QUESTION 4 Describe the journal entries required to record the issuance of bonds at par and...

QUESTION 4

Describe the journal entries required to record the issuance of bonds at par and the payment of bond interest.

Expert Solution

Journal Entries
Date	Account Title and explanation	Debit	Credit

	Journal entry for issuance of Bonds

	Cash	XXXX
	To Bonds		XXXX
	(To Record the issuance of Bonds)


	Journal Entry for record the interest Payment

	Interest Expenses	XXXX
	To Cash		XXXX
	(To Record the interest expenses of Bonds for the period XX)

Explanation for Issuance of Bonds: By issuing the Bonds we received the cash and we create the laibility for payment of interest against these bonds.

When we recived the cash then we debit the cash so Cash will be debited and there is liability to repay the value of bonds so we create the same by crediting the bonds.

Explanation for Interest Expenses: Interest Expenses is the interest amount which are payable on amount received against the bonds. Expenses should be debite so interest is debited and cash goes out so cash will be credited.

ekkarill92 answered 1 year ago

Describe the journal entries required to record the issuance of bonds at a premium and the...

Describe the journal entries required to record the issuance of bonds at a premium and the payment of bond interest, including any applicable amortization.

Question: Prepare journal entries to record the issuance of the bonds and the retirement of bonds....

Question: Prepare journal entries to record the issuance of the bonds and the retirement of bonds. (Show computations and round to the n... The December 31, 2018 balance sheet of Wolfe Co. included the following items: 7.5% bonds payable due December 31, 2026 $3,000,000 Unamortized discount on bonds payable 120,000 The bonds were issued on December 31, 2016 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.) On April 1, 2016, Wolfe retired $600,000 of...

QUESTION 1 Required: #1. Prepare journal entries to record the December transactions in the General Journal...

QUESTION 1 Required: #1. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $8500 in a bank account in the name of the company in...

Know the following Journal entries: The entry to record the issuance of 600 shares of $5...

Know the following Journal entries: The entry to record the issuance of 600 shares of $5 par value common stock for $15. Common stock is issued for 100, and par value is 90 A corporation paid $105,000 to retire bonds with a face value of $98,000 and an unamortized premium balance of $3,000. Know the dates for cash dividends and the journal entries for each Purchase and sell of treasury stock Bonds payable has a balance of $1,000,000 and a...

Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of...

Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Pitts Co.: March 1 Issued $2,000,000 face value Pitts Co. second mortgage, 8% bonds for $2,180,400, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102. June 1 Paid semiannual interest on Pitts Co. bonds. (Use straight-line amortization of any premium or...

2. Required: a) Prepare journal entries for all dates. Journal entries for the Tempe bonds (a,...

2. Required: a) Prepare journal entries for all dates. Journal entries for the Tempe bonds (a, b, c) Journal Entries for the Flagstaff bonds (d, e, f). No explanations or supporting computations are required. Use straight-line amortization. Do NOT use separate accounts for discounts and premiums; instead, net them into the Investments account. When computing amortization, round the monthly amortization amounts to the nearest cent. However, journal entry amounts can be rounded to the nearest dollar. The following information relates...

A. Prepare the journal entry required to record the preferred stock issue. B. Prepare the journal entries required...

A. Prepare the journal entry required to record the preferred stock issue. B. Prepare the journal entries required to record the declaration and payment of the cash dividends. C. Prepare the stockholders' equity section of the balance sheet at the end of the year. Tough Side Roofing and Siding Inc. reported the following shareholders' equity section as of the beginning of the current year. Stockholders' Equity Contributed Capital: Common Stock, $4 par value, 2,360,000 authorized and 785,000 shares issued, and 727,500 shares outstanding...

Required: #1. Prepare journal entries to record the December transactions in the General Journal Tab in...

Required: #1. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $8500 in a bank account in the name of the company in exchange for...

Entries for Bonds Payable. Prepare journal entries to record the following transactions related to long-term bonds...

Entries for Bonds Payable. Prepare journal entries to record the following transactions related to long-term bonds of Quirk Co. (a) On April 1, 2016, Quirk issued $2,000,000, 9% bonds for $2,151,472 including accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2026. (b) On July 1, 2018 Quirk retired $600,000 of the bonds at 102 plus accrued interest. Quirk uses straight-line amortization.

4–C. Part 1. General Fund Transactions Required: a. Record journal entries for the following transactions for...

4–C. Part 1. General Fund Transactions Required: a. Record journal entries for the following transactions for FY 2017. Make any computations to the nearest dollar. Journal entry explanations are not required. Use control accounts for revenues, expenditures and budgetary accounts. It is not necessary to reflect subsidiary ledger entries. (1) Encumbrances of $ 17,000 for purchase orders outstanding at the end of 2016 were re-established. (2) The January 1, 2017, balance in Deferred Inflows – Property Taxes relates to the...

Question