, regular…
Q: Based on the following data for the current year, what is the number of days' sales in inventory?…
A: Inventory turnover ratio is a ratio which determines how efficiently and effectively the inventory…
Q: 18). During prior periods, the Rocket Company used the double-declining balance method for…
A: The straight-line method of depreciation is levied on the cost price of the asset acquired by the…
Q: Explain the multiplier effect by analysing how a typical consumer would react to this tax cut and…
A: Fiscal multipliers measure the impact of discretionary fiscal policy on output of the economy.They…
Q: Choose the correct answer. How tO build customer loyalty? Select one: a. Give at least 30% discount…
A: Customer loyalty is a quality of customers who tend to purchase goods repeatedly from the same…
Q: Cash $20,000 $60,000 $160,000 $400,000 $60,000 $20,000 $140,000 Accounts Receivable Inventory…
A: Introduction: Working capital: Deduction of current liabilities from current assets derives the…
Q: an annual rate of 15% for 5 years.
A: In simple interest the interest is calculated by multiplying the principal with time and interest…
Q: D. Red, White, and Blue are partners who share profits and losses 20%; 30%; and 50% respectively.…
A: Introduction:- Partnership business means two or more persons form together for making profit and…
Q: the Table
A: Given as, Exemption Rate $20M 50% $18M 45% $16M 35% $5M 30%
Q: flexible exchange rates. Assume the economy is initially at full employment. a) Suppose a…
A: AA-DD model describe with the diagram the consist of the two curves the asset which represent the…
Q: Ethical lapses and poor judgement often come from a sense of entitlement. What are some things a…
A: How can ethical Judgement be improved?As ethical behaviour becomes increasingly important in…
Q: H plc owns 80% of the the voting shares of S plc. S plc is a subsidiary of H plc. The most recent…
A: Introduction An affiliate may make loans to another affiliate of may transfer the debt of affiliate…
Q: State six users of accounting information and explain how each uses the information
A: Accounting information includes financial statements produced by bookkeeping and accounting methods,…
Q: Queen's Move plc specializes in household removals and storage services. The business runs its own…
A:
Q: 18:44 2 d t 68 < 22-22-ned Prepare a flexible budgeted income statement for 47,000 units u si ng the…
A: Flexible budget is a type of budget which can be changed as per the activity level. The variable…
Q: During October, Keliihoomalu Clinic budgeted for 2,700 patient-visits, but its actual level of…
A: Lets understand the basics. Management prepare flexible budget to know the amount of net operating…
Q: A country’s current account position moves from a surplus to a deficit. What will be the result?…
A: Current Account Current Account means recording a nation’s transactions with the rest of the world.…
Q: Provide a brief explanation of why depreciation of capital assets is considered in determining…
A: Capital assets are those assets which are held by the business for longer period of time.…
Q: SportsWorld purchased equipment costing $10,000. The equipment has a residual value of $1,000, and…
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…
Q: Your Division makes a part that can either be sold to outside customers or transferred internally to…
A: As per the general transfer pricing rule, in the case of sufficient capacity available, the minimum…
Q: An S corporation shareholder's basis may be affected by some or all business liabilities a. Never
A: Here discuss the details of the basis shareholders in the S Corporation whether it may be affected…
Q: feltri Corporation is working on its direct labor budget for the next two months. Each unit of…
A: October Number of hours budgeted to be consumed in October = 7,100 units X 0.77 direct labor hours…
Q: E9-17 (Algo) Computing a Present Value Involving an Annuity and a Single Payment LO 9-7 You have…
A: Present value = (PMT*(1-(1+r)^-n)/r) + (FV*(1+r)^-n)
Q: Required: Prepare a consolidated income statement for Pam Corporation and Subsidiary for the year…
A: Consolidated Income Statement Particulars Amount Sales 1,800,000 Less: Cost of Sales 950,000…
Q: Chavez Company’s salaried employees earn four weeks’ vacation per year. Chavez estimated and must…
A: Introduction:- Journal entry is the first stage of accounting process. Which is used to record…
Q: What is the production budgeted for the second quarter? Company policy is to have a finished goods…
A: Production budget shows the number of units to be produced by the company in the given period. It is…
Q: Given the following information, prepare a production report with materials added at the beginning…
A: GIVEN Given the following information, prepare a production report with materials added at the…
Q: Refer to the following selected financlal Information from Texas Electronics. Compute the company's…
