At December 31, 2020, Marigold Company has outstanding three long-term debt issues. The first is a $2,210,000 note payable which matures June 30, 2023. The second is a $5,360,000 bond issue which matures September 30, 2024. The third is a $12,640,000 sinking fund debenture with annual sinking fund payments of $2,528,000 in each of the years 2022 through 2026.Prepare the required note disclosure for the long-term debt at December 31, 2020. Long Term Debt 2021 2022 2023 2024 2025
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At December 31, 2020, Marigold Company has outstanding three long-term debt issues. The first is a $2,210,000 note payable which matures June 30, 2023. The second is a $5,360,000 bond issue which matures September 30, 2024. The third is a $12,640,000 sinking fund debenture with annual sinking fund payments of $2,528,000 in each of the years 2022 through 2026.
Prepare the required note disclosure for the long-term debt at December 31, 2020.
Long Term Debt
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- At December 31, 2025, Marin Company has outstanding three long-term debt issues. The first is a $1,960,000 note payable which matures June 30, 2028. The second is a $6,760,000 bond issue which matures September 30, 2029. The third is a $13,530,000 sinking fund debenture with annual sinking fund payments of $2,706,000 in each of the years 2027 through 2031. Prepare the required note disclosure for the long-term debt at December 31, 2025. (Do not leave any answer field blank. Enter O for amounts.) 2026 $ 2027 $ 2028 $ 2029 $ 2030 $ Long-term DebtAt December 31, 2020, Redmond Company has outstanding three long-term debt issues. The first is a $2,000,000 note payable which matures June 30, 2023. The second is a $6,000,000 bond issue which matures September 30, 2024. The third is a $12,500,000 sinking fund debenture with annual sinking fund payments of $2,500,000 in each of the years 2022 through 2026. Instructions Prepare the required note disclosure for the long-term debt at December 31, 2020.(Long-Term Debt Disclosure) At December 31, 2017, Redmond Company has outstanding three long-term debt issues. The first is a $2,000,000 note payable which matures June 30, 2020. The second is a $6,000,000 bond issue which matures September 30, 2021. The third is a $12,500,000 sinking fund debenture with annual sinking fund payments of $2,500,000 in each of the years 2019 through 2023.InstructionsPrepare the required note disclosure for the long-term debt at December 31, 2017.
- At December 31 2025, Crane co has outstanding 3 long term debt issues. The first is a 6,150,000 note payable which matures June 30, 2028. Second is a 20, 250,000 bond issue which matures september 30, 2029. Third is a 57,410,000 sinking fund debenture with annual sinking fund payments of 11,482,000 in each of the years 2027 through 2031. Prepare the note disclosure for the long term debt at December 31, 2025, 2026, 2027, 2028, 2029, and 2030. Also prepare the journal entry for the purchase on 12/31/25.Shoppi Company had the following amounts of long-term debt outstanding on December 31, 2019: 14% term note, due 2020. 30,000 11% term note, due 2022. 1,070,000 8% note, due in 11 equal annual principal payments. 1,100,000 Plus interest beginning Dec. 31,2020 7% guaranteed debentures, due 2021. 1,000,000 Total. 3,200,000 The annual sinking fund requirement on the guaranteed debentures is 40,000 per year. What total amount should be reported as current liabilities on December 31, 2019?On January 1, 2020, Patrick Corporation issued P10 million bonds that will mature in five years. The bond indenture requires Patrick to establish a sinking fund for the retirement of these bonds, with semi-annual deposit every June 30 and December 31, starting June 30, 2020 up to December 31, 2024 in time for the maturity of the bonds.The fund is to be placed in a separate account to be maintained in the company's depository bank. Using an average annual interest rate of 10% (net of tax) expected to be earned on this investment, the company determined that the required semi-annual deposit to be able to accumulate a total of P10 million is P795,045.27.How much is the bond sinking fund balance at December 31, 2020 after making the required semi-annual deposits in the fund? A. P 795,045.27 B. P 834,797.53 C. P1,669,595.00 D. PI,629,842.80
