Question
In: Accounting
On June 30, 2020, Ivanhoe Company issued $3,420,000 face value of 16%, 20-year bonds at $4,449,160,...
On June 30, 2020, Ivanhoe Company issued $3,420,000 face value of 16%, 20-year bonds at $4,449,160, a yield of 12%. Ivanhoe uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.
(a)
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, 2020. | |
| (2) | The payment of interest and the amortization of the premium on December 31, 2020. | |
| (3) | The payment of interest and the amortization of the premium on June 30, 2021. | |
| (4) | The payment of interest and the amortization of the premium on December 31, 2021. |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On June 30, 2020, Ivanhoe Company issued $3,810,000 face value of 16%, 20-year bonds at $4,956,520,...
On June 30, 2020, Ivanhoe Company issued $3,810,000 face value
of 16%, 20-year bonds at $4,956,520, a yield of 12%. Ivanhoe uses
the effective-interest method to amortize bond premium or discount.
The bonds pay semiannual interest on June 30 and December 31.
(a)
Partially correct answer iconYour answer is partially
correct.
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...
On June 30, 2020, Pharoah Company issued $4,180,000 face value of 13%, 20-year bonds at $4,494,460,...
On June 30, 2020, Pharoah Company issued $4,180,000 face value
of 13%, 20-year bonds at $4,494,460, a yield of 12%. Pharoah uses
the effective-interest method to amortize bond premium or discount.
The bonds pay semiannual interest on June 30 and December 31.
(a)
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...
On June 30, 2020, Oriole Company issued $4,180,000 face value of 13%, 20-year bonds at $4,494,460,...
On June 30, 2020, Oriole Company issued $4,180,000 face value of
13%, 20-year bonds at $4,494,460, a yield of 12%. Oriole 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...
On June 30, 2020, Crane Company issued $5,640,000 face value of 14%, 20-year bonds at $6,488,600,...
On June 30, 2020, Crane Company issued $5,640,000 face value of
14%, 20-year bonds at $6,488,600, a yield of 12%. Crane uses the
effective-interest method to amortize bond premium or discount. The
bonds pay semiannual interest on June 30 and December 31. (a)
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...
On June 30, 2020, Nash Company issued $3,340,000 face value of 14%, 20-year bonds at $3,842,540,...
On June 30, 2020, Nash Company issued $3,340,000 face value of
14%, 20-year bonds at $3,842,540, a yield of 12%. Nash uses the
effective-interest method to amortize bond premium or discount. The
bonds pay semiannual interest on June 30 and December 31.
(a)
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...
On June 30, 2020, Buffalo Company issued $4,860,000 face value of 14%, 20-year bonds at $5,591,240,...
On June 30, 2020, Buffalo Company issued $4,860,000 face value
of 14%, 20-year bonds at $5,591,240, a yield of 12%. Buffalo uses
the effective-interest method to amortize bond premium or discount.
The bonds pay semiannual interest on June 30 and December 31.
(a) 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...
Exercise 14-09 On June 30, 2020, Indigo Company issued $4,380,000 face value of 14%, 20-year bonds...
Exercise 14-09 On June 30, 2020, Indigo Company issued
$4,380,000 face value of 14%, 20-year bonds at $5,039,020, a yield
of 12%. Indigo 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...
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...
On June 30, 2017, Novak Company issued $4,400,000 face value of 13%, 20-year bonds at $4,731,010,...
On June 30, 2017, Novak Company issued $4,400,000 face value of
13%, 20-year bonds at $4,731,010, a yield of 12%. Novak uses the
effective-interest method to amortize bond premium or discount. The
bonds pay semiannual interest on June 30 and December 31.
(1) What amount of interest expense is reported
for 2018? (Round answer to 0 decimal places, e.g.
38,548.)
(2) Will the bond interest expense reported in
2018 be the same as, greater than, or less than the amount...
On June 30, 2017, Crane Company issued $3,800,000 face value of 13%, 20-year bonds at $4,085,872,...
On June 30, 2017, Crane Company issued $3,800,000 face value of
13%, 20-year bonds at $4,085,872, a yield of 12%. Crane 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...
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