The following are two independent situations.1.2.Crane plc. redeemed £121,000 face value, 10% bonds on June 30, 2020, at 102. The carrying value of the bonds at theredemption date was £108,500. The bonds pay annual interest, and the interest payment due on June 30, 2020, has beenmade and recorded.For each independent situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles areautomatically indented when amount is entered. Do not indent manually.)1.Tastove Inc. redeemed £155,000 face value, 11% bonds on June 30, 2020, at 96. The carrying value of the bonds at theredemption date was £157,650. The bonds pay annual interest, and the interest payment due on June 30, 2020, has beenmade and recorded.No. Account Titles and Explanation2.DebitCreditNAR

The objective of the question is to prepare the appropriate journal entries for the redemption of…

Answered: The following are two independent…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are independent situations. 1. Wildhorse Co. redeemed $125,100 face value, 9% bonds on June 30, 2020, at 103. The carrying value of the bonds at the redemption date was $114,100. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. prepare the appropriate journal entry for the redemption or conversion of the bonds.
The situations presented here are independent of each other.For each situation, prepare the appropriate journal entry for the redemption of the bonds. Kingbird, Inc. redeemed $168,000 face value, 14.5% bonds on June 30, 2022, at 99. The carrying value of the bonds at the redemption date was $181,440. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded. Date Account Titles and Explanation Debit Credit Jun. 30 enter an account title for the journal entry on June 30enter an account title for the journal entry on June 30
The following situations are independent of each other. Instructions For situation (a) and situation (b), prepare the entry to "redeem" the bonds. a) MCo. redeemed $140,000 face value, 9% bonds on April 30, 2022, at 101. The carrying value of the bonds at the redemption date was $126,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. To create the journal entry: (1) Bonds are "redeemed" at face value (DR "Bonds R"). (2) calculate CASH paid out to redeem bonds (a $1,000 bond redeemed at 102 means cash paid out (a CR) of $1,020). (3) calculate "premium" or "discount" on bonds payable by (face value - carrying value). If carrying value LESS THAN face value = a "discount" (CR "discount on..."). If carrying value GREATER THAN face value = a "premium" (DR "premium on..."). (4) Calculate gain or loss on redemption by plugging in DR $ ("loss...") or CR $ ("gain...") so that total $ DR = total $ CR. Situation (a) journal entry (Read…
The situations presented here are independent of each other.For each situation, prepare the appropriate journal entry for the redemption of the bonds. Pina Colada Corp. redeemed $136,000 face value, 9% bonds on April 30, 2022, at 101. The carrying value of the bonds at the redemption date was $122,808. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. Date Account Titles and Explanation Debit Credit Apr. 30 enter an account title for the journal entry on April 30enter an account title for the journal entry on April 30
On the day Federer Ltd redeemed its $1,000,000 face value bonds at 98, their carrying value was $1,200,000. Prepare a residual analysis for the bond redemption. Prepare the journal entry for the bond redemption. If you recognise a gain or loss, state where in the Statement of Comprehensive Income the gain or loss should appear
prepare the appropriate journal entry for the redemption or conversion of the bonds. Pharoah Company redeemed $155,000 face value, 17% bonds on June 30, 2020, at 96. The carrying value of the bonds at the redemption date was $158,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.
Record the issue of the bonds on July 31,2024. (List debit entry before credit entry. Record the payment of interest on January 31, 2025, assuming the semi-annual amortization amount for this interest period is \$895. (list all debit entries before credit entries Please answer all three requirements without image format answer thanku
(c) Assume that on July 1, 2027, Swifty Co. redeems half of the bonds at a cost of $1,126,600 plus accrued interest. Prepare the journal entry to record this redemption. (Round present value factor to 5 decimal places, e.g. 1.24356 and final answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date July 1, 2027 July 1, 2027 Account Titles and Explanation (To record interest) (To record reacquisition) Debit Credit 11 TILL
On August 1, 2022, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Martinez’s year-end is December 31. Prepare the journal entry to record the issuance of the bonds. Prepare the journal entry to record the accrual of interest on December 31, 2022. Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the accrual of interest on December 31, 2017enter an account title to record the accrual of interest on December 31, 2017
2. On July1, 2018, Dixon Inc. issued bonds with a $500,000 face value at 96.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 11%. Interest is payable annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For each of the following journal entries there is one account's treatment (DR or CR), that depends on whether it is a bond issued at a premium or a discount. You are to identify if it is a DR or a CR. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). July 1, 2018: to record issuing the bonds DR DR/CR ? CR June 30, 2019: to record the amortization & payment of interest to bondholders: DR…
Novak Corp. redeemed $148,000 face value, 12% bonds on April 30, 2022, at 102. The carrying value of the bonds at the redemption date was $134,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. Prepare the appropriate journal entry for the redemption of the bonds.
Crane Company redeemed $178,000 face value, 17.5% bonds on June 30, 2022, at 98. The carrying value of the bonds at the redemption date was $190,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded. Prepare the appropriate journal entry for the redemption of the bonds.

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