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In: Accounting
Cupola Fan Corporation issued 10%, $540,000, 10-year bonds for $516,000 on June 30, 2018. Debt issue...
Cupola Fan Corporation issued 10%, $540,000, 10-year bonds for $516,000 on June 30, 2018. Debt issue costs were $2,900. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2019), the corporation exercised its call privilege and retired the bonds for $520,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: 1. to 4. Prepare the journal entry to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2018 & 2019, and the call of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Cupola Fan Corporation issued 12%, $590,000, 10-year bonds for $556,000 on June 30, 2018. Debt issue...
Cupola Fan Corporation issued 12%, $590,000, 10-year bonds for
$556,000 on June 30, 2018. Debt issue costs were $3,400. Interest
is paid semiannually on December 31 and June 30. One year from the
issue date (July 1, 2019), the corporation exercised its call
privilege and retired the bonds for $566,000. The corporation uses
the straight-line method both to determine interest expense and to
amortize debt issue costs.
Required:
Prepare the journal entry to record the issuance of the bonds, the...
Cupola Fan Corporation issued 12%, $580,000, 10-year bonds for $552,000 on June 30, 2021. Debt issue...
Cupola Fan Corporation issued 12%, $580,000, 10-year bonds for
$552,000 on June 30, 2021. Debt issue costs were $3,300. Interest
is paid semiannually on December 31 and June 30. One year from the
issue date (July 1, 2022), the corporation exercised its call
privilege and retired the bonds for $560,000. The corporation uses
the straight-line method both to determine interest expense and to
amortize debt issue costs.
Required: 1. to 4. Prepare the journal entry to record the
issuance of...
Cupola Fan Corporation issued 12%, $460,000, 10-year bonds for $450,000 on June 30, 2021. Debt issue...
Cupola Fan Corporation issued 12%, $460,000, 10-year bonds for
$450,000 on June 30, 2021. Debt issue costs were $2,100. Interest
is paid semiannually on December 31 and June 30. One year from the
issue date (July 1, 2022), the corporation exercised its call
privilege and retired the bonds for $455,000. The corporation uses
the straight-line method both to determine interest expense and to
amortize debt issue costs.
Required:
1. to 4. Prepare the journal entry to record the issuance
of...
cupola fan corporation issued 10% 400,000, 10-year bonds for 385000 on June 30, 2021.
cupola fan corporation issued 10% 400,000, 10-year bonds for
385000 on June 30, 2021. The debt issue costs were 1500. interest
is paid semiannually on December 31 and June 30. one year from the
issue date (July 1, 2022). the corporation exercised its call
privilege and retired the bonds for 395000. the corporation uses
the straight-line method both to determine interest expense and to
amortize debt issue costs.
Debt issue costs; issuance; expensing; early extinguishment; straight-line interest Cupola Fan Corporation issued 10%, $400,000, 10-year...
Debt issue costs; issuance; expensing; early extinguishment;
straight-line interest
Cupola Fan Corporation issued 10%, $400,000, 10-year bonds for
$385,000 on June 30, 2016. Debt issue costs were $1,500. Interest
is paid semiannually on December 31 and June 30. One year from the
issue date (July 1, 2017), the corporation exercised its call
privilege and retired the bonds for $395,000. The corporation uses
the straight-line method both to determine interest expense and to
amortize debt issue costs.
Required:
1. Prepare the...
Debt issue costs; issuance; expensing; early extinguishment; straight-line interest Cupola Fan Corporation issued 10%, $400,000, 10-year...
Debt issue costs; issuance; expensing; early extinguishment;
straight-line interest
Cupola Fan Corporation issued 10%, $400,000, 10-year bonds for
$385,000 on June 30, 2016. Debt issue costs were $1,500. Interest
is paid semiannually on December 31 and June 30. One year from the
issue date (July 1, 2017), the corporation exercised its call
privilege and retired the bonds for $395,000. The corporation uses
the straight-line method both to determine interest expense and to
amortize debt issue costs.
Required:
1. Prepare the...
During its first year of operations, Cupola Fan Corporation issued 37,000 of $1 par Class B...
During its first year of operations, Cupola Fan Corporation
issued 37,000 of $1 par Class B shares for $420,000 on June 30,
2018. Share issue costs were $2,200. One year from the issue date
(July 1, 2019), the corporation retired 10% of the shares for
$43,000.
Required:
1. to 4. Prepare the journal entry to record the
issuance of the shares, the declaration of a $2.70 per share
dividend on December 1, 2018, the payment of the dividend on
December...
Appling Enterprises issued 10% bonds with a face amount of $540,000 on January 1, 2018. The...
Appling Enterprises issued 10% bonds with a face amount of
$540,000 on January 1, 2018. The bonds sold for $496,675 and mature
in 2037 (20 years). For bonds of similar risk and maturity the
market yield was 11%. Interest is paid semiannually on June 30 and
December 31. Appling determines interest expense at the effective
rate. Appling elected the option to report these bonds at their
fair value. The fair values of the bonds at the end of each quarter...
On June 30, $185,000 of 5-year, 10% Orbit bonds are issued at $171,383 to yield a...
On June 30, $185,000 of 5-year, 10% Orbit bonds are issued at
$171,383 to yield a market interest rate of 12%. Interest is
payable semi-annually each June 30 and December 31.
(a)
Record the purchase of these bonds on June 30 and the receipt of
the first interest payment on December 31 on the books of the
investor assuming the bonds are to be held to maturity.
(Credit account titles are automatically indented when
the amount is entered. Do not...
Madison Corporation is authorized to issue $500,000 of 5-year bonds dated June 30, 2016, with a...
Madison Corporation is authorized to issue $500,000 of 5-year
bonds dated June 30, 2016, with a stated rate of interest of 11%.
Interest on the bonds is payable semiannually, and the bonds are
sold on June 30, 2016.
Required:
Determine the proceeds that the company will receive if it sells
the following: (Click here to access the tables to use with this
exercise and round your answers to two decimal places, if
necessary.)
1. The bonds to yield 12%
$...
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