On January 1, 2017, Henderson Corporation redeemed $500,000 of bonds at 99. At the time of redemption, the unamortized premium was $15,000. Prepare the corporation’s journal entry to record the reacquisition of the bonds .
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On January 1, 2017, Henderson Corporation redeemed $500,000 of bonds at 99. At the time of redemption, the unamortized premium was $15,000. Prepare the corporation’s
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- Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premiumOn January 1, 2017, Carla Vista Company redeemed $470,000 of bonds at 103. At the time of redemption, the unamortized discount was $16,500 and unamortized bond issue costs were $3,000.Prepare the Carla Vista’s journal entry to record the reacquisition of the bonds.On January 1, 2017, Cullumber Company redeemed $490,000 of bonds at 103. At the time of redemption, the unamortized discount was $16,900 and unamortized bond issue costs were $2,800. Prepare the Cullumber's journal entry to record the reacquisition of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
- On January 1, 2020, Whispering Corporation redeemed $510,000 of bonds at 98. At the time of redemption, the unamortized premium was $15,300.Prepare the corporation’s journal entry to record the reacquisition of the bondsCrane Company redeemed $178,000 face value, 17.5% bonds on June 30, 2022, at 98. The carrying value of the bonds at the redemption date was $190,000. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded. Prepare the appropriate journal entry for the redemption of the bonds.On January 1, 2025, Splish Corporation redeemed $520,000 of bonds at 99. At the time of redemption, the unamortized premium was $15,600. Prepare the corporation's journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
- Novak Corp. redeemed $148,000 face value, 12% bonds on April 30, 2022, at 102. The carrying value of the bonds at the redemption date was $134,500. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. Prepare the appropriate journal entry for the redemption of the bonds.Blue Corporation sold $2,220,000, 7%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Blue 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 2017, assuming that the bonds sold at 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount Dec. 31 enter an account…Stark Ltd sold IDR 6,200,000, 10%, 10-year bonds on January 1, 2019. The bonds were dated January i and paid interest every January 1. Stark Ltd uses the straight-line method to amortize premiums or discounts on its bonds. The bonds were sold at 97. Instructions: 1. Keep a journal to record the issuance of bonds on January 1, 2019 2. Keep a journal to record interest on obligation and amortization in 2019 3. Journalize interest payment on January 1, 2020 4. On January 1, 2021, the company redeems the bonds at 102. Record the settlement of the bonds given that the interest for the previous period has been paid.
- Hasley Company issued $800,000, 11%, 10-year bonds on December 31, 2018, for $730,000. Interest is payable annually on December 31.The Company uses the straight-line method to amortize bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)On January 1, 2020, Larkspur Corporation