On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $544,462. Surreal uses the simplified effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Make a bond amortization schedule. 2-5. Make the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 103. Required 1 is in image attached! Required 2 to 5 Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 103. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) Journal entry worksheet Record the issuance of 560 bonds at face value of $1,000 each for $544,462. (Note: Enter debits before credits.) Date General Journal Debit Credit Jan 01, 2018 [ ] [ ] [ ] Record the interest payment on December 31, 2018. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31, 2018 [ ] [ ] [ ] Record the interest payment on December 31, 2019. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31, 2019 [ ] [ ] [ ] Record the interest and face value payment on December 31, 2020. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31, 2020 [ ] [ ] [ ] Record the retirement of the bonds at a quoted price of 103, assuming the bonds are retired on January 1, 2020. (Note: Enter debits before credits.) Date General Journal Debit Credit Jan 01, 2020 [ ] [ ] [ ]

On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $544,462. Surreal uses the simplified effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Make a bond amortization schedule. 2-5. Make the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 103. Required 1 is in image attached! Required 2 to 5 Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 103. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) Journal entry worksheet Record the issuance of 560 bonds at face value of $1,000 each for $544,462. (Note: Enter debits before credits.) Date General Journal Debit Credit Jan 01, 2018 [ ] [ ] [ ] Record the interest payment on December 31, 2018. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31, 2018 [ ] [ ] [ ] Record the interest payment on December 31, 2019. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31, 2019 [ ] [ ] [ ] Record the interest and face value payment on December 31, 2020. (Note: Enter debits before credits.) Date General Journal Debit Credit Dec 31, 2020 [ ] [ ] [ ] Record the retirement of the bonds at a quoted price of 103, assuming the bonds are retired on January 1, 2020. (Note: Enter debits before credits.) Date General Journal Debit Credit Jan 01, 2020 [ ] [ ] [ ]

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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Related questions

Question

Required:

1. Make a bond amortization schedule.
2-5. Make the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 103.

Required 1 is in image attached!

Required 2 to 5

Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 103. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.)

Journal entry worksheet

Record the issuance of 560 bonds at face value of $1,000 each for $544,462. (Note: Enter debits before credits.)