MSI Inc -(ALL ENTRIES FOR MSI ONLY)KEY for Accounting ComponentAssets = ALiabilities = LStockholders' Equity = SEAccountingComponentOn July 1st 2019, MSI Inc issued $800,000, 3%, 10 year bonds at 103. The bonds pay interest annually. Prepare theDebit (DR)Credit (CR)Account3journal entry to record the issuance of the bonds. What is the total cost of borrowing?TOTAL COST OF BORROWING =On January 1st 2020, MSI Inc issues $500,000 4%, 6 year bonds at face value. Prepare the entry to record theissuance of the bonds.On December 31st 2020, MSI Inc does an adjusting entry to record the accrual of interest for #4 above.On January 1st, 2020, MSI pays the accrued bond interest and calls the bonds at 101 (refer to #4 above). Record thepayment of interest and redemption of the bonds.

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

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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 $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
Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount 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 discount
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
Requirement. Journalize the transactions of Lamire Communications Inc. (Record debits first, then credits. Exclude explanations from any journal entries.) January 1, 2018: Issued $8,000,000 of 9%, 10-year bonds payable at 97. Interest payment dates are July 1 and January 1. Journal Entry Date 2018 Jan 1 Date January 1, 2028: Paid the bonds at maturity (ignore the interest payment at maturity). Journal Entry 2028 Jan 1 Accounts 1. Accounts Requirements Debit Debit Credit Credit Journalize the transactions of Lamire Communications, Inc. Ⓒ - X
The balance sheet for Pharoah Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable Less: Discount on bonds payable $2,000,000 160,000 Pharoah decides to redeem these bonds at 105 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2022. (Credit acco entered. Do not indent manually.) Date Account Titles and Explanation July 1 H $1,840,000 titles are automatically indented when au Debit Credit
Wildhorse Corporation issued 4,100, 6%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. 1.Prepare the journal entry on January 1, 2021, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2021
Please help find issue price of bonds Requirements- Using PV function in excel calculate issue price of bonds Prepare effective interest amortization table for bonds through the first three interest payments Record ranking corporations issuance of bonds on March 31 2018. And payment of first semiannual interest amount and amortization of bond and discount on September 30,209. Explanations are not required.
At December 31, 2020, Stellar Corporation has the following account balances: Bonds payable, due January 1, 2029 Discount on bonds payable Interest payable $1,900,000 102,000 # 92,000 Show how the above accounts should be presented on the December 31, 2020, balance sheet, including the proper classifications. (Enter account name only and do not provide descriptive information.) Stellar Corporation Balance Sheet (Partial) $ tA
The following section is taken from Oriole Company's balance sheet at december 31, 2021. Current liabilities, Interest payable $87, 750 Long liabilities, Bonds payable, 5% due january 1, 2024 1,755,000. Bond interest ispayable annually on January 1. The bonds are callable on any interest date. Prepare the entry to record the accrual of interest on December 31, 2022
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Required information Skip to question [The following information applies to the questions displayed below.] Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. Prepare the journal entries to record the first two interest payments. Record the interest payment and amortization on June 30. Note: Enter debits before credits. Date General Journal Debit Credit June 30 Record the interest payment and amortization on December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31
At December 31, 2025, Cullumber Corporation has the following account balances: Bonds payable, due January 1, 2034 Discount on bonds payable Interest payable $1,400,000 76,000 71,000 Show how the above accounts should be presented on the December 31, 2025, balance sheet, including the proper classific CULLUMBER CORPORATION Balance Sheet (Partial) LA

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