A: Working Capital for Year 2 = Cash + Short Term Investment + Account Receivables + Merchandise…
Q: Ben and Jack Partnership had the following results during the taxable year: Income from operations…
A: Ben & Jack Partnership reported a loss from operations during a taxable year of $ 1,10,000.…
Q: e following totals for the month of June were taken from the payroll register of Arcon Company:…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Oxnard Industries produces a product that requires 2.6 pounds of materials per unit. The allowance…
A: Solution... Standard quantity used = 2.60 pounds Allowances for wastage = 0.30 pounds…
Q: Ralph's Services Adjusted Trial Bal. at Dec. 31/07 Debit Credit Cash $4,300 Accts. Receivable 1,400…
A:
Q: Berol Company plans to sell 200,000 units of finished product in July and anticipates a growth rate…
A: The production budget is prepared to estimate the number of units to be produced during the period.
Q: (Ignore income taxes in this problem) Your Corporation is considering the purchase of a machine that…
A: The internal rate of return (IRR) is a discounting cash flow technique which gives a rate of return…
Q: Pinnacle Co., prepares quarterly interim financial reports. The entity sells electric fans and…
A: Interim financial statements are those statements which cover the period of less than a year and it…
Q: Overstitch Textiles Company makes silk banners and uses the FIFO method of process costing. Direct…
A: The equivalent units of the production are determined by considering the portion of material and…
Q: Which of the following accounts will appear on the post-closing trial balance? Question 37 Owner's…
A:
Q: The following is not an exchange where public company stocks are listed for trading: Answers:…
A: Solution :- Wall Street Journal All Three NASDAQ, NYSE, Pink Streets are stock exchanges where…
Q: 1. Calhoun Discount Drugs Sales: $382,000 Cost of goods sold: $106,000 Gross profit: ? Operating…
A: Vertical analysis means the analysis which is done with the figures of one financial year. For…
Q: Bonds Payable has a balance of $1,137,000 and Discount on Bonds Payable has a balance of $13,644. If…
A: Bonds: Bonds is a long-term liability of a company where it has to repay the principal amount along…
Question Content Area
A $375,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $320,000. Journalize the redemption of the bonds.
If an amount box does not require an entry, leave it blank.
- | |||
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- MASTERY PROBLEM Jackson, Inc.s fiscal year ends December 31. Selected transactions for the period 20-1 through 20-8 involving bonds payable issued by Jackson are as follows: 20-1 Oct. 31 Issued 600,000 of 10-year, 7%, callable bonds dated October 31, 20-1, for 612,000. Interest is payable semiannually on October 31 and April 30. The bond indenture provides that Jackson is to pay to the trustee bank 20,000 by May 15 of each year (except the tenth year) as a sinking fund for the retirement of the bonds on call or at maturity. Dec. 31 Made the adjusting entry for interest payable and amortized two months premium on the bonds (straight-line method). 20-2 Jan. 2 Reversed the adjusting entry for interest payable and bond premium amortization. Apr. 30 Paid the semiannual interest on the bonds and amortized six months premium. May 15 Paid the sinking fund trustee 20,000. Oct. 31 Paid the semiannual interest on the bonds and amortized six months premium. Dec. 31 Made the adjusting entry for interest payable and amortized two months premium on the bonds. 31 Sinking fund earnings for the year were 900. 20-8 May 15 Paid the sinking fund trustee 20,000. Oct. 31 Paid the semiannual interest on the bonds and amortized six months premium. 31 Redeemed the bonds, which were called at 97. The balance in the bond premium account is 3,600 after the payment of interest and amortization of premium have been entered. The cash balance in the sinking fund is 200,000, which is applied to the redemption. Jackson paid the sinking fund trustee the additional cash needed to pay off the bonds. (Hint: First make the entry for payment to the sinking fund, then make the entry for redemption of the bonds.) REQUIRED 1. Enter the preceding transactions in general journal form. 2. Calculate the carrying value of the bonds as of December 31, 20-2.Cornerstone Exercise (Appendix 9A) Bond Issue Price On January 1, 2021, Callahan Auto issued $900,000 of 9%, 10-year bonds. Interest is payable semiannually on June 30 and December 31. Required: What is the issue price if the bonds are sold to yield 8%? (Note: Round to the nearest dollar.)Brief Exercise Debt Issued at Par On January 1, 2020, Desmond & Co. issued 5,000 bonds with a SI,000 par value at 100. The bonds have an 8% stated rate, pay interest on June 30 and December 31, and mature on December 31 2020. Required: Prepare the journal entries to record the interest payment on June 30, 2020.
