FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Entries for Bonds Payable, induding bond redemption
The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:
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- How do I journalize the bonds?arrow_forwardEntries for Issuing and Calling Bonds; Gain Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $771,000 of 25-year, 13% callable bonds on May 1, 20Y1, 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: 20Y1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. 20Y5 Nov. 1 Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.) Question Content Area Issued the bonds for cash at their face amount. If an amount box does not require an entry, leave it blank. 20Y1, May 1 - Select - - Select - - Select - - Select - Question Content Area Paid the interest on the bonds. If an amount box does not require an entry, leave it blank. 20Y1, Nov. 1 - Select -…arrow_forwardRecording in the Accounting System On January 1, 2014, Jack Company issues the $4,110,000, 8%, 10-year bonds described above for cash of $3,373,263. Journalize the issuance of the Jack Company bonds.arrow_forward
- Prepare Natura Company's journal entries to record the following transactions involving its short-term investments in held-to-maturity debt securities, all of which occurred during the current year. a. On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. b. On September 16, received a check from Remed in payment of the principal and 90 days' interest on the debt securities purchased in transaction a. Note: Use 360 days in a year. Do not round your intermediate calculations. View transaction list Journal entry worksheet < 1 2 On June 15, paid $180,000 cash to purchase Remed's 90-day short-term debt securities ($180,000 principal), dated June 15, that pay 7% interest. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journalarrow_forwardBonds Payable Journal Entries; Issued at Par Plus Accrued InterestAskew, Inc., which closes its books on December 31, is authorized to issue $700,000 of nine percent, 15-year bonds dated May 1, with interest payments on November 1 and May 1.RequiredPrepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on October 1:a. The bond issuance.b. Payment of the first semiannual period's interest on November 1.c. Accrual of bond interest expense at December 31.d. Payment of the semiannual interest on May 1 of the following year.e. Retirement of $500,000 of the bonds at 101 on May 1, Year 2 (immediately after the interest payment on that date). Round to the nearest dollar. Use 360 days for calculations. General Journal Date Description Debit Credit a. Oct.1 AnswerCashBonds PayableBond Interest PayableBond Interest ExpenseLoss on Bond Retirement Answer 0 Bonds Payable 0 700000 AnswerCashBonds…arrow_forwardBonds Payable Journal Entries; Issued at Par Plus Accrued Interest Richard, Inc., which closes its books on December 31, is authorized to issue $600,000 of six percent, 20‑year bonds dated March 1, with interest payments on September 1 and March 1.RequiredPrepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on July 1.a. The bond issuance.b. Payment of the semiannual interest on September 1.c. Accrual of bond interest expense at December 31.d. Payment of the semiannual interest on March 1 of the following year.e. Retirement of $200,000 of the bonds at 104 on March 1, Year 3 (immediately after the interest payment on that date). General Journal Date Description Debit Credit a. Jul.1 Bonds Payable Issuance of bonds plus accrued interest. b. Sept.1 Bond Interest Payable To record semiannual interest payment. c.…arrow_forward
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