Presented below are selected transactions on the books of Simonson Foundry. July 1, 2019: Bonds payable with a par value of €900,000, which are dated January 1, 2019, are sold at 112.290 plus accrued interest to yield 10%. They bear coupon rate at 12% (payable annually at January 1), and mature January 1, 2029. Dec. 31: Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. Jan.1, 2020: Interest on the bonds is paid. Jan. 2: The bonds of par value of €360,000 are called at 102 and extinguished. Dec. 31: Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Instructions Prepare journal entries for the transactions above.

Presented below are selected transactions on the books of Simonson Foundry. July 1, 2019: Bonds payable with a par value of €900,000, which are dated January 1, 2019, are sold at 112.290 plus accrued interest to yield 10%. They bear coupon rate at 12% (payable annually at January 1), and mature January 1, 2029. Dec. 31: Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. Jan.1, 2020: Interest on the bonds is paid. Jan. 2: The bonds of par value of €360,000 are called at 102 and extinguished. Dec. 31: Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Instructions Prepare journal entries for the transactions above.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 16E

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