f each year. Aumont Company allocates interest and unamortized discount or premium on the effective-interest basis. c) Prepare the journal entry to record the interes

On January 1, 2020, Sandhill Corporation issued $460,000 of 7% bonds, due in 10 years. The bonds were issued for $428,743, and pay interest each July 1 and January 1. Sandhill uses the effective-interest method.Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%

Laudie Company issued $400,000 of 5%, 10-year bonds on January 1, 2020, at 94. Interest is payable annually on January 1, 2021. Instructions:  Prepare the journal entries to record the following events. a. The issuance of the bonds. b. The accrual of interest and amortization of the discount on December 31, 2020. c. The payment of interest on January 1, 2021.  d. Calculate the carrying value of the bond on 12/31/20. #2 Gridley Company issued $800,000, 11%, 10-year bonds on December 31, 2019, at 104. Interest is payable annually on December 31. Gridley Company uses the straight-line method to amortize bond premium or discount. Instructions: Prepare the journal entries to record the following. a. The issuance of the bonds. b. The payment of interest December 31, 2020. (Extra credit for amortization of the premium entry) c.  The redemption of the bond at maturity

On January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $5,000,000 .InstructionsPrepare the following entries: Round to the nearest dollar when necessary.a. record the issuance of the bonds on 1/1/20, assuming the bonds were issued at 102b. prepare the entry for the interest accrual and amortization on 12/31/20.c. calculate the balance of the unamortized premium and the carrying value of the bond at 12/31/20. Show your calculations.d. record the issuance of the bonds on 1/1/20, assuming the bonds were issued at 100e. prepare the entry for the redemption of the bonds at maturity

On January 1, 2022, Lenore Corp. purchased $400,000 of 6% bonds for $427,750, which they are classifying as available for sale. Interest is payable annually on December 31.  The bonds mature on December 31, 2024.  Premium or discount amortization is recorded when interest is received by the straight-line method.  The market value of the bonds at December 31, 2022 is 424,000.               Required:   Prepare the entry to record the acquisition on January 1, 2022. Prepare the entry to record the December 31, 2022 interest payment. Prepare the entry to adjust the investment to fair value at December 31, 2022. The bonds are sold on January 1, 2023 for 430,000. Prepare any entries necessary to record the sale.

On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $ 324,415.24. The bonds provide the bondholders with a  9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Sage Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020   $ 322,200   2023   $ 310,900 2021   $ 309,800   2024   $ 301,000 2022   $ 308,900           (a)   Prepare the journal entry at the date of the bond purchase. (b)   Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. (c)   Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is…

On January 1, 2019, Hackman Corporation issued $1,400,000 face value 12% bonds dated January 1, 2019, for $1,423,060. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2023. Hackman uses the straight-line amortization method. Required: Record the issuance of the bonds and the first two interest payments.

On October 1, 2020 Waterway Industries issued 6%, 10-year bonds with a face value of $8150000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.Bond interest expense reported on the December 31, 2020 income statement of Waterway Industries would be

Hiu Wang Company sold $55,000,000, 8%, 10-year bonds on January 1, 2020. The bonds apply interest on July 1 and January 1. HWC uses the straight-line method to amortize bond premium or discount. Assume no interest accrued on June 30.   Prepare all the necessary journal entries to record the issuance of the bonds and bond interest happens for 2020, assuming that the bonds sold at 105. Prepare journal entries as in part (1) assuming that the bond sold at 98. Show statement of financial position presentation for each bond issued at December 31, 2020.

On January 1, 2020, Stellar Company purchased 12% bonds, having a maturity value of $325,000 for $349,639.81. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Stellar Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $347,400 2023 $334,900 2021 $333,800 2024 $325,000 2022 $332,800 (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021.