Question
In: Accounting
*SOLVE USING THE STRAIGHT-LINE METHOD* Universal Foods issued 12% bonds, dated January 1, with a face...
*SOLVE USING THE STRAIGHT-LINE METHOD*
Universal Foods issued 12% bonds, dated January 1, with a face
amount of $175 million on January 1, 2021 to Wang Communications.
The bonds mature on December 31, 2035 (15 years). The market rate
of interest for similar issues was 14%. Interest is paid
semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA
of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
Required:
1. to 3. Prepare the journal entries to record the
purchase of the bonds by Wang Communications on January 1, 2021,
interest revenue on June 30, 2021 and interest revenue on December
31, 2028. (Round final answers to the nearest whole
dollars. If no entry is required for a transaction/event, select
"No journal entry required" in the first account
field.)
1. Record the investment in bonds on January 1, 2021.
2. Record the interest on June 30, 2021.
3. Record the interest on December 31, 2028.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Universal Foods issued 12% bonds, dated January 1, with a face amount of $200 million on...
Universal Foods issued 12% bonds, dated January 1, with a face
amount of $200 million on January 1, 2021. The bonds mature on
December 31, 2030 (10 years). The market rate of interest for
similar issues was 14%. Interest is paid semiannually on June 30
and December 31. Universal uses the straight-line method. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
Required:...
Universal Foods issued 12% bonds, dated January 1, with a face amount of $180 million on...
Universal Foods issued 12% bonds, dated January 1, with a face
amount of $180 million on January 1, 2018 to Wang Communications.
The bonds mature on December 31, 2032 (15 years). The market rate
of interest for similar issues was 14%. Interest is paid
semiannually on June 30 and December 31. Universal uses the
straight-line method. Universal Foods sold the entire bond issue to
Wang Communications. (FV of $1, PV of $1, FVA of $1, PVA of $1,
FVAD of...
Universal Foods issued 12% bonds, dated January 1, with a face amount of $195 million on...
Universal Foods issued 12% bonds, dated January 1, with a face
amount of $195 million on January 1, 2021 to Wang Communications.
The bonds mature on December 31, 2035 (15 years). The market rate
of interest for similar issues was 14%. Interest is paid
semiannually on June 30 and December 31.
(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD
of $1) (Use appropriate factor(s) from the tables provided.)
Required: 1. to...
Universal Foods issued 12% bonds, dated January 1, with a face amount of $195 million on...
Universal Foods issued 12% bonds, dated January 1, with a face
amount of $195 million on January 1, 2021 to Wang Communications.
The bonds mature on December 31, 2035 (15 years). The market rate
of interest for similar issues was 14%. Interest is paid
semiannually on June 30 and December 31.
(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD
of $1) (Use appropriate factor(s) from the tables provided.)
Required: 1. to...
Universal Foods issued 12% bonds, dated January 1, with a face amount of $225 million on...
Universal Foods issued 12% bonds, dated January 1, with a face
amount of $225 million on January 1, 2021. The bonds mature on
December 31, 2030 (10 years). The market rate of interest for
similar issues was 14%. Interest is paid semiannually on June 30
and December 31. Universal uses the straight-line method. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
Required:...
Universal Foods issued 12% bonds, dated January 1, with a face amount of $175 million on...
Universal Foods issued 12% bonds, dated January 1, with a face
amount of $175 million on January 1, 2021 to Wang Communications.
The bonds mature on December 31, 2035 (15 years). The market rate
of interest for similar issues was 14%. Interest is paid
semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA
of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use
appropriate factor(s) from the tables provided.)
Required:
1. to...
Universal foods issued 12% bonds, dated January 1, with a face amount of $155 million on...
Universal foods issued 12% bonds, dated January 1, with a face
amount of $155 million on January 1, 2018 to Wang Communcations.
The bonds mature on December 31, 2032 (15 years). The market rate
of interest for similar issues was 14%. Interest is paid
semiannually on June 30 and December 31. Universal uses the
straight line method. Universal Foods sold the entire bond issue to
Wang Communications.
Required: 1-3. Prepare the journal entry to record the purchase
of the bonds...
Universal foods issued 12% bonds, dated January 1, with a face amount of $155 million on...
Universal foods issued 12% bonds, dated January 1, with a face
amount of $155 million on January 1, 2018 to Wang Communcations.
The bonds mature on December 31, 2032 (15 years). The market rate
of interest for similar issues was 14%. Interest is paid
semiannually on June 30 and December 31. Universal uses the
straight line method. Universal Foods sold the entire bond issue to
Wang Communications.
Required: 1-3. Prepare the journal entry to record the purchase
of the bonds...
Universal Foods issued 12% bonds, dated January 1, with a face amount of $200 million on...
Universal Foods issued 12% bonds, dated January 1, with a face
amount of $200 million on January 1, 2021. The bonds mature on
December 31, 2030 (10 years). The market rate of interest for
similar issues was 14%. Interest is paid semiannually on June 30
and December 31. Universal uses the straight-line method. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
Required:...
Universal Foods issued 12% bonds, dated January 1, with a face amount of $155 million on...
Universal Foods issued 12% bonds, dated January 1, with a face
amount of $155 million on January 1, 2018 to Wang Communications.
The bonds mature on December 31, 2032 (15 years). The market rate
of interest for similar issues was 14%. Interest is paid
semiannually on June 30 and December 31. Universal uses the
straight-line method. Universal Foods sold the entire bond issue to
Wang Communications. (FV of $1, PV of $1, FVA of $1, PVA of $1,
FVAD of...
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