- Cornerstone Exercise 9-22 Reporting Long-Term Debt on the Balance Sheet Dennis Corp. has the following bonds: $2,000,000 in bonds that have $10,000 of unamortized discount associated with them $500,000 in bonds that have $25,000 of unamortized premium associated with them. Required: Prepare the balance sheet presentation for these two bonds.Cornerstone Exercise Debt Issued at a Premium (Straight Line) Refer to the information for Ironman Steel above. Required: Prepare the amortization table for Ironman Steels bonds(Note: Round to the nearest dollar.) Use the following information for Cornerstone Exercises 9-31 and 9-32: Sicily Corporation issued $300,000 in 5% bonds (payable on December 31, 2029) on January 1, 2020, for $257,363. Interest is paid on June 30 and December 31. The market rate of interest is 7%.Cornerstone Exercise 9-23 Issuance of Long-Term Debt Anne Corp. issued $600,000, 5% bonds. Required: Prepare the necessary journal entries to record the issuance of these bonds assuming the bonds were issued (a) at par, (b) at 102, and (c) at 92.
- Cornerstone Exercise Bonds Issued at a Discount (Effective Interest) Refer to the information for Sicily Corporation above. Required: Prepare the journal entries for December 31, 2020 and 2021. Use the following information for Cornerstone Exercises 9-33 and 9-34: Crafty Corporation issued 5475,000 of 5%, 7-year bonds on January 1, 2020, for $448,484. Interest is paid annually on December 31. The market rate of interest is 6%.Brief Exercise Issuance of Long-Term Debt Natalie Corp. provides medical supplies to hospitals located in Western Washington and Oregon. This year, Natalie Corp. issued 8,000 bonds with a $1,000 face value. The nominal rate for each bond is 7%. Required: Prepare the necessary journal entries to record the issuance of these bonds assuming the bonds were issued (a) at par, (b) at 103, and (c) at 96.REDEMPTION OF BONDS ISSUED AT A DISCOUNT Mutschelknaus Manufacturing sold bonds at a discount for 290,000 (discount of 10,000) seven years ago. (a) The corporation redeems 25,000 of this issue at 97. The unamortized discount is 350. (b) The corporation redeems 30,000 of this issue at 99. The unamortized discount is 450. Prepare journal entries to record the redemption in (a) and (b).
- Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.REDEMPTION OF BONDS ISSUED AT A DISCOUNT Medina Optical Supply sold bonds at a discount for 420,000 (discount of 20,000) eight years ago. (a) The corporation redeems 25,000 of this issue at 94. The unamortized discount is 250. (b) The corporation redeems 30,000 of this issue at 101. The unamortized discount is 300. Prepare journal entries to record the redemption in (a) and (b).Cornerstone Exercise 9-24 Issuance of Long-Term Debt EWO Enterprises issues $4,500,000 of bonds payable. Required: Prepare the necessary journal entries to record the issuance of the bonds assuming the bonds were issued (a) at par, (b) at 104.5, and (c) at 99.