Question
In: Accounting
On June 30, 2017, Pearl Company issued $4,300,000 face value of 13%, 20-year bonds at $4,623,487,...
On June 30, 2017, Pearl Company issued $4,300,000 face value of 13%, 20-year bonds at $4,623,487, a yield of 12%. Pearl uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.
Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
| (1) | The issuance of the bonds on June 30, 2017. | |
| (2) | The payment of interest and the amortization of the premium on December 31, 2017. | |
| (3) | The payment of interest and the amortization of the premium on June 30, 2018. | |
| (4) | The payment of interest and the amortization of the premium on December 31, 2018. |
|
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
| (1) |
June 30, 2017 |
|||
| (2) |
December 31, 2017 |
|||
| (3) |
June 30, 2018 |
|||
| (4) |
December 31, 2018 |
|||
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Instructions
(Round answers to the
nearest cent.)
(a) Prepare the journal entries to
record the following transactions.
1.The issuance of the bonds on June 30,
2017.
2.The payment of interest and the amortization
of the premium on December...
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Prepare the journal entries to record the following transactions.
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effective-interest method to amortize bond premium or discount. The
bonds pay semiannual interest on June 30 and December 31. Prepare
the journal entries to record the following transactions. (Round
answer to 0 decimal places, e.g. 38,548. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts. Credit account titles...
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Partially correct answer iconYour answer is partially
correct.
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transactions. (Round answer to 0 decimal places, e.g.
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titles...
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Prepare the journal entries to record the following
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