On July 1, 2020, Martinez Corporation purchased at par 6% bonds having a maturity value of $350,000. The bonds are dated July 1, 2020, and mature July 1, 2025, with interest payable on July 1 of each year. The bonds are classified in the held-to-maturity category, and the company does not use reversing entries. (a)   Prepare the journal entry at the date of the bond purchase. (b)   Prepare the journal entry to record the interest earned and interest received for 2020. (c)   Prepare the journal entries to record the interest earned and interest received for 2021.

Flint Corporation sold $3,050,000, 6%, 5-year bonds on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on January 1. Flint Corporation uses the straight-line method to amortize bond premium or discount. (a) Your Answer Correct Answer ✓ Your answer is correct. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2025, assuming that the bonds sold at 103. (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 Premium on Bonds Payable Bonds Payable Dec. 31 Interest Expense. Debit 3141500 164700 Credit 91 305C

BC Corporation sold $55,000,000, 8%, 10-year bonds on January 1, 2022. The bonds apply interest on July 1 and January 1. BC uses the staight-line method to amortize bond premium or discount. Assume no interestaccrued on June 30.Instructions1. Prepare all the necessary journal entries to record the issuance of the bonds and bond interesthappens for 2022, assuming that the bonds sold at 105.2. Prepare journal entries as in part (1) assuming that the bond sold at 98.3. Show statement of financial position presentation for each bond issued at December 31, 2022.

On January 1, 2020, Coronado Company purchased 13% bonds, having a maturity value of $279,000 for $299,622.84. The bonds provide the bondholders with a 11% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Coronado 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   $297,600   2023   $289,600 2021   $288,500   2024   $279,000 2022   $287,600           (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…

Bramble Company issued $504,000 of 11%, 20-year bonds on January 1, 2020, at 101. Interest is payable semiannually on July 1 and January 1. Bramble Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020. Date Account Titles and Explanation Debit Credit 1/1/20 7/1/20 12/31/20

On January 1, 2020, Wildhorse Company purchased 6% bonds, having a maturity value of $550,000 for $475,253. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2027, with interest paid on June 30 and December 31 of each year. Wildhorse 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 $476,000 2023 2021 $471,000 2024 $466,000 2022 (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, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for…

On January 1, 2025, Crane Company purchased 6% bonds, having a maturity value of $530,000 for $457,971. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2025, and mature January 1, 2035, with interest receivable June 30 and December 31 of each year. Crane Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2025 2026 2027 (a) (b) (c) No. (a) $459,297 454,297 2029 (b) 449,297 (Round answers to O decimal places, e.g. 2,525. Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) Date 2028 Prepare the journal entry at the date of the bond purchase. Prepare the journal entries to record the interest received and recognition…

Crane Company issued $516,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Crane Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (if no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020. Date Account Titles and Explanation Debit Credit 1/1/20 Cash Bonds Payable 516,000 Premium on Bonds Payable 7/1/20 Interest Expense Premium on Bonds Payable Cash 12/31/20 Interest Expense Premium on Bonds Payable Interest Payable

Stinson Corporation issued $520,000 of 5​%, 10​-year bonds payable on March​ 31, 2019. The market interest rate at the date of issuance was 9​%, and the bonds pay interest semiannually. Stinson ​Corporation's year-end is March 31. Review the following amortization table for Stinson​'s ​bonds: Using the amortization table for Stinson​'s ​bonds, answer the questions​below:   Semiannual      Interest       Interest    Discount        Discount  Bond          Interest Date   Payment      Expense   Amortization  Balance  Carying Amt Mar 31, 2019                                                          $ 135,283    384,717 Sep 30, 2019 $     13,000  $  17,312  $       4,312       130,971    389,029 Mar 31, 2020        13,000      17,506           4,506        126,465  393,535 Sep 30, 2020        13, 000    17,709           4,709       121,756     398,244 1 How much cash did Stinson Corporation borrow on March​ 31, 2019​?How much cash will the company pay back at maturity on March​ 31,…

On January 1, 2020, Cheyenne Company purchased 5% bonds, having a maturity value of $570,000 for $488,989. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2020, and mature January 1, 2027, with interest paid on June 30 and December 31 of each year. Cheyenne 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   $490,000   2023   $510,000 2021   $485,000   2024   $530,000 2022   $480,000         (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…