Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 11, Problem 11.6EX
Entries for issuing and calling bonds; gain
Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $18,000,000 of 20-year, 4% callable bonds on May 1, Year 1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.
| Year 1 | |
| May 1. | Issued the bonds for cash at their face amount. |
| Nov. 1. | Paid the interest on the bonds. |
| Year 5 | |
| Nov. 1. | Called the bond issue at 99, the rate provided in the bond indenture. (Omit entry for payment of interest.) |
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Entries for issuing and calling bonds; gain
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$396,000 of 10-year, 8% callable bonds on May 1, 20Y5, at their face amount, with interest payable on May 1 and
November 1. The fiscal year of the company is the calendar year.
Journalize the entries to record the following selected transactions:
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November 1
20Y9
November 1
20Y5 May 1
Issued the bonds for cash at their face amount.
If an amount box does not require an entry, leave it blank.
Paid the interest on the bonds.
Issued the bonds for cash at their face amount.
20Y5 Nov. 1
Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of
interest.)
Paid the interest on the bonds.
20Y9 Nov. 1
88
Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.)
88
Entries for Issuing and Calling Bonds; Gain
Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $722,000 of 10-year, 12% callable bonds on May 1, 20Y5, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.
Journalize the entries to record the following selected transactions:
20Y5
May 1
Issued the bonds for cash at their face amount.
Nov. 1
Paid the interest on the bonds.
20Y9
Nov. 1
Called the bond issue at 98, the rate provided in the bond indenture. (Omit entry for payment of interest.)
If an amount box does not require an entry, leave it blank.
Entries for Issuing and Calling Bonds;
Gain Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $1,536,000 of 20-year, 9% callable bonds on May 1, 20Y5, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year.
1.) Journalize the entries to record the following selected transactions:
20Y5
May 1: Issued the bonds for cash at their face amount.
Nov 1: Paid the interest on the bonds.
20Y9
Nov 1: Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.)
If an amount box does not require an entry, leave it blank.
2.) Issued the bonds for cash at their face amount
20Y5 May 1: Cash
Bonds Payable
3.) Called the bond issue at 96, the rate provided in the bond indenture. (Omit entry for payment of interest.)
20Y9 Nov 1: Bonds Payable
Gain on Redemption of Bonds
Cash
Chapter 11 Solutions
Corporate Financial Accounting
Ch. 11 - Describe the two distinct obligations incurred by...Ch. 11 - Explain the meaning of each of the following terms...Ch. 11 - If you asked your broker to purchase for you a 12%...Ch. 11 - A corporation issues 26,000,000 of 9% bonds to...Ch. 11 - If bonds issued by a corporation are sold at a...Ch. 11 - Prob. 6DQCh. 11 - Bonds Payable has a balance of 5,000,000 and...Ch. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Issuing bonds at face amount On January 1, the...
Ch. 11 - Issuing bonds at a discount On the first day of...Ch. 11 - Prob. 11.3BECh. 11 - Prob. 11.4BECh. 11 - Prob. 11.5BECh. 11 - Redemption of bonds payable A 500,000 bond issue...Ch. 11 - Prob. 11.1EXCh. 11 - Entries for issuing bonds Thomson Co. produces and...Ch. 11 - Prob. 11.3EXCh. 11 - Prob. 11.4EXCh. 11 - Entries for issuing and calling bonds; loss Hoover...Ch. 11 - Entries for issuing and calling bonds; gain Mia...Ch. 11 - Prob. 11.7EXCh. 11 - Present value of amounts due Assume that you are...Ch. 11 - Prob. 11.9EXCh. 11 - Present value of an annuity On January 1 you win...Ch. 11 - Prob. 11.11EXCh. 11 - Prob. 11.12EXCh. 11 - Present value of bonds payable; premium Moss Co....Ch. 11 - Amortize discount by interest method On the first...Ch. 11 - Amortize premium by interest method Shunda...Ch. 11 - Prob. 11.16EXCh. 11 - Prob. 11.17EXCh. 11 - Bond discount, entries for bonds payable...Ch. 11 - Prob. 11.2APRCh. 11 - Entries for bonds payable, including bond...Ch. 11 - Prob. 11.4APRCh. 11 - Prob. 11.5APRCh. 11 - Bond discount, entries for bonds payable...Ch. 11 - Prob. 11.2BPRCh. 11 - Prob. 11.3BPRCh. 11 - Bond discount, entries for bonds payable...Ch. 11 - Prob. 11.5BPRCh. 11 - Continuing Company AnalysisAmazon: Times interest...Ch. 11 - Arch Coal:Times interest earned Arch Coal, Inc. is...Ch. 11 - Aeropostale: Times interest earned Aeropostale,...Ch. 11 - Prob. 11.4ADMCh. 11 - Ethics in Action CLG Capital Inc. is a large...Ch. 11 - Prob. 11.3TIF
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