Question
In: Accounting
2. On March 1, 2016, Eagle Group Inc. sold $1,000,000, 9% bonds dated January 1, 2016...
2. On March 1, 2016, Eagle Group Inc. sold $1,000,000, 9% bonds dated January 1, 2016 for $1,105,256 plus $15,000 accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2026. On July 1, 2017 Eagle Group retired $300,000 of the bonds at 105 plus accrued interest. Eagle Group uses straight-line amortization.
Required:
Prepare the journal entry to record the redemption of $300,000 bonds on July 1, 2017.
3.
One way to structure a lease to qualify it as an operating lease for the lessee, but as a capital lease for the lessor is to use different discount rates for the lessees and the lessors. State the other method to achieve the same goal.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
2. On March 1, 2016, Eagle Group Inc. sold $1,000,000, 9% bonds dated January 1, 2016...
2. On March 1, 2016, Eagle Group
Inc. sold $1,000,000, 9% bonds dated January 1, 2016 for $1,105,256
plus $15,000 accrued interest. Interest is payable annually on
January 1, and the bonds mature on January 1, 2026. On July 1, 2017
Eagle Group retired $300,000 of the bonds at 105 plus accrued
interest. Eagle Group uses straight-line
amortization.
Required:
Prepare
the journal entry to record the redemption of $300,000 bonds on
July 1, 2017.
3.
One way to...
On january 1, 2016, Knorr Corporation issued $1,000,000 or 9%, 5-year bonds dated January 1, 2016....
On january 1, 2016, Knorr Corporation issued
$1,000,000 or 9%, 5-year bonds dated January 1, 2016. The bonds pay
interest on December 31. The bonds were issued to yield 10%. Bond
issue costs associated with the bonds totaled $18,000.
Prepare the journal entries to record the
following:
January 1, 2016: Sold the bonds at an effective
rate of 10%
December 21, 2016: First interest payment using the effective
interest method
December 31, 2016: Amortization of bond issue costs using the...
On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016....
On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%,
5-year bonds dated January 1, 2016. The bonds pay interest annually
on December 31. The bonds were issued to yield 10%. Bond issue
costs associated with the bonds totaled $20,058.17.
Required: Prepare the journal entries to record the
following:
January 1, 2016 Sold the bonds at an effective rate of 10%
December 31, 2016 First interest payment using the effective
interest method
December 31, 2016 Amortization of bond issue costs...
On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016....
On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%,
5-year bonds dated January 1, 2016. The bonds pay interest annually
on December 31. The bonds were issued to yield 10%. Bond issue
costs associated with the bonds totaled $20,058.17. Do not round
answers.
Required: Prepare the journal entries to record the following:
January 1, 2016 Sold the bonds at an effective rate of 10% December
31, 2016 First interest payment using the effective interest method
December 31, 2016 Amortization...
Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2016, for $111,283.65 on January 1,...
Chowan Corporation issued $115,000 of 9% bonds dated January 1,
2016, for $111,283.65 on January 1, 2016. The bonds are due
December 31, 2019, were issued to yield 10%, and pay interest
semiannually on June 30 and December 31. Chowan uses the effective
interest method of amortization.
Required:
Prepare the journal entries to
record the issue of the bonds on January 1, 2016, and the interest
payments on June 30, 2016, December 31, 2016, and June 30, 2017. In
addition,...
Grouper Corporation sold $2,400,000, 9%, 5-year bonds on January 1, 2022. The bonds were dated January...
Grouper Corporation sold $2,400,000, 9%, 5-year bonds on January
1, 2022. The bonds were dated January 1, 2022, and pay interest on
January 1. Grouper Corporation uses the straight-line method to
amortize bond premium or discount. (a) Prepare all the necessary
journal entries to record the issuance of the bonds and bond
interest expense for 2022, assuming that the bonds sold at 103.
(Credit account titles are automatically indented when amount is
entered. Do not indent manually.) Date Account Titles...
Wildhorse Co. sold $3,200,000, 9%, 10-year bonds on January 1, 2022. The bonds were dated January...
Wildhorse Co. sold $3,200,000, 9%, 10-year bonds on January 1,
2022. The bonds were dated January 1, 2022, and pay interest on
January 1. The company uses straight-line amortization on bond
premiums and discounts. Financial statements are prepared annually.
Prepare the journal entries to record interest expense for 2022
under both of the bond issuances assuming they sold at: (1) 101 and
(2) 98. Show the long-term liabilities balance sheet presentation
for issuance of the bonds sold at 101 at...
Wainwright Electric sold $3,000,000, 10%, 10-year bonds on March 1, 2015. The bonds were dated January...
Wainwright Electric sold $3,000,000, 10%, 10-year bonds on March
1, 2015. The bonds were dated January 1 and pay interest September
1 and March 1. Wainwright Electric uses the straight-line method to
amortize bond premium or discount. The bonds were sold at 104. The
company’s year ends on December 31.
Instructions
(a) Prepare the journal entry to record the issuance of the
bonds on March 1, 2015.
(b) Prepare a bond premium amortization schedule for the first 4
interest...
On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount...
On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January
1, with a face amount of $175 million. The bonds were priced at
$153.6 million (plus accrued interest) to yield 14%. Interest is
paid semiannually on June 30 and December 31. Baddour’s fiscal year
ends September 30.
Required: 1. to 3. What would be the amount(s) related to the
bonds Baddour would report in its balance sheet, income statement
and statement of cash flows for the year ended September...
On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016....
On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%,
5-year bonds dated January 1, 2016. The bonds pay interest annually
on December 31. The bonds were issued to yield 7%. Bond issue costs
associated with the bonds totaled $27,560.53.
Required: Prepare the journal entries to record the
following:
January 1, 2016 Sold the bonds at an effective rate of 7%
December 31, 2016 First interest payment using the effective
interest method
December 31, 2016 Amortization of bond issue costs...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Parallel Arrays This question is in MindTap Cengage Summary In this lab, you use what you...
- 5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella...
- JAVA Write a test program that prompts the user to enter a series of integers and...
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
ADVERTISEMENT