Question
In: Accounting
On January 1 Dixon Corporation sold $400,000 of 10-year sinking fund bonds. The corporation expects to...
On January 1 Dixon Corporation sold $400,000 of 10-year sinking
fund bonds. The corporation expects to earn 15% on the sinking fund
balance and is required to deposit $23,000 at the end of each year
with the trustee. Record the following entries:a. The first
deposit.b. Earnings of $3,450 at the end of first period.c. Payment
of bondholders with sinking fund having a balance of
$402,000.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On January 1, Year 1, Shine Corporation purchased as an investment $400,000 of 10-year, 8% bonds....
On January 1, Year 1, Shine Corporation purchased as an
investment $400,000 of 10-year, 8% bonds. The bonds pay interest
semi-annually on June 30 and December 31. The bonds will yield 10%
on an annual basis. All amounts are rounded to the nearest dollar.
Shine Corporation intends to hold the bonds to maturity and
therefore uses the cost/amortized cost model. Shine Corp. follows
IFRS.
Required
Calculate the purchase price of the bond investment.
Prepare a bond amortization table for the...
Sim Corporation sold $400,000 of 12 percent, 10-year bonds at face value on September 1, 2014....
Sim Corporation sold $400,000 of 12 percent, 10-year bonds at
face value on September 1, 2014. The issue date of the bonds was
May 1, 2014. 1. Prepare the journal entries to record the sale of
the bonds on September 1 and the first semiannual interest payment
on November 1, 2014. 2. The company’s fiscal year ends on December
31, and this is its only bond issue. What is the bond interest
expense for the year ended December 31, 2014?
Blackberry Corporation sold $2,500,000 of 10 year 8% bonds on January 1, 2018. The bonds were dated...
Blackberry Corporation sold $2,500,000 of 10 year 8% bonds on
January 1, 2018. The bonds were dated January 1, 2018
and pay interest on July 1 and January 1. Blackberry
uses the straight-line method to amortize and bond premium or
discount. Blackberry’s year end is December 31.
Instructions:
a. Prepare
all the necessary journal entries to record the issue of the bonds
and bond interest expense for 2018, assuming:
1. that
the bonds sold at 100 (face value)
2. that
the bonds sold at 103
3. that...
Kershaw Electric sold $4,600,000, 10%, 10-year bonds on January 1, 2017. The bonds were dated January...
Kershaw Electric sold $4,600,000, 10%, 10-year bonds on January
1, 2017. The bonds were dated January 1, 2017, and paid interest on
January 1. The bonds were sold at 95.
At December 31, 2017, $8,100 of the Discount on Bonds Payable
account has been amortized. Show the balance sheet presentation of
the long-term liability at December 31, 2017.
On January 1, 2019, when the carrying value of the bonds was
$4,386,200, the company redeemed the bonds at 103. Record the...
On January 1, 2020, Perfection Company issued $400,000 of 10%, 6-year bonds dated January 1, 2020,...
On January 1, 2020, Perfection Company issued $400,000 of 10%,
6-year bonds dated January 1, 2020, with interest payments every
June 30 and December 31. The bonds were issued at $382,762 when the
market rate was 11%. Perfection Company amortizes any premium or
discount using the EFFECTIVE-INTEREST-RATE method. Round
all numbers to the nearest whole number.
1-Using proper formatting (eliminating the date), prepare the
journal entry on January 1, 2020 to record the issuance of the
bonds.
2-Using proper formatting...
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,560,000...
On January 1 of this year, Victor Corporation sold bonds with a
face value of $1,560,000 and a coupon rate of 10 percent. The bonds
mature in four years and pay interest semiannually every June 30
and December 31. Victor uses the straight-line amortization method
and also uses a premium account. Assume an annual market rate of
interest of 8 percent.
1. Prepare the journal entry to record the
issuance of the bonds.
2. Prepare the journal entry to record...
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,560,000...
On January 1 of this year, Victor Corporation sold bonds with a
face value of $1,560,000 and a coupon rate of 10 percent. The bonds
mature in four years and pay interest semiannually every June 30
and December 31. Victor uses the straight-line amortization method
and also uses a premium account. Assume an annual market rate of
interest of 8 percent. (FV of $1, PV of $1, FVA of $1, and PVA of
$1) (Use the appropriate factor(s) from the...
) Windsor Co. sold $1,940,000 of 10%, 10-year bonds at 104 on January 1, 2017. The...
) Windsor Co. sold $1,940,000 of 10%, 10-year bonds at 104 on
January 1, 2017. The bonds were dated January 1, 2017, and pay
interest on July 1 and January 1. If Windsor uses the straight-line
method to amortize bond premium or discount, determine the amount
of interest expense to be reported on July 1, 2017, and December
31, 2017.
Sheridan Inc. issued $590,000 of 9%, 10-year bonds on June 30,
2017, for $553,237. This price provided a yield of...
Grouper Corporation sold $2,400,000, 9%, 5-year bonds on January 1, 2022. The bonds were dated January...
Grouper Corporation sold $2,400,000, 9%, 5-year bonds on January
1, 2022. The bonds were dated January 1, 2022, and pay interest on
January 1. Grouper Corporation uses the straight-line method to
amortize bond premium or discount. (a) Prepare all the necessary
journal entries to record the issuance of the bonds and bond
interest expense for 2022, assuming that the bonds sold at 103.
(Credit account titles are automatically indented when amount is
entered. Do not indent manually.) Date Account Titles...
Ayayai Corporation sold $2,100,000, 6%, 5-year bonds on January 1, 2022. The bonds were dated January...
Ayayai Corporation sold $2,100,000, 6%, 5-year bonds on January
1, 2022. The bonds were dated January 1, 2022, and pay interest on
January 1. Ayayai Corporation uses the straight-line method to
amortize bond premium or discount. Prepare all the necessary
journal entries to record the issuance of the bonds and bond
interest expense for 2022, assuming that the bonds sold at 102.
Prepare journal entries to record the issuance of the bonds and
bond interest expense for 2022, assuming that...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Discuss the main issues (select some) that men and women must confront during the middle and...
- Quesiton 3 a. 1492 is a significant date in the history of humanity. Please mention several...
- Create an HTML form with the following: 2 text input fields 1 text area 2 radio...
- The concept that objects, embedded with hardware capable of sensing, processing and transmitting data, are increasingly...
- Consider the functionh(z) =2iz+1 defined on the extended complex plane. The functionhcan beviewed as a composition...
- Design and write an efficient Python function (with tester code) for finding the 10 largest elements...
- As you might imagine the ABC Tank Manufacturing Company uses an activity-based costing system. ABC has...
ADVERTISEMENT