Recording the Refunding of Long-Term Debt On January 1, 2020, Rocket Corporation issued $100,000 of 6%, 20-year bonds at 98. The interest is payable each December 31. Rocket uses straight-line amortization. The company’s accounting period ends December 31.  On January 1, 2029, Rocket issued $100,000, 5% 20-year, refunding bonds at par. On this date, the old 6% bonds could be purchased in the open market at 102. Rocket immediately purchased all of the 6% bonds.  Required  a. Provide the entry for issuance of the 6% bonds on January 1, 2020.  b. Provide the entry for issuance of the 5% bonds on January 1, 2029.  c. Provide the entry to record the extinguishment of the old bonds on January 1, 2029.   Note: List multiple debits or credits (when applicable) in alphabetical order.   Date Account Name Dr. Cr. a. Jan. 1, 2020 Answer Answer Answer     Answer Answer Answer     Answer Answer Answer b. Jan. 1, 2029 Answer Answer Answer     Answer Answer Answer c. Jan. 1, 2029 Answer Answer Answer     Answer Answer Answer     Answer Answer Answer     Answer Answer Answer

On July 1, 2019, Rix Corporation had $10,000,000 of 9% bonds outstanding. The maturity date is June 30, 2024. Interest is paid semiannually every June 30 and December 31. All the bonds were redeemed on July 1, 2019, at 98. At the time of the bond redemption, there was unamortized bond premium of $60,000 and unamortized debt issuance costs of $100,000. What is the amount of the gain on the bond redemption?

Shaq Corporation issued $10,000 of 20-year bonds on January 1, 2024. The bonds pay interest semiannually. This is a partial bond amortization schedule for the bonds. Payment Cash Effectiveinterest Increase in balance Outstandingbalance                       9,080   1   400     409     9     9,089   2   400     409     9     9,098   3   400     409     9     9,107   4   400     410     10     9,117    What is the effective annual rate of interest on the bonds?

Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2021. The market interest rate for 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 the nearest whole dollar amount.) No 1 Date January 01, 2021 Cash Bonds Payable Answer is not complete. General Journal Debit Credit 63,948 Premium on bonds payable × 70,000x 6,052 ×

Subject:: accounting

On April 1, 2021, Marigold Corporation issued $352.000, 5-year bonds. On this date, Shoreline Corporation puurchased the bonds from Marigold to earn interest. Interest is received semi-annually on April 1 and October 1 and Shoreline's year end is March 31 Below is a partial amortization schedule for the first three interest periods of the bond issue Semi-Annual Interest Received Interest Interest Period Revenue Amortization Bond Amortized Cost April 1. 2021 $368.231 October 1, 2021 $7.040 $5.523 $1.517 366.714 April 1.2022 7.040 5.501 1.539 365,175 October 1, 2022 7.040 5,478 1,562 363,613 Were the bonds purchased at a discount or at a premium? Bonds purchased at a What is the face value of the bonds? Face value of the bonds s eTextbook and Media What will the bonds' amortized cost be at the maturity date? Bonds' amortized cost at the maturity date eTextbook and Media /1 E What is the bonds' contractual interest rate? The market interest rate? (Round answers to 2 decimal places, eg…

Super Splash issues $910,000, 7% bonds on January 1, 2021, that mature in 10 years. The market interest rate for bonds of similar risk and maturity is 6%, and the bonds issue for $977,693. Interest is paid semiannually on June 30 and December 31.   2. & 3. Record the issuance of the bonds on January 1, the interest payments on June 30, 2021, and December 31, 2021. (If no journal entry is required for a particular transaction, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)

On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash interest annually on December 31. The company retired 30% of the bonds on June 1, 2020, when the bonds were selling at 90 plus accrued interest. Assume the straight-line interest method is used to amortize the bond discount. What is the gain recognized on the redemption of the bonds?       Select one: a. $5,208 gain b. $8,400 gain c. $5,040 gain d. $5,180 gain