Surf's Up is a manufacturer of surfing supplies and training equipment. On January 1, 2021. Surf's Up Issues 7% 10-year bonds with a face amount of $51,000 for $51.000 to finance Its new warehouse. The market Interest rae for bonds of similar nisk and maturity is 7%. Interest is pald annually on December 31. Required: 1. & 2 Record the bond issue and first interest payment on December 31, 2021. (If no entry Is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transaction st Journal entry worksheet 2 Record the bond issue on January 1, 2021. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021 Record entry Clear entry View general journal

Surf's Up is a manufacturer of surfing supplies and training equipment. On January 1, 2021. Surf's Up Issues 7% 10-year bonds with a face amount of $51,000 for $51.000 to finance Its new warehouse. The market Interest rae for bonds of similar nisk and maturity is 7%. Interest is pald annually on December 31. Required: 1. & 2 Record the bond issue and first interest payment on December 31, 2021. (If no entry Is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transaction st Journal entry worksheet 2 Record the bond issue on January 1, 2021. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021 Record entry Clear entry View general journal

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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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
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
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
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