An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.
Q: Berman V. Parker is plannir which offers to lend the m
A:
Q: Sales Budget Quarter 1 Quarter 2 Quarter 3 Qu...
A:
Q: Alon is a retired Doctor. His wife Nancy is a retired Social Worker. Both wish to remain active and ...
A: All profits and losses are to be shared equally between the three partners- Alon, Heather, and Nancy...
Q: Discounting of note receivable with recourse A P1,800,000, 6-month, 10% note dated March 1 i...
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for y...
Q: Silva Chairs, Inc. makes two types of chairs. Model Diamond is a high-end product designed for profe...
A: Total costs are the sum of costs required to produce a product. And the cost per unit is the sum of ...
Q: QUESTION 14 Florist Gump, Inc. purchased land at a cost of $5,000 on February 2, 2000. At December 3...
A: Solution: As per historical cost concept, Non current assets are generally reported at their cost in...
Q: Choose ONE of the MAS studied in this unit from the list below, and answer the questions that follow...
A: given • Budgeting System
Q: QUESTION 10 Calculate the missing Operating Expenses in the following multi-step income statement: S...
A: Multiple income statements are prepared to segregate the income and expenses into different categori...
Q: Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions list...
A: Given Information :- Winkin, Blinkin, and Nod are equal shareholders in SleepEZ. Timing and income o...
Q: Safety Hospital purchased a new MRI equipment. The cost is $450,000.00. Charges to install the equi...
A: Cost = $450,000 Installment cost = $50,000 Useful life = 5 Years
Q: The qualitative characteristics of relevance, reliability and comparability identified in the IASB’s...
A: financial statement should have sufficient information in relation to quality and quantity so as to ...
Q: Subject- Audit SUMMARIZE THE CORE ISSUES for the following topic:- • ISA 805, Special Considerations...
A: An auditor is a person with the authority to examine and verify financial documents for authenticity...
Q: Complete the following table (assume the overtime for each employee is a time-and-a-half rate after ...
A: Solution: Total time worked in the week = 12 + 8 + 10 + 8 + 6 + 3 = 47 hours Regular time = 40 hours...
Q: PREPARE AN INCOME STATEMENT MARIE SWIFT Company reported the given information for the month of Octo...
A: 1. Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred to manufacture...
Q: E-25 (L08) (Bank Reconciliation and Adiusting Entries) Logan Bruno Company has just bank statement, ...
A: The bank reconciliation statement is prepared to equate the balance of cash book and pass book with ...
Q: Determine if sole proprietorship, partnership, or corporation. Select all that is applicable between...
A: Business ownership seems mostly seems in three top forms i.e sole proprietorship, partnership, or co...
Q: MARIE SWIFT Company reported the given information for the month of Octobe Inventories: P29,000 Work...
A: ln costing there are two types of cost direct cost and indirect. These cost are incurred to produce...
Q: mortgage. The partners plan to use the building to manufacture, distribute, and sell green and purpl...
A: As per given details please refer below Trial Balance and Workings :- Agreed guaranteed payments to ...
Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company. ...
A: As company started business on June 1st, hence there will not be any beginning balance.
Q: The capital accounts for the partnership of Luke and Mark at October 31, 2022 are as follows: Luke, ...
A: Answer) Under Bonus Method, total capital of the firm post admission of new partner will be equal to...
Q: Question: Calculate taxable capital gain on the sale of the House? Calculate taxable capital gain on...
A: A tax is a compulsory charge paid to the government by everyone who is generating any kind of income...
Q: Discuss when a company in the extractive industries needs to start accounting for its restoration co...
A: Answer : A company in the extractive industry start accounting for its restoration costs when there ...
Q: The business manufactures custom patios made of concrete, brick, fiberglass, and lumber- depending u...
A: answers Direct material Work in process Finished goods Beginning inventory 4200 5540...
Q: rty classifed as held for sale are presented separately as current asset. True or False?
A: Solution: Assets held for sale are those assets which the company intends to sell. These held for sa...
Q: Determine the cost of goods manufactured using the given information for July: • Direct materials_P3...
A: Cost of goods manufactured is the amount that is incurred for the production of the goods.
Q: of P200,000 from an instrument with remaining maturity of 5 years, rentals of P100,000 gross of expa...
A: In any case of interest income of bank with remaining maturity period of 5 years or less than 5 year...
Q: Financial ratios can tell an entrepreneurs about at work in his business O stresses and strains O de...
A: Financial ratios are very important in understanding the health of business and how business is goin...
