FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest of $20,000 ($500,000 x 8% x 1/2), receiving cash of $530,000. Journalize the entry for the issuance of the bonds. If an amount box does not require an entry, leave it blank. Casharrow_forwardOn the first day of the fiscal year, a company issues a $883,000, 10%, 10-year bond that pays semiannual interest of $44,150 ($883,000 x 10% x 1/2), receiving cash of $927,200. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select -arrow_forwardOn January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 × 6% × ½ year), receiving cash of $5,000,000. a. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. c. Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.arrow_forward
- On the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays semiannual interest of $33,000 ($1,100,000 × 6% × ½), receiving cash of $1,178,944. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Casharrow_forwardOn the first day of the fiscal year, a company issues a $3,400,000, 7%, 10-year bond that pays semiannual interest of $119,000 ($3,400,000 x 7% x 12), receiving cash of $2,764,428. Using straight-line amortization, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. DOarrow_forwardOn January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $200,000, 5%, 10-year bond that pays semiannual interest of $5,000 ($200,000 × 5% × ½ year), receiving cash of $200,000. (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. Cash fill in the blank 135942f1f00b052_2 fill in the blank 135942f1f00b052_3 Bonds Payable fill in the blank 135942f1f00b052_5 fill in the blank 135942f1f00b052_6 (b) Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. Interest Expense fill in the blank 838d07010fa3fc7_2 fill in the blank 838d07010fa3fc7_3 Cash fill in the blank 838d07010fa3fc7_5 fill in the blank 838d07010fa3fc7_6 (c) Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.…arrow_forward
- On the first day of the fiscal year, a company issues an $565,000, 9%, 5-year bond that pays semiannual interest of $25,425 ($565,000 x 9% x 1/2), receiving cash of $531,100. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable Casharrow_forwardOn August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Bramble’s year-end is December 31. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 1 enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount enter an account title to record the issuance of the bonds on August 1 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 enter an…arrow_forwardOn the first day of the fiscal year, a company issues a $674,000, 7%, 10-year bond that pays semiannual interest of $23,590 ($674,000 x 7% x 1/2), receiving cash of $707,700. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank.arrow_forward
- On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays semiannual interest of $58,200 ($970,000 x 12% x 1/2), receiving cash of $1,018,500. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select -arrow_forwardSubject : Accountingarrow_forwardmin.9arrow_forward
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