Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2021. The market interest ratefor bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.Required:1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event,select "No Journal Entry Required" in the first account field. Round your intermediate computations and final answers to thenearest whole dollar amount.)No1DateJanuary 01, 2021 CashBonds PayableAnswer is not complete.General JournalDebitCredit63,948Premium on bonds payable×70,000x6,052 ×

Detailed explanation:1. Bond Issued on January 1, 2021 :Record increase in asset, cash, by debit…

Answered: Pretzelmania, Inc., issues 7%, 15-year…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2018, Lane Unlimited issues 15%, 10-year bonds payable with a face value of $180,000. The bonds are issued at 105 and pay interest on June 30 and December 31. Requirements: Journalize the semiannual interest payment and amortization of bond premium on December 31, 2018. Journalize the retirement of the bond at maturity, assuming the last interest payment has already been recorded. (Give the date.)
On July 1, 2020, Center Company issued for $598,964, 10%, 20-year bonds with a face value of $500,000. Interest is paid semiannually on December 31 and June 30. The bonds were issued to yield 8%. Center uses the effective interest method to amortize any bond discount or premium. What is the carrying amount of the bonds on Center's December 31, 2021, balance sheet? Select one: о a. $597,922 O b. $594,802 c. $595,713 O d. $596,839 e. $591,542
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Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $67,000 for $73,507 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid annually on December 31. Required: 1. & 2. Record the bond issue and first interest payment on December 31, 2021.
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