The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Required: 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. 3. Determine the carrying amount of the bonds as of December 31, 20Y2.
Q: On July 8, Jones Inc. issued an $66,900, 9%, 120-day note payable to Miller Company. Assume that the…
A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…
Q: The adiusted trial balance data given below is from Cameron White Company's worksheet for the year…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: Canon Company finances some of its current operations by assigning accounts receivable on a…
A:
Q: The following information was taken from the books of Towel Talk for January and February 2021: List…
A: The answer is given below:
Q: A business issued a 60-day, 7% note for $43,000 to a creditor on account. Illustrate the effects on…
A: Accounting Equation:- It is an equation where total assets are equal to the sum of total liabilities…
Q: On October 1, 2021, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were…
A: Bonds are issued at a face value of $864,000.
Q: On January 1, the first day of its fiscal year, Ebert Company issued $35,000,000 of 10-year, 6%…
A: A.1Journalize sale of bonds.
Q: Prepare Natura Co.’s journal entries to record the following transactions involving its short-term…
A: The short term investments are the current assets which can be converted into cash within one year.
Q: On January 5, Daisy Co., which follows a calendar year accounting, issued $1,000,000 of notes…
A: Long term debt = Total notes payable - current portion = $1000000 - 250000 = $750,000
Q: Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen…
A: Given that Bonds issued = $18,00,000 Interest = 4% Tenure = 20 years
Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $910 for $94,800. The bonds…
A: Bonds payable (at par) = 100 bonds * $910= $ 91000 Bond issued value= $ 94800 Premium on bond issue=…
Q: Below are selected transactions for Ink Corporation. Ink Corporation began operations on January 1,…
A: Bonds Investment - It is an investment on which interest at a fixed rate is received for a specified…
Q: Journalize the entry to record the issuance of the bonds.
A: Journal entry: It is a systematic record of a financial transaction of an organization recorded in…
Q: On June 30, Year 3, Rundle Company's total current assets were $497,500 and its total current…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on…
A: Note is a form of debt issued or taken by the company. Interest has to be paid or received on the…
Q: Hoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on…
A: Interest expense = Face value of bonds x rate of interest x no. of month/12 = $32,700,000 x 6% x…
Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: On Jan. 1, Year 1, Nadal Inc. issued 100 bonds with a face value of $1,000 each for $103,500. The…
A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…
Q: Rushton Corp., a wholesaler of music equipment, issued $29,700,000 of 20-year, 6% callable bonds on…
A: Journal Entry: The process of recording business transactions in the books of accounts for the first…
Q: Sport Enterprises have individual accounts for their debtors in a debtors subsidiary ledger and have…
A: Debtor Control Account - It is also known as sales ledger control account that simply tracks any…
Q: On July 8, Jones Inc. issued an $85,000, 8%, 120-day note payable to Miller Company. Assume that the…
A: From July 8 to July 31 = 23 days Interest expense has been accrued for 23 days for the note payable.…
Q: On the first day of the fiscal year, a company issues an $2,250,000, 9%, five-year bond that pays…
A: Premium on Bonds Payable = Issue value of bonds - face value of bonds = $2,379,570 - $2,250,000 =…
Q: Connie's Bistro, Inc., reported the following information about its long-term debt in the notes to a…
A: The current portion of the long-term debt shall refer to the current liabilities that are to be…
Q: Suppose Alladin Travel, Inc., holds a note receivable as an investment. At the endof June, $100 of…
A: Given information is: Suppose Alladin Travel, Inc., holds a note receivable as an investment. At…
Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…
A: 1.Journalize the entries to record the transactions.
Q: On the first day of its fiscal year, Ebert Company issued $12,500,000 of 10-year, 7% bonds to…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: notes should be classified on the balance sheet of Lance Company
A: a) Current Liabilities: These are the short term liabilities which are due within a period of one…
Q: Phoebe Corporation signed a six-month note payable on October 23, 2018. What accountsrelating to the…
A: When the notes payable is signed in the middle of the financial year, and interest is included, the…
Q: business issued a 45-day, 4% note for $240,000 to a creditor on account. Journalize the entries to…
A: A journal entry is prepared by the company to record the non-economic & economic transactions of…
Q: Below are the transactions related to notes receivable activity for Barton Corporation.…
A: Generally days for interest calculation in accounting taken 360 days in a year. Note receivable…
Q: Complete the necessary journal entry for June 30 by selecting the account names from the drop-down…
A: Working: Amortization of premium on June 30 = (Total premium / Total period of bonds) x 6/12 months…
Q: sued a 30-day, 7% note for $67,200 to a creditor on account. The company uses a 360-day year for…
A: Solution: Issuance of note to a creditor on accounts means note is issued to a creditor for their…
Q: first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays semiannual…
A: Solution: When the face value of bond is higher than issue price of bonds then that represents that…
Q: On January 1, the first day of the fiscal year, Shiller Company borrowed $86,000 by giving a…
A: Notes payable is a form of amount borrowed or taken out from some other person. This is a liability…
Q: On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays…
A: Journal entry A journal entry is used to record a business transaction within the accounting…
Q: Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on…
A: Bonds are a form of loan or debt that is being issued by the business organisation, on which regular…
Q: On June 30, Year 3, Perez Company's total current assets were $495,500 and its total current…
A: 1. WORKING CAPITAL : = CURRENT ASSETS - CURRENT LIABILITIES 2. CURRENT RATIO : = CURRENT ASSETS /…
Q: On the first day of its fiscal year, Chin Company issued $23,100,000 of five-year, 9% bonds to…
A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
Q: Spring Designs & Decorators issued a 180-day, 6% note for $76,800, dated April 13 to Jaffe…
A: A. Following are the calculation of due date of the note:
Q: The adjusted trial balance data given below is from Cameron White Company's worksheet for the year…
A: Balance sheet: The balance sheet shows the financial position of the company by recording all the…
Q: On the first day of the fiscal year, a company issues a $1,550,000, 12%, five-year bond that pays…
A: Discount on Bonds Payable = Face value of the bonds - Issue value of the bonds = $1,550,000 -…
Q: A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the entries to…
A: a. Prepare journal entry to record the issuance of the note.
Q: Sport Enterprises have individual accounts for their debtors in a debtors subsidiary ledger and have…
A: Balanced Debtor's control account. Reconciliation of Debtors list with the debtor's control account.
Q: abardeen corporation borrowed 58,000 from the bank on october 1, year 1. The note had a 4 percent…
A: Note payable: Note payable refers to the liability of the business, as business borrow money against…
Q: Hoover Corp., a wholesaler of music equipment, issued $11,200,000 of 20-year, 9% callable bonds on…
A: Journal entries are prepared to record the financial and non-financial transactions of the business…
Q: A business issued a 45-day, 4% note for $260,000 to a creditor on account. Journalize the entries to…
A: Notes payable: A note payable is a liability account. In this borroer promised to lender/issuer to…
Q: Hyorid Soutions have many debtors and therefore keep records of transactions with Indvidual deotors…
A: Accounts Receivable: It the amount of money due to a firm for goods or services delivered and are…
Q: Prepare Natura Co.’s journal entries to record the following transactions involving its short-term…
A:
Q: A business issued a 30-day, 7% note for $33,600 to a creditor on account. The company uses a 360-day…
A: Note Payable are a form of liability for the business, on which regular interest payments needs to…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. 3. Determine the carrying amount of the bonds as of December 31, 20Y2. (Refer to image, thank you!)On the first day of the fiscal year, a company issues a $950,000, 10%, five-year bond that pays semiannual interest of $47,500 ($950,000 × 10% × 1/2), receiving cash of $884,174. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSGeneral Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312…General Journal for the following: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y2 June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y3 June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization…
- On the first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays semiannual interest of $47,500 ($950,000 × 10% × 1/2), receiving cash of $884,174. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY…Transactions: Apr. 30 Issued a $198,000, 30-day, 6% note dated April 30 to Misner Co. on account. May 30 Paid Misner Co. the amount owed on the note dated April 30. Required: Journalize the above transaction, assuming a 360-day year is used for interest calculations. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts Payable-Batson Company 212 Accounts Payable-Jergens Inc. 213 Accounts Payable-Misner Co. 214 Accounts Payable-Scotland Company 221 Notes Payable-Batson Company 222 Notes Payable-Jergens Inc. 223 Notes Payable-Misner Co. 224 Notes Payable-Scotland…A business issued a 30-day, 7% note for $67,200 to a creditor on account. The company uses a 360-day year for interest calculations. Required: Journalize the entries to record (a) the issuance of the note on April 30 and (b) the payment of the note at maturity, including interest. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income…
- On the first day of the current fiscal year, $200,000 of 5-year, 10% bonds, with interest payable annually, were sold for $192,462. What account would be listed in the description column (1) as the debit for the $192,462 in the journal entry to record this transaction? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) 192,462 (2) 7,538 (3) 200,000 Bonds Payable Cash Discount on Bonds Payable Premium on Bonds PayableHoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Y2 Mar. Sept. 20Y4 Sept. 1 1 Issued the bonds for cash at their face amount. Paid the interest on the bonds. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)Transactions: Apr. 30 Issued a $162,000, 30-day, 6% note dated April 30 to Misner Co. on account. May 30 Paid Misner Co. the amount owed on the note dated April 30. Required: Journalize the above transaction, assuming a 360-day year is used for interest calculations. Refer to the Chart of Accounts for exact wording of account titles.
- Prefix Supply Company received a 60-day, 4% note for $46,000 dated July 12 from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume a 360-day year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Prefix Supply Company General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY…business issued a 45-day, 4% note for $240,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity, including interest. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Merchandise Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax…The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: 20Y1 July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 20Y1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. 20Y2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $390,852 is combined with the semiannual interest payment. 20Y3 June 30. Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded. (Record the…