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Zapzap Corporation issued $4,000,000 in five-year, 4% bonds on August 1, 2019. Interest is to be...
Zapzap Corporation issued $4,000,000 in five-year, 4% bonds on August 1, 2019. Interest is to be paid semi-annually on Feb 1 and August 1. The bonds were sold to yield 6% effective annual interest. Pine Corporation has a calendar year-end and follows IFRS. Instructions: Prepare the entries required for these bonds at • December 31, 2019(year end) • February 1, 2020 • August 1, 2020 when the interest was paid, and the entire issue was retired early for $4,350,000 plus interest.
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Expert Solution
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
ekkarill92 answered 1 year agoRelated Solutions
BU Curriculum Corporation issued $900,000 of 7% bonds on August 1, 2019, due on August 1, 2024. The interest is to be paid twice a year on February 1 and August 1.
Bond interest and discount amortization.
BU Curriculum Corporation issued $900,000 of 7% bonds on August 1, 2019, due on August 1, 2024. The interest is to be paid twice a year on February 1 and August 1. The bonds were sold to yield 9% effective annual interest. BU Curriculum Corporation closes its books annually on December 31.
(b) Prepare the journal entries for the following:
1. August 1, 2019 bond issue
2. Adjusting entry for December 31, 2019...
BU Curriculum Corporation issued $900,000 of 7% bonds on August 1, 2019, due on August 1,...
BU Curriculum
Corporation issued $900,000 of 7% bonds on August 1, 2019, due on
August 1, 2024. The interest is to be paid twice a year on February
1 and August 1. The bonds were sold to yield 9% effective annual
interest. BU Curriculum Corporation closes its books annually on
December 31.
(b) Prepare the journal entries for the following:
1.
August 1, 2019 bond issue
2. Adjusting entry for December 31, 2019 (adjusting entry should
cover 5 months)
3....
BU Curriculum Corporation issued $900,000 of 7% bonds on August 1, 2019, due on August 1,...
BU Curriculum
Corporation issued $900,000 of 7% bonds on August 1, 2019, due on
August 1, 2024. The interest is to be paid twice a year on February
1 and August 1. The bonds were sold to yield 9% effective annual
interest. BU Curriculum Corporation closes its books annually on
December 31.
(b) Prepare the journal entries for the following:
1.
August 1, 2019 bond issue
2. Adjusting entry for December 31, 2019 (adjusting entry should
cover 5 months)
3....
On August 1, 2019, United Corporation issued $9.50 million of 6% bonds at 104. The bonds...
On August 1, 2019, United Corporation issued $9.50 million of 6%
bonds at 104. The bonds mature in 20 years. Each $1,000 bond was
issued with 20 detachable stock warrants, each of which entitled
the bondholder to purchase, for $45, one share of United $5 par
common stock. World Company purchased 20% of the bond issue. On
August 1, 2019, the market value per share for United stock was $51
and the market value of each warrant was $7. In...
On August 1, 2019, United Corporation issued $9.20 million of 8% bonds at 105. The bonds...
On August 1, 2019, United Corporation issued $9.20 million of 8%
bonds at 105. The bonds mature in 20 years. Each $1,000 bond was
issued with 20 detachable stock warrants, each of which entitled
the bondholder to purchase, for $42, one share of United $5 par
common stock. World Company purchased 10% of the bond issue. On
August 1, 2019, the market value per share for United stock was $48
and the market value of each warrant was $6. In...
On August 1, 2019, United Corporation issued $9.50 million of 6% bonds at 104. The bonds...
On August 1, 2019, United Corporation issued $9.50 million of 6%
bonds at 104. The bonds mature in 20 years. Each $1,000 bond was
issued with 20 detachable stock warrants, each of which entitled
the bondholder to purchase, for $45, one share of United $5 par
common stock. World Company purchased 20% of the bond issue. On
August 1, 2019, the market value per share for United stock was $51
and the market value of each warrant was $7. In...
Jan 1, 2017, Ky Corporation issues $4,000,000 of 10 percent, five year bonds at 92.79. Interest...
Jan 1, 2017, Ky Corporation issues $4,000,000 of 10 percent,
five year bonds at 92.79. Interest is paid ANNUALLY, and the
effective interest rate of 12% is used for amortization.
What amount was received for the bonds?
Make Journal entries for the Jan 1 issuance of the bond and the
first two interest transactions: December 31, 2017 (accrual) and
Dec 31, 2018 (accrual).
Pine Corporation issued $500,000 in ten-year, 8% bonds on September 1, 2019. Interest is to be...
Pine Corporation issued $500,000 in ten-year, 8% bonds on
September 1, 2019. Interest is to be paid semi-annually on May 1
and November 1. The bonds were sold to yield 6% effective annual
interest. Pine Corporation has a calendar year-end and follows
IFRS.
Instructions: Prepare the entries required for these bonds at •
December 31, 2019(year end) • March 1, 2020 • September 1, 2020
when the interest was paid and the entire issue was retired early
for $575,000 plus...
On August 1, 2017, Indigo Corporation issued $504,000, 8%, 10-year bonds at face value. Interest is...
On August 1, 2017, Indigo Corporation issued $504,000, 8%,
10-year bonds at face value. Interest is payable annually on August
1. Indigo’s year-end is December 31.
Prepare a tabular summary to record the following events.
(a)
The issuance of the bonds.
(b)
The accrual of interest on December 31, 2017.
(c)
The payment of interest on August 1, 2018.
Cash
=
Bonds Pay.
+
Interest Pay.
+
Common Stock
+
Revenue
-
Expense
-
Dividend
Aug 1 2017 504000(cash) 504000(bonds)...
Grove Corporation issued $2,400,000 of 8% bonds on October 1, 2019. The interest is to be...
Grove Corporation issued $2,400,000 of 8% bonds on October 1,
2019. The interest is to be paid twice a year on April 1 and
October 1. The bonds were sold to yield 7% effective annual
interest. Assume the proceeds at the time of issue were $2,514,672.
a. Prepare an amortization schedule for April 1 and October 1, 2020
using the effective-interest method. Round all amounts to the
nearest dollar. (5 points) b. Using the above information, record
the bond issue...
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