Ivanhoe Company issued $456,000 of 10%, 20-year bonds on January 1, 2020, at 101. Interest is payable semiannually on July 1 and January 1. Ivanhoe Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020.
Ivanhoe Company issued $456,000 of 10%, 20-year bonds on January 1, 2020, at 101. Interest is payable semiannually on July 1 and January 1. Ivanhoe Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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Question
Ivanhoe Company issued $456,000 of 10%, 20-year bonds on January 1, 2020, at 101. Interest is payable semiannually on July 1 and January 1. Ivanhoe Company uses the straight-line method of amortization for bond premium or discount.
Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
(a) | The issuance of the bonds. | |
(b) | The payment of interest and the related amortization on July 1, 2020. | |
(c) | The accrual of interest and the related amortization on December 31, 2020. |
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
1/1/20
|
enter an account title for the
|
enter a debit amount
|
enter a credit amount
|
enter an account title for the journal entry on January 1
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the journal entry on January 1
|
enter a debit amount
|
enter a credit amount
|
|
7/1/20
|
enter an account title for the journal entry on July 1
|
enter a debit amount
|
enter a credit amount
|
enter an account title for the journal entry on July 1
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the journal entry on July 1
|
enter a debit amount
|
enter a credit amount
|
|
12/31/20
|
enter an account title for the journal entry on December 31
|
enter a debit amount
|
enter a credit amount
|
enter an account title for the journal entry on December 31
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the journal entry on December 31
|
enter a debit amount
|
enter a credit amount
|
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