Question
In: Accounting
On January 1, 2014, Housen Company issued 10-year bonds of $500,000 at 102. Interest is payable...
On January 1, 2014, Housen Company issued 10-year bonds of
$500,000 at 102. Interest is payable on January 1 and July 1 at
10%. April 1, 2015, Housen Company reacquires and retired 50 of its
own $1000 bonds at 98 plus accrued interest. The fiscal period for
Honsen Company is the calendar year.
Prepare entries to record (1) the issuance of the bonds,
(2) the interest payments and adjustments relating to the debt in
2014, (3) the reacquistion and retirement of bonds in 2015, and (4)
the interest payments and adjustments relating to the debt in 2015.
Assume the premium or discount is amortized on a straight-line
basis.
Solutions
Expert Solution
After 1 April 2015 retirement rest of the calculations are for $500000 less $50000 = $450,000 bonds
ekkarill92 answered 10 months agoRelated Solutions
Adcock Company issued $96,000, 8%, 20-year bonds on January 1, 2015, at 102. Interest is payable...
Adcock Company issued $96,000, 8%, 20-year bonds on January 1,
2015, at 102. Interest is payable semiannually on July 1 and
January 1. Adcock uses straight-line amortization for bond premium
or discount.
1) Prepare the journal entry to record the issuance of the
bonds
2) Prepare the journal entry to record the payment of interest
and the premium amortization on July 1, 2015, assuming that
interest was not accrued on June 30.
3) Prepare the journal entry to record the...
Sandhill Company issued $444,000 of 10%, 20-year bonds on January 1, 2017, at 102. Interest is...
Sandhill Company issued $444,000 of 10%, 20-year bonds on
January 1, 2017, at 102. Interest is payable semiannually on July 1
and January 1. Sandhill Company uses the effective-interest method
of amortization for bond premium or discount. Assume an effective
yield of 9.7705%.
Prepare the journal entries to record the following.
(a)The issuance of the bonds.
(b)The payment of interest and related
amortization on July 1, 2017.
(c)The accrual of interest and the related
amortization on December 31, 2017.
Bramble Company issued $432,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is...
Bramble Company issued $432,000 of 10%, 20-year bonds on January
1, 2020, at 102. Interest is payable semiannually on July 1 and
January 1. Bramble Company uses the effective-interest method of
amortization for bond premium or discount. Assume an effective
yield of 9.7705%. Prepare the journal entries to record the
following. (Round intermediate calculations to 6 decimal places,
e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If
no entry is required, select "No Entry" for the account...
on January 1, year 2, London corporation issued a 10 year $500,000, 8%, bonds payable that...
on
January 1, year 2, London corporation issued a 10 year $500,000,
8%, bonds payable that pays interest semi-annually on July 1 and
January 1. on January 1, year 2, it is determined that the market
rate of bond was 10%. what is the amount of cash received from the
insurance of the 8% bond at the market rate of 10%?
On January 1, 2014, Robbins Company issued five-year, $500,000 face value, 8% bonds that paid interest...
On January 1, 2014, Robbins Company issued five-year, $500,000
face value, 8% bonds that paid interest every June 30th and
December 31st. The market rate of other similar bonds was 10%. On
December 31, 2017, Robbins redeemed the bonds at 102. What was the
gain or loss on redemption. Assume that Robbins uses the effective
interest method to amortize any premium or discount. (Select the
closest answer to the one you calculate):
a, $23,619 loss
b. $19,300 loss
c. $14,765...
On January 1, 2014 Mooney Co. issued $400,000, 9%, 5-year bonds at 97. Interest is payable...
On January 1, 2014 Mooney Co. issued $400,000, 9%, 5-year bonds
at 97. Interest is payable
annually on December 31
st
. The effective interest rate on the bond is 9.7871%
?
Prepare the journal entries for the original bond issue,
?
Prepare the amortization table for the bond discount. Make sure
this table includes the
amount of the discount amortized each year.
?
Prepare the journal entry for the interest payment in the first
year.
on January 1, 2014 baseline Corp. issued $20,000,000 of 12 %, Twenty-year bonds at 102. the...
on January 1, 2014 baseline Corp. issued $20,000,000 of 12 %,
Twenty-year bonds at 102. the bonds are callable at 105. Interest
on the bond is payable annualy. Baseline uses the Stright-line
method to amortize bond premium or discount. On january1, 2018,
Baseline Called 5,000,000 of the issue and retired the bond.
Required
a) prepare the journal entry to record the issuance of the bonds
on January 1, 2014
b) prepare the journal entry to record the retirement of the...
on January 1, 2014 baseline Corp. issued $20,000,000 of 12 %, Twenty-year bonds at 102. the...
on January 1, 2014 baseline Corp. issued $20,000,000 of 12 %,
Twenty-year bonds at 102. the bonds are callable at 105. Interest
on the bond is payable annualy. Baseline uses the Stright-line
method to amortize bond premium or discount. On january1, 2018,
Baseline Called 5,000,000 of the issue and retired the bond.
Required
a) prepare the journal entry to record the issuance of the bonds
on January 1, 2014
b) prepare the journal entry to record the retirement of the...
McGee Company issued $400,000 of 8%, 10-year bonds on January 1, 2017. Interest is payable semiannually...
McGee Company issued $400,000 of 8%, 10-year bonds on January 1,
2017. Interest is payable semiannually on July 1 and January 1.
Mcgee Company uses the effective interest method of amortization
for bond premium or discount. Assume an effective yield of 6% in
Pricing the bond.
Prepare the journal entries to record the following (round to
the nearest dollar.)
The issuance of the bonds.
The payment of interest and related amortization July 1.
The accrual of interest and the related...
1) K Company issued $672,000 of 11%, 20-year bonds on January 1, 2017, at 102. Interest is...
1) K Company issued $672,000 of 11%, 20-year bonds on
January 1, 2017, at 102. Interest is payable semiannually on July 1
and January 1. K Company uses the straight-line method of
amortization for bond premium or discount.
Prepare journal entries for the following:
a) The issuance of the bonds.
b) The payment of interest and the related amortization on July
1,2017.
c) The accrual of interest and the related amortization on
December 31, 2017.
2) Coronado Co. sold $1,930,000 of...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- MARGI sells different types of wine. Customers place orders to the most popular “Summer Wine” at...
- A firm's bonds have a maturity of 8 years with a $1,000 face value, have an...
- Naive reasoning suggests that a string theory vacuum with cosmological constant Lambda1 is always unstable as...
- I. Design and code a class Rectangle that has the following properties: Two private members double...
- A bond has a $1,000 par value, 10 years to maturity, and an 8% annual coupon...
- The following are the monthly rates of return for Madison Cookies and for Sophie Electric during...
- 1.) Think back to August 6, 1945. The United States has just dropped an atomic weapon...
ADVERTISEMENT