X Corporation borrowed money by issuing $1,000,000 of bonds at 102on January 1, 2022. The bonds pay interest on January 1 and July 1. Thestated rate of interest is 5% and the bonds mature in 10 years. Anydiscount or premium is amortized using the straight-line method.Required:Prepare journal entries on the following dates:1. January 1, 2022.2. July 1, 2022.3. December 31, 2022, the fiscal year end.4. January 1, 2023.5. January 1, 2032.Omit explanations.DateAccountDebitCredit

DateAccountDebitCreditJanuary 1, 2022Cash ($1,000,000 * 102%)$ 1,020,000 Bonds Payable $…

Answered: X Corporation borrowed money by issuing…

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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1. Santos SA issues $300,000 in bonds dated January 1, 2022, due in five years with 9 percent interest payable annually on January 1. At the time of issue, the market rate for such bonds is 9percent.a) Illustrate the bond in line as principal invested and interest rate.b) Check the value of bound is it sold at par value.c) Register accounting transactions on journal entries.
The balance sheet for Ivanhoe Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable $4,500,000 Less: Discount on bonds payable 315,000 $4,185,000 Ivanhoe decides to redeem these bonds at 101 after paying annual interest.Prepare the journal entry to record the redemption on July 1, 2022.
A Company issued $480,000 of 7% bonds on January 1. Interest is payable semiannually on July 1 and January 1. The bonds are issued at face value.. The journal entry on June 30 should include : Show your work A debit to Interest Payable for $480,000 x .07. A credit to Interest Payable for $480,000 x .07. A debit to Interest Payable for $480,000 x .07 х 6/12. A credit to Interest Payable for $480,000 x .07 х 6/12.
K Optical Dispensary borrowed $960.000 on January 2, 2024, by issuing a 12% serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2, 2025 Complete the missing information. Assume bonds are issued at face value. (For accounts with a 50 balance, make sure to enter to in the appropriate cell) Current Liabilities Bonds Payable Interest Payable Long-Term Liabilities: Bonds Payable 2024 December 31 2025 2026
tELLiy, you must enter your ID number on the first sheet! On January 1, 2020 Omsk Corporation issued Bonds pay interest each July 1 and January 1. 150,000 of 5 % bonds, due in 17 years 12 % market rate of interest. Assume Requirements (Round to 0 decimals, Rounding errors do not matter): 1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 6. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021
Subject: acounting
An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
Aggies Inc. issued bonds with a $450,000 face value, 8% interest rate, and a 4-year term on July 1, 2018, and received $510,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank. A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 B. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 C.
25. Bonds Issued at a Discount (Effective Interest) Crafty Corporation issued $475,000 of 5%, seven-year bonds on December 31, 2022, for $448,484. Interest is paid annually on December 31. The market rate of interest is 6%. Required: Prepare the journal entries for December 31, 2023 and 2024. For those boxes in which no entry is required, leave the box blank. If required, round your answers to the nearest whole dollar.
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