FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![ALL ENTRIES ARE FOR BLUESTAR AIRLINES
On May 1st, 2022, BlueStar Airliines issues $500,000, 4% bonds at 97. The bonds pay interest
annually.
A) Prepare the journal entry to record the issuance of the bond?
Acct Description
[Select]
[Select]
[Select]
[Select]
No entry
DR
[Select]
[Select]
CR
and credit [Select]
>
B) On December 31st, 2022 do a JE to record the adjusting entry accruing the interest for those
pertinent months?
You are going to debit [Select]
the amount of [Select]
for](https://content.bartleby.com/qna-images/question/74aea9e5-5aa1-4595-88a4-481d97195a60/33f3abbb-2a47-4567-b43a-3fc214c69225/o79vfv_processed.jpeg)
Transcribed Image Text:ALL ENTRIES ARE FOR BLUESTAR AIRLINES
On May 1st, 2022, BlueStar Airliines issues $500,000, 4% bonds at 97. The bonds pay interest
annually.
A) Prepare the journal entry to record the issuance of the bond?
Acct Description
[Select]
[Select]
[Select]
[Select]
No entry
DR
[Select]
[Select]
CR
and credit [Select]
>
B) On December 31st, 2022 do a JE to record the adjusting entry accruing the interest for those
pertinent months?
You are going to debit [Select]
the amount of [Select]
for
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- At December 31, 2022, the trading debt securities for Sheridan, Inc. are as follows. Security A (a) B C Cost $17,800 12,000 Dec. 31 22,900 $52,700 Fair Value $16,300 13,600 19,400 $49,300 Prepare the adjusting entry at December 31, 2022, to report the securities at fair value. (List all debit entries before credit er Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No- for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Creditarrow_forwardOriole Company issued $510,000 of bonds on January 1, 2020. (a) Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later I Debit 510000 Credit 510000 Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answerarrow_forwarddevers corporation issued $400 000 6% bonds on may 1 2020. the bonds were dated january 1 2020 and mature january 1 2023 with interest payable july 1 and january 1. The bonds were issued at face vale plus accrued interest. prepare deverss journal entries for (a) the may 1 issuance (b) the july 1 interest payment and (c) dec 31 adjusting entryarrow_forward
- im.2arrow_forwardAn accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?arrow_forwardCarla Vista Co. issued $475,000, 15-year, 5% bonds at 96. Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 Cash Bonds Payable Premium on Bonds Payable Textbook and Media Debit Credit 475000arrow_forward
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