P10-10A Prepare journal entries to record issuance of bonds, payment of interest, and amortization of bond discount – SeeTutorials.com
P10-8A Prepare journal entries to record issuance of bonds, interest, straight-line amortization, and balance sheet presentation
| |||||||||||||
and balance sheet presentation
| |||||||||||||
Yung Corporation sold $2,000,000, 7%, 5 year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest
| |||||||||||||
on January 1. The company uses straight-line amortization on bond premiums or discounts.
| |||||||||||||
Instructions
| |||||||||||||
(a)
|
Prepare all necessary journal entries to record the issuance of the bonds and bond interest expense for 2014,
| ||||||||||||
assuming the bond sold at 102.
| |||||||||||||
(b)
|
Prepare journal entries as in part (a) assuming the bonds sold at 97.
| ||||||||||||
(c )
|
Show the balance sheet presentation for the bond issue at December 31, 2014, using (1) the 102 selling price, and
| ||||||||||||
then (2) the 97 selling price
| |||||||||||||
P10-8B Prepare journal entries to record issuance of bonds, interest, straight-line amortization, and balance sheet presentation
| |||||||||||||
and balance sheet presentation
| |||||||||||||
Holmes Corporation sold $2,200,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest
| |||||||||||||
on January 1. Holmes Corporation uses the straight-line method to amortize bond premiums or discounts.
| |||||||||||||
Instructions
| |||||||||||||
(a)
|
Prepare all necessary journal entries to record the issuance of the bonds and bond interest expense for 2014,
| ||||||||||||
assuming the bond sold at 102.
| |||||||||||||
(b)
|
Prepare journal entries as in part (a) assuming g the bonds sold at 98.
| ||||||||||||
(c )
|
Show the balance sheet presentation for the bond issue at December 31, 2014, using (1) the 102 selling price, and
| ||||||||||||
then (2) the 98 selling price
| |||||||||||||
P10-10A Prepare journal entries to record issuance of bonds, payment of interest, and amortization of bond discount
| |||||||||||||
using effective interest method
| |||||||||||||
On January 1, 2014, Lock Corporation issued $1,800,000 face value, 5%, 10 year bonds at $1,667,518. This price resulted in
| |||||||||||||
an effective interest rate of 6% on the bonds. Lock uses the effective-interest method to amortize bond premium or discount.
| |||||||||||||
The bond pay annual interest January 1.
| |||||||||||||
Instructions
| |||||||||||||
(Round all computations to the nearest dollar.)
| |||||||||||||
(a)
|
Prepare the journal entry to record the issuance of the bonds on January 1, 2014.
| ||||||||||||
(b)
|
Prepare an amortization table through December 31, 2016 (three interest periods) for this bond issue.
| ||||||||||||
(c )
|
Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2014.
| ||||||||||||
(d)
|
Prepare the journal entry to record the payment of interest on January 1, 2015.
| ||||||||||||
(e )
|
Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2015.
| ||||||||||||
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” .
|
Comments
Post a Comment