Ivanhoe Company issued $459,000, 8%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Ivanhoe uses straight-line amortization for bond premium or discount.Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2017. (c) The payment of interest on January 1, 2018. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017 enter an account title to record the issuance of the bonds on January 1, 2017 enter a debit amount enter a credit amount enter an account title to record the issuance of the bonds on January 1, 2017 enter a debit amount enter a credit amount enter an account title to record the issuance of the bonds on January 1, 2017 enter a debit amount enter a credit amount (b) Dec. 31, 2017 enter an account title to record the accrual of interest and the premium amortization on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record the accrual of interest and the premium amortization on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record the accrual of interest and the premium amortization on December 31, 2017 enter a debit amount enter a credit amount (c) Jan. 1, 2018 enter an account title to record the payment of interest on January 1, 2018 enter a debit amount enter a credit amount enter an account title to record the payment of interest on January 1, 2018 enter a debit amount enter a credit amount (d) Jan. 1, 2047 enter an account title to record the redemption of the bonds at maturity on January 1, 2047 enter a debit amount enter a credit amount enter an account title to record the redemption of the bonds at maturity on January 1, 2047
Ivanhoe Company issued $459,000, 8%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Ivanhoe uses straight-line amortization for bond premium or discount.Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2017. (c) The payment of interest on January 1, 2018. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017 enter an account title to record the issuance of the bonds on January 1, 2017 enter a debit amount enter a credit amount enter an account title to record the issuance of the bonds on January 1, 2017 enter a debit amount enter a credit amount enter an account title to record the issuance of the bonds on January 1, 2017 enter a debit amount enter a credit amount (b) Dec. 31, 2017 enter an account title to record the accrual of interest and the premium amortization on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record the accrual of interest and the premium amortization on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record the accrual of interest and the premium amortization on December 31, 2017 enter a debit amount enter a credit amount (c) Jan. 1, 2018 enter an account title to record the payment of interest on January 1, 2018 enter a debit amount enter a credit amount enter an account title to record the payment of interest on January 1, 2018 enter a debit amount enter a credit amount (d) Jan. 1, 2047 enter an account title to record the redemption of the bonds at maturity on January 1, 2047 enter a debit amount enter a credit amount enter an account title to record the redemption of the bonds at maturity on January 1, 2047
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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Question
100%
Ivanhoe Company issued $459,000, 8%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Ivanhoe uses straight-line amortization for bond premium or discount.
Prepare the
(a) | The issuance of the bonds. | |
(b) | The accrual of interest and the premium amortization on December 31, 2017. | |
(c) | The payment of interest on January 1, 2018. | |
(d) | The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. |
No.
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|---|
(a)
|
Jan. 1, 2017
|
enter an account title to record the issuance of the bonds on January 1, 2017
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the issuance of the bonds on January 1, 2017
|
enter a debit amount
|
enter a credit amount
|
||
enter an account title to record the issuance of the bonds on January 1, 2017
|
enter a debit amount
|
enter a credit amount
|
||
(b)
|
Dec. 31, 2017
|
enter an account title to record the accrual of interest and the premium amortization on December 31, 2017
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the accrual of interest and the premium amortization on December 31, 2017
|
enter a debit amount
|
enter a credit amount
|
||
enter an account title to record the accrual of interest and the premium amortization on December 31, 2017
|
enter a debit amount
|
enter a credit amount
|
||
(c)
|
Jan. 1, 2018
|
enter an account title to record the payment of interest on January 1, 2018
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the payment of interest on January 1, 2018
|
enter a debit amount
|
enter a credit amount
|
||
(d)
|
Jan. 1, 2047
|
enter an account title to record the redemption of the bonds at maturity on January 1, 2047
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the redemption of the bonds at maturity on January 1, 2047
|
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