Question
In: Accounting
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 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. |
|
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
| (1) |
June 30, 2020 |
|||
| (2) |
December 31, 2020 |
|||
| (3) |
June 30, 2021 |
|||
| (4) |
December 31, 2021 |
|||
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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the effective-interest method to amortize bond premium or discount.
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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
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(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
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(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...
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titles and enter 0 for the amounts. Credit account titles...
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