- On the last day of its fiscal year ending December 31, 2020, the Lynbrook Inc. completed four financing arrangements. The funds provided by these initiatives will allow the company to expand its operations. a. Lynbrook issued 7% stated rate bonds with a face amount of $500,000. The bonds mature on December 31, 2030 (10 years). The market rate of interest for similar bond issues was 10%. Interest is paid quarterly beginning on March 31, 2021. b. The company leased three manufacturing facilities. Lease 1 requires 15 annual lease payments of $100,000 beginning on December 31, 2020. Lease 2 requires 10 semi-annual lease payments of $25,000 beginning on June 30, 2021. Lease 3 requires the first of 6 payments of $35,000 to be deferred for 4 years. Accounting standards require the three leases to be recorded as liabilities for the present value of the scheduled payments. Assume that an annual 8% interest rate properly reflects the time value of money for the lease obligations. Required:…Able Company had the following amounts of long-term, debt outstanding at December 31, 2021: 14% term note, due 2022 30,000 11% term note, due 2009 1,070,000 8% note, due in 11 equal annual principal payments, plus interest beginning December 31, 2022 1,100,000 7% guaranteed debentures, due 2010 1,000,000 Total 3,200,000 Able’s annual sinking fund requirement on the guaranteed debentures is P40,000 per year. What amount should Able report as current maturities of long-term debt in its December 31, 2021 balance sheet?On January 2,2018, Ohio Company issued P 10 million of 12% bonds for P 12,734,120 due December 31,2024. Legal and other costs of P 50,000 were incurred in connection with the issue. Interest on the bonds is payable annually each December 31. Using a financial calculator, the effective interest rate on the these bonds was computed to be 8%, after considering the bond issued cost of P 50,000. The bonds are callable at 110, and on December 31,2021, after paying the periodic interest, Ohio called P 4,000,000 face amount of the bonds and retired them. REQUIRED: Determine the following: (a) Amortization of the premium for the year ended December 31,2018 (b) Carrying value of the bonds on December 31,2021 (c) Gain or loss on retirement of the bonds on December 31, 2021 (d) Interest expense for the year ended December 31, 2022 (e) Carrying value of the bonds on December 31,2022
- On January 1, 2020 Patrice Company issued P10 million bonds that will mature in five years. The bond indenture requires Patrick to establish a sinking fund for the retirement of these bonds, with annual deposit every January 1, starting January 1, 2020 up to January 1, 2020 in time for the maturity of the bonds.The fund is to be placed in a separate account to be maintained in the company's depository bank. Using an average annual interest rate of 10% (net of tax) expected to be earned on this investment, the company determined that the required annual deposit to be able to accumulate a total of P10 million is P1,489,070.20. How much is the bond sinking fund balance at December 31, 2020 after making therequired year-end adjustment in the fund? A. P1,489,070.20 B. P1,637,977.22 C. P1,629,842.80 D. P3,127,047.42Presented below are two different situations related to Mckee Corporation’s debt obligations. Mckee’s next financial reporting date is December 31, 2020. The financial statements are authorized for issuance on March 1, 2021. 1. Mckee has a long-term obligation of $400,000, which is maturing over 4 years in the amount of $100,000 per year. The obligation is dated November 1, 2020, and the first maturity date is November 1, 2021. 2. Mckee has a short-term obligation due February 15, 2021. Its lender agrees to extend the maturity date of this loan to February 15, 2023. The agreement for extension is signed on January 15, 2021. Instructions Indicate how each of these debt obligations is reported on Mckee’s statement of financial position on December 31, 2020.On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for $103,604.79 minus debt issuance costs of $3,000. The bonds carry a stated rate of interest of 13% payable annually on December 31 and were issued to yield 12%. The company uses the effective interest method of amortization to amortize any discounts or premiums and the straight-line method to amortize the debt issuance costs. Required: Prepare the journal entries to record the issuance of the bonds, all the interest payments, premium amortizations, debt issuance cost amortizations, and the repayment of the bonds. In addition, prepare a bond interest expense and premium amortization schedule for the bonds. CHART OF ACCOUNTS Gates CorporationGeneral Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 195 Deferred Debt Issuance Costs 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231…