Q: Susan Carrie is planning to sell her special pottery for $25 per unit. She purchases units from a l...
A: Breakeven point implies that point at which firms earn no profit and bear no loss so directly we can...
Q: Calculate the net present value of the project at an effective rate of interest of 10% per annum.
A: £400,000 is incurred in the year 0. Also construction will start in 6 months and annual construction...
Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company. ...
A: It is pertinent to note that T-accounts/Ledger accounts are the second step in a double-entry bookke...
Q: Determine the AW values for one and two life cycles at 15 % per year.
A: AW is the acronym and stands for the annual worth which means it is the cash flow which is the equal...
Q: what amount should hairy report for sales revenue in its income statement for the month of December
A: Sales revenue refers to the amount received by the company from selling goods and services to the cu...
Q: ABC Ltd enters into a five-year lease agreement with Legal Ltd on 1 July 2023 for an item of machine...
A: Initial measurement of the lease liability=Present Value of Five annual payments +Present Value of P...
Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000....
A: Formula used for gain on bond redemption: Gain on bond redemption = Bond face value + Unamortized pr...
Q: XYZ Ltd acquires 100 per cent of Red-X Ltd on 1 July 2021. XYZ Ltd pays the shareholders of Red-X Lt...
A: Goodwill is defined as the portion of the purchase price that is greater than the sum of the net fai...
Q: Choose the letter of the correct answer: 1. In which of the following situations would an investor ...
A: Solution Equity method is used to account for an organisation's investment on another entity (invest...
Q: Black Widow Corporation engaged you for the first time to audit their financial statements as of and...
A: Intangibles as of 31.12.2020 Life Balance as of 31.12.2020 Patent A 10 years 1,317,500 Patent B...
Q: a) Prepare the entries in a journal and then post to the T accounts. b) Total the T accounts and pre...
A: As per our protocol we provide solution to the first three sub-parts only but you have asked multipl...
Q: Accounts Receivable 100 Accounts Payable (4,000) Accumulated Depreciation Cost of Goods Sold 1,000 D...
A: Solution: Operating income is computed as operating revenues reduced by operating expenses. Non oper...
Q: Maturity value Discount Discount period Net proceeds from discounting Carrying amount of the notes r...
A: Maturity Value = 2,500,000 + 10% of 2500000 x 180 days /365 days = 2,623,287 Discount = 12% of 26232...
Q: What form of business pays personal income tax?
A: Income tax, as the name suggests, is calculated on the income of assessee and payable according to t...
Q: Sarasota Corp. uses a periodic inventory system. Its records show the following for the month of May...
A: Weighted Average Cost = Total cost of goods available for sale / Total no. of units available for sa...
Q: Finance leases are agreements that are formulated as leases, but are installment purchases, i.e., sa...
A: Finance Lease: In this type of lease, the notional ownership is transferred by the lessor to lessee ...
Q: Golden Eagle Company has the following balances at the end of November:
A: Transaction Date General Journal Debit Credit 1 (a) December 1 Supplies $4,100 Cash $4,...
Q: 10,000 5,961 4,039 45,638 10,000 5,477 4,523 41,114 10,000 4,934 5,066 36,048 6. 10,000 4,326 5,674 ...
A: answers Effective annual interest rate = 6394/53282= 12%
Q: A Honda car can be purchased by paying a down payment of P150,000 and the balance to be paid with tw...
A: Here, Interest Rate is 15% Compounded Semi-annually Details of First Option: Down Payment is P150,00...
Q: eld Company
A: Answer: The correct answer is d. (i.e.$ 46,500) Workings: Total Manufacturing Cost for Job No.825 ...
Q: Z. Net, an accountant, owns a business with the following assets and liabilities. Please note Capita...
A: A t-account is a log or list of accounts that keep track of account transfers
Q: Expense approach. Required: Prepare the journal entries required for 2020 using the Expense approach...
A: Journal entries refer to the process of collecting and documenting all the data of a company in its ...
Q: A depreciation schedule for semi-trucks of JIN Manufacturing Company was requested by your auditor s...
A: Truck No. Cost Depreciation in 2015 Depreciation in 2016 Depreciation in 2017 Total Accumulated Depr...
Bond redemption entry
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discountVolunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premiumAggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
- Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discountOn Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any 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. Assume the company retires the bonds on June 30, 2020, at 103 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
- 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.Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal entry to record this transaction includes ________. A. a debit to Bonds Payable for $100,000 B. a debit to Discount on Bonds Payable for $4,000 C. a credit to cash for $96,000 D. a credit to Discount on Bonds Payable for $4,000