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28 Sep 2019
Please show the work.
Presented below are selected transactions on the books ofSimonson Corporation.
May 1, 2014 Bonds payable with a par value of $934,800, which are datedJanuary 1, 2014, are sold at 105 plus accrued interest. They arecoupon bonds, bear interest at 11% (payable annually at January 1),and mature January 1, 2024. (Use interest expense account foraccrued interest.) Dec. 31 Adjusting entries are made to record the accrued interest onthe bonds, and the amortization of the proper amount of premium.(Use straight-line amortization.) Jan. 1, 2015 Interest on the bonds is paid. April 1 Bonds with par value of $365,500 are called at 102 plus accruedinterest, and redeemed. (Bond premium is to be amortized only atthe end of each year.) Dec. 31 Adjusting entries are made to record the accrued interest onthe bonds, and the proper amount of premium amortized.
Prepare journal entries for the transactions above.
Please show the work.
Presented below are selected transactions on the books ofSimonson Corporation.
| May 1, 2014 | Bonds payable with a par value of $934,800, which are datedJanuary 1, 2014, are sold at 105 plus accrued interest. They arecoupon bonds, bear interest at 11% (payable annually at January 1),and mature January 1, 2024. (Use interest expense account foraccrued interest.) | |
| Dec. 31 | Adjusting entries are made to record the accrued interest onthe bonds, and the amortization of the proper amount of premium.(Use straight-line amortization.) | |
| Jan. 1, 2015 | Interest on the bonds is paid. | |
| April 1 | Bonds with par value of $365,500 are called at 102 plus accruedinterest, and redeemed. (Bond premium is to be amortized only atthe end of each year.) | |
| Dec. 31 | Adjusting entries are made to record the accrued interest onthe bonds, and the proper amount of premium amortized. |
Prepare journal entries for the transactions above.
Hubert KochLv2
28 Sep 2019
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Problem 14-6
Presented below are selected transactions on the books of SplishCorporation.
| May 1, 2017 | Bonds payable with a par value of $856,800, which are datedJanuary 1, 2017, are sold at 105 plus accrued interest. They arecoupon bonds, bear interest at 12% (payable annually at January 1),and mature January 1, 2027. (Use interest expense account foraccrued interest.) | |
| Dec. 31 | Adjusting entries are made to record the accrued interest onthe bonds, and the amortization of the proper amount of premium.(Use straight-line amortization.) | |
| Jan. 1, 2018 | Interest on the bonds is paid. | |
| April 1 | Bonds with par value of $342,720 are called at 102 plus accruedinterest, and redeemed. (Bond premium is to be amortized only atthe end of each year.) | |
| Dec. 31 | Adjusting entries are made to record the accrued interest onthe bonds, and the proper amount of premium amortized. |
Prepare journal entries for the transactions above.(Round intermediate calculations to 6 decimal places,e.g. 1.251247 and final answers to 0 decimal places, e.g. 38,548.If no entry is required, select "No Entry" for the account titlesand enter 0 for the amounts. Credit account titles areautomatically indented when amount is entered. Do not indentmanually.)
| Manilow Company issued $497,000, 7%, 20-year bonds on January 1, 2014, at 102. Interest is payable semiannually on July 1 and January 1. Manilow uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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