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Entries for issuing and calling bonds; gain Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9% callable bonds on May 1, 2016 at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions: 2016 May 1. Issued the bonds for cash at their face amount. Nov.1. Paid the interest on the bonds. 2022 Nov.1. Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.)

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Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307
BuyFind

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307

Solutions

Chapter
Section
Chapter 12, Problem 12.9EX
Textbook Problem

Entries for issuing and calling bonds; gain

Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9% callable bonds on May 1, 2016 at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions:

2016

May 1. Issued the bonds for cash at their face amount.

Nov.1. Paid the interest on the bonds.

2022

Nov.1. Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.)

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Chapter 12 Solutions

Financial & Managerial Accounting
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Ch. 12 - Alternative financing plans Owen Co. is...Ch. 12 - Alternative financing plans Browser Co. is...Ch. 12 - Issuing bonds at face amount On January 1, the...Ch. 12 - Issuing bonds at face amount On January 1, the...Ch. 12 - Issuing bonds at a discount On the first day of...Ch. 12 - Issuing bonds at a discount On the first day of...Ch. 12 - Discount amortization Using the bond from Practice...Ch. 12 - Discount amortization Using the bond from Practice...Ch. 12 - Issuing bonds at a premium On the first day of the...Ch. 12 - Issuing bonds at a premium On the first day of the...Ch. 12 - Premium amortization Using the bond from Practice...Ch. 12 - Premium amortization Using the bond from Practice...Ch. 12 - Redemption of bonds payable A 1,500,000 bond Issue...Ch. 12 - Redemption of bonds payable A 500,000 bond issue...Ch. 12 - Journalizing installment notes On the first day of...Ch. 12 - Journalizing installment notes On the first day of...Ch. 12 - Number of times interest charges are earned Berry...Ch. 12 - Number of times interest charges are earned...Ch. 12 - Effect of financing on earnings per share Domanico...Ch. 12 - Evaluate alternative financing plans Based on the...Ch. 12 - Corporate financing The financial statements for...Ch. 12 - Bond price United States Steels 7.375% bonds due...Ch. 12 - Entries for issuing bonds Gabriel Co. produces and...Ch. 12 - Entries for issuing bonds and amortizing discount...Ch. 12 - Entries for issuing bonds and amortizing premium...Ch. 12 - Entries for issuing and calling bonds; loss Adele...Ch. 12 - Entries for issuing and calling bonds; gain Emil...Ch. 12 - Entries for installment note transactions On the...Ch. 12 - Entries for installment note transactions On...Ch. 12 - Entries for installment note transactions On...Ch. 12 - Reporting bonds At the beginning of the current...Ch. 12 - Number of times interest charges are earned The...Ch. 12 - Number of times interest charges are earned...Ch. 12 - Number of times interest charges are earned...Ch. 12 - Present value of amounts due Tommy John is going...Ch. 12 - Present value of an annuity Determine the present...Ch. 12 - Present value of an annuity On January 1, 2016,...Ch. 12 - Present value of an annuity Assume the same data...Ch. 12 - Present value of bonds payable; discount Pinder...Ch. 12 - Present value of bonds payable; premium Moss Co....Ch. 12 - Amortize discount by interest method On the first...Ch. 12 - Amortize premium by interest method Shunda...Ch. 12 - Compute bond proceeds, amortizing premium by...Ch. 12 - Compute bond proceeds, amortizing discount by...Ch. 12 - Effect of financing on earnings per share Three...Ch. 12 - Bond discount, entries for bonds payable...Ch. 12 - Bond premium, entries for bonds payable...Ch. 12 - Entries for bonds payable and installment note...Ch. 12 - Bond discount entries for bonds payable...Ch. 12 - Bond premium, entries for bonds payable...Ch. 12 - Effect of financing on earnings per share Three...Ch. 12 - Bond discount entries for bonds payable...Ch. 12 - Bond premium, entries for bonds payable...Ch. 12 - Entries for bonds payable and installment note...Ch. 12 - Bond discount, entries for bonds payable...Ch. 12 - Bond premium, entries for bonds payable...Ch. 12 - General Electric bond issuance General Electric...Ch. 12 - Ethics and professional conduct in business Solar...Ch. 12 - Present values Alex Kelton recently won the...Ch. 12 - Preferred stock vs. bonds Xentec Inc. has decided...Ch. 12 - Financing business expansion You hold a 25% common...Ch. 12 - Number of times interest charges are earned The...

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