Volunteer Inc. issued bonds with a $700,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $740,000. Interest is payable annually. The premium is amortized using the straight-line method. 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 Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank. A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 B. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 C. fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 D. fill in the blank 23 fill in the blank 24 fill in the blank 26 fill in the blank 27 E. fill in the blank 29 fill in the blank 30 fill in the blank 32 fill in the blank 33
Volunteer Inc. issued bonds with a $700,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $740,000. Interest is payable annually. The premium is amortized using the straight-line method. 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 Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank. A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 B. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 C. fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 D. fill in the blank 23 fill in the blank 24 fill in the blank 26 fill in the blank 27 E. fill in the blank 29 fill in the blank 30 fill in the blank 32 fill in the blank 33
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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Volunteer Inc. issued bonds with a $700,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $740,000. Interest is payable annually. The premium is amortized using the straight-line method.
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 Prepare
journal entries for the above transactions. If an amount box does not require an entry, leave it blank.A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 B. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 C. fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 D. fill in the blank 23 fill in the blank 24 fill in the blank 26 fill in the blank 27 E. fill in the blank 29 fill in the blank 30 fill in the blank 32 fill in the blank 33
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