Sarasota Corp. retires its $928000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $962750. The entry to record the redemption will include a debit of $34750 to Premium on Bonds Payable. credit of $11650 to Gain on Bond Redemption. credit of $34750 to Loss on Bond Redemption. debit of $46400 to Premium on Bonds Payable.

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.

Tamarisk Ltd. issued a $1,076,000, 10-year bond dated January 1, 2023. The bond was sold at 98.8% interest was payable on the bond on January 1 and July 1 each year. The company's year-end was December 31, and Tamarisk followed ASPE, and chose to use the straight-line amortization method. Prepare the journal entries for the given dates. (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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date || | | Account Titles and Explanation Debit Credit ||

Novak Corp. redeemed $148,000 face value, 12% bonds on April 30, 2022, at 102. The carrying value of the bonds at the redemption date was $134,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. Prepare the appropriate journal entry for the redemption of the bonds.

Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is 6% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2. Prepare an effective interest amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments.

A7

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.

Hasley Company issued $800,000, 11%, 10-year bonds on December 31, 2018, for $730,000. Interest is payable annually on December 31.The Company uses the straight-line method to amortize bond premium or discount. 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.) Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Ellis Company issues 8.5 %, five - year bonds dated January 1, 2021, with a $540,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $550, 969. The annual market rate is 8.0% on the issue date. Required: Compute the total bond interest expense over the bonds' life. Prepare an effective interest amortization table for the bonds' life. Prepare the journal entries to record the first two interest payments.

Patricia Johnson Company issued $420,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Johnson 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) a. b. с The issuance of the bonds. The payment of interest and the related amortization on July 1, 2025. The accrual of interest and the related amortization on December 31, 2025. Date Account Titles and Explanation Debit 1000 Credit