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In: Accounting
On February 1, 2018, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of...
On February 1, 2018, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of $860,000. The bonds sold for $786,220 and mature on January 31, 2038 (20 years). The market yield for bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31. Strauss-Lombardi’s fiscal year ends December 31. Required: 1. to 4. Prepare the journal entry to record their issuance by Strauss-Lombardi on February 1, 2018, interest on July 31, 2018 (at the effective rate), adjusting entry to accrue interest on December 31, 2018 and interest on January 31, 2019.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On February 1, 2021, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of...
On February 1, 2021, Strauss-Lombardi issued 9% bonds, dated
February 1, with a face amount of $940,000. The bonds sold for
$859,357 and mature on January 31, 2041 (20 years). The market
yield for bonds of similar risk and maturity was 10%. Interest is
paid semiannually on July 31 and January 31. Strauss-Lombardi’s
fiscal year ends December 31.
Required:
1. to 4. Prepare the journal entries to record
their issuance by Strauss-Lombardi on February 1, 2021, interest on
July 31,...
On February 1, 2018, Strauss-Lombardi issued 8% bonds, dated February 1, with a face amount of...
On February 1, 2018, Strauss-Lombardi issued 8% bonds, dated
February 1, with a face amount of $630,000. The bonds sold for
$572,036 and mature on January 31, 2038 (20 years). The market
yield for bonds of similar risk and maturity was 9%. Interest is
paid semiannually on July 31 and January 31. Strauss-Lombardi’s
fiscal year ends December 31.
Required:
1. to 4. Prepare the journal entry to record their
issuance by Strauss-Lombardi on February 1, 2018, interest on July
31,...
On February 1, 2021, Strauss-Lombardi issued 10% bonds, dated February 1, with a face amount of...
On February 1, 2021, Strauss-Lombardi issued 10% bonds, dated
February 1, with a face amount of $930,000. The bonds sold for
$855,382 and mature on January 31, 2041 (20 years). The market
yield for bonds of similar risk and maturity was 11%. Interest is
paid semiannually on July 31 and January 31. Strauss-Lombardi’s
fiscal year ends December 31.
Required:
1. to 4. Prepare the journal entries to record
their issuance by Strauss-Lombardi on February 1, 2021, interest on
July 31,...
On February 1, 2021, Strauss-Lombardi issued 10% bonds, dated February 1, with a face amount of...
On February 1, 2021, Strauss-Lombardi issued 10% bonds, dated
February 1, with a face amount of $720,000. The bonds sold for
$662,232 and mature on January 31, 2041 (20 years). The market
yield for bonds of similar risk and maturity was 11%. Interest is
paid semiannually on July 31 and January 31. Strauss-Lombardi’s
fiscal year ends December 31.
Required:
1. to 4. Prepare the journal entries to record
their issuance by Strauss-Lombardi on February 1, 2021, interest on
July 31,...
On February 1, 2018, Fox Corporation issued 9% bonds dated February 1, 2018, with a face...
On February 1, 2018, Fox Corporation issued 9% bonds dated
February 1, 2018, with a face amount of $240,000. The bonds sold
for $219,410 and mature in 20 years. The effective interest rate
for these bonds was 10%. Interest is paid semiannually on July 31
and January 31. Fox's fiscal year is the calendar year. Fox uses
the straight-line method of amortization.
Required:
1. Prepare the journal entry to record the bond
issuance on February 1, 2018.
2. Prepare the...
On February 1, 2016, Baker Company issued 9% bonds, dated February 1, with a face amount...
On February 1, 2016, Baker Company issued 9% bonds, dated
February 1, with a face amount of $ 80 million. The bonds mature on
January 31, 2020 ( 4 years). The market yield for bonds of similar
risk and maturity was 10%. Interest is paid semiannually on July 31
and January 31. The Fiscal years of both firms end December 31
Crimley Motor Products
Bond Issue: $80,000,000
Bond Issue years: 4 years
Bond Issue interest rate: 9%
Market Annual Yield:...
On February 1, 2018, Cromley Motor Products issued 9% bonds, dated February 1, with a face...
On February 1, 2018, Cromley Motor Products issued 9% bonds,
dated February 1, with a face amount of $60 million. The bonds
mature on January 31, 2022 (4 years). The market yield for bonds of
similar risk and maturity was 10%. Interest is paid semi-annually
on July 31 and January 31. Barnwell Industries acquired $60,000 of
the bonds as a long term investment. The fiscal years of both firms
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On February 1, 2018, Fox Corporation issued 7% bonds dated February 1, 2018, with a face...
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for $108,125 and mature in 20 years. The effective interest rate
for these bonds was 8%. Interest is paid semiannually on July 31
and January 31. Fox's fiscal year is the calendar year. Fox uses
the straight-line method of amortization.
Required: 1. Prepare the journal entry to record the bond
issuance on February 1, 2018.
2. Prepare the...
On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face...
On February 1, 2018, Wolf Inc. issued 10% bonds dated February
1, 2018, with a face amount of $200,000. The bonds sold for
$239,588 and mature in 20 years. The effective interest rate for
these bonds was 8%. Interest is paid semiannually on July 31 and
January 31. Wolf's fiscal year is the calendar year. Wolf uses the
effective interest method of amortization.
Required:
1. Prepare the journal entry to record the bond issuance on
February 1, 2018.
2. Prepare...
On February 1, 2018 Cromley Motor Products issued 10% bonds, dated February 1, with a face...
On February 1, 2018 Cromley Motor Products issued 10% bonds,
dated February 1, with a face amount of $90 million. The bonds
mature on January 31, 2022 (4 years). The market yield for bonds of
similar risk and maturity was 12%. Interest is paid semiannually on
July 31 and January 31. Barnwell Industries acquired $90,000 of the
bonds as a long-term investment. The fiscal years of both firms end
December 31.use FVof 1$, PV of 1$ etc.)
Required: 1. Determine...
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