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In: Accounting
In February 2019 a corporation issued a 10,000,000, 10 year, 3% installment note to purchase a...
In February 2019 a corporation issued a 10,000,000, 10 year, 3% installment note to purchase a building. ( Ricky's Store August 2019). The note had payments of $2,500,000 due on February 20 of each year for the next 15 years.
1) Prepare the adjusting journal entry to accrue interest on November 20, 2019.
2) Show the correct account(s) and correct amount(s) and where it will appear on a multiple-step income statement for the year ending November 20, 2019.
3) Show the correct account(s) and correct amount(s) and where they will appear on a classified balance sheet prepared dated November 20, 2019.
4) On April 16, 2020 a corporation issued $35,000,000 of 25-year, 2.50% bonds, for 94.5. (Ricky's Store August 2019) Interest is payable semi-annually on October 28 and June 15. Present entries, in proper form, to record the following transactions (2-4):
Solutions
ekkarill92 answered 1 year agoRelated Solutions
In February 2019 a corporation issued a 10,000,000, 10 year, 3% installment note to purchase a...
In February 2019 a corporation issued a 10,000,000, 10 year, 3%
installment note to purchase a building. ( Ricky's Store August
2019). The note had payments of $2,500,000 due on February 20 of
each year for the next 15 years.
1) Prepare the adjusting journal entry to accrue interest on
November 20, 2019.
2) Show the correct account(s) and correct amount(s) and where
it will appear on a multiple-step income statement for the year
ending November 20, 2019.
3) Show...
On February 1, 2019, Ellison Co. issued 10 year callable bonds with a face value of...
On February 1, 2019, Ellison Co. issued 10 year callable bonds
with a face value of $200,000,000and a stated interest rate of
6.6%, payable semiannually on July 1 and January 1. The bonds were
sold to yield 6%.
a. Calculate the issue price of the bonds.
b. Record the issuance on February 1, 2019.
c. Prepare the journal entries for the interest expense and
payments for 2019, 2020, 2021, 2022 and 2023. (you will need to
prepare amortization schedule)
d....
1. On February 1, 2016, Ellison Co. issued eight-year bonds with a face value of $10,000,000...
1. On February 1, 2016, Ellison Co. issued eight-year bonds with
a face value of $10,000,000 and a stated interest rate of 4%,
payable semiannually on July 1 and January The bonds were sold to
yield is 6%. What is the issuance price of the bond? Record the
journal entries for February 2016 and issuance at July 1, 2016.
2. Using the information above, assume that the bonds issued by
Ellison Co. are convertible with each $1,000 convertible into 25...
1. On February 1, 2018, Ellison Co. issued eight-year bonds with a face value of $10,000,000...
1. On February 1, 2018, Ellison Co. issued eight-year bonds with
a face value of $10,000,000 and a stated interest rate of 7%,
payable semiannually on July 1 and January 1. The bonds were sold
to yield 8%. The bonds are callable at 101 and convertible.
The issue price of the bonds is
Record the journal entries for February 2018 at issuance and
July 1.
2. Using the information above, assume that the bonds issued by
Ellison Co. are convertible...
On January 1, Year 1, Luzak Company issued a $120,000, five-year, 6% installment note to McGee...
On January 1, Year 1, Luzak Company issued a $120,000,
five-year, 6% installment note to McGee Bank. The note requires
annual payments of $28,488, beginning on December 31, Year 1.
Journalize the entries to record the following transactions.
Refer to the Chart of Accounts for exact wording of account
titles.
Year 1
Jan.
1
Issued the note for cash at its face amount.
Dec.
31
Paid the annual payment on the note, which consisted of
interest of $7,200 and principal...
On January 1, 2019, Ridge Company issued $10,000,000 face value bonds for 10 years at 12%....
On January 1, 2019, Ridge Company issued $10,000,000 face value
bonds for 10 years at 12%. The bonds are issued at 96, and dated
January 1. Interest is paid annually on January 1. The end of
Ridge’s fiscal year is December 31. Required: 1. Prepare the
necessary journal entries for the year 2019. 2. Show the balance
sheet presentation on December 31, 2019. 3. Prepare the necessary
journal entries for the year 2020. 4. What is the carrying value of...
On January 1, 2019, Ridge Company issued $10,000,000 face value bonds for 10 years at 12%....
On January 1, 2019, Ridge Company issued $10,000,000 face value
bonds for 10 years at 12%. The bonds are issued at 96, and dated
January 1. Interest is paid annually on January 1.
The end of Ridge’s fiscal year is December 31.
Required:
1. Prepare the necessary
journal entries for the year 2019.
2. Show the balance sheet
presentation on December 31, 2019.
3. Prepare the necessary
journal entries for the year 2020.
4. What is the carrying value
of the bonds at the...
On January 1, Luther Co. issued a $1,000,000, five-year, 8% installment note payable with payments of...
On January 1, Luther Co. issued a $1,000,000, five-year, 8%
installment note payable with payments of $250,456 principal plus
interest due on January 1 of each year for the next five years.
Required:
1.
Prepare the adjusting journal
entry at December 31 to accrue interest for the year. Refer to the
Chart of Accounts for exact wording of account titles.
2.
Show the account(s) and
amount(s) and where it(they) will appear on a multi-step income
statement prepared on December 31....
On May 20, 2020 Beopple Stratified Wall Systems issued at 94.0 at $10,000,000 5 year note...
On May 20, 2020 Beopple Stratified Wall Systems issued at 94.0
at $10,000,000 5 year note payable to Retsoff Equity Advance
Partners at a stated rate of 7.5%. BSW incurred bic at 90 bps. The
note required calendar-year quarterly payments and was secured by a
first mortgag lien on finished goods.
Required: Book the note issuance and
the 2Q interest accrual for BSW.
On January 1, 2019, Rubin Co. issued a 3-year non-interest-bearing note of $250,000 in exchange for...
On January 1, 2019, Rubin Co. issued a 3-year
non-interest-bearing note of $250,000 in exchange for a custom-made
machine for which there is no obvious market value. The appropriate
discount rate is 5%. Prepare the journal entry to purchase this
machine.
Looking at the transaction above, how much interest expense
would be recorded in 2019 by Rubin Co.?
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