←On January 1, 2024, Aaron Unlimited issues 15%, 15-year bonds payable with a face value of $230,000. The bonds are issued at 106 and pay interest on June 30 and December 31. (Assume bonds payable areamortized using the straight-line amortization method.)Read the requirements.Requirements1. Journalize the issuance of the bonds on January 1, 20242. Journalize the semiannual interest payment and amortization of bond premiumon June 30, 2024.3.4. Journalize the retirement of the bond at maturity, assuming the last interestpayment has already been recorded. (Give the date)Journalize the semiannual interest payment and amortization of bond premiumon December 31, 2024.- Х

Bond is an financial instruent which is issued to raise funds. Bond is treated as debt and form part…

On January 1, 2024, Aaron Unlimited issues 15%, 15-year bonds payable with a face value of $230,000. The bonds are issued at 106 and pay interest on June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Read the requirements Requirements 1. 2. - X Journalize the issuance of the bonds on January 1, 2024 Journalize the semiannual interest payment and amortization of bond premium on June 30, 2024. 3. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2024. 4. Journalize the retirement of the bond at maturity, assuming the last interest payment has already been recorded. (Give the date

On January 1, 2024, Aaron Unlimited issues 15%, 15-year bonds payable with a face value of $230,000. The bonds are issued at 106 and pay interest on June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Read the requirements Requirements 1. 2. - X Journalize the issuance of the bonds on January 1, 2024 Journalize the semiannual interest payment and amortization of bond premium on June 30, 2024. 3. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2024. 4. Journalize the retirement of the bond at maturity, assuming the last interest payment has already been recorded. (Give the date

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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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.
Volunteer 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 premium
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Aggies 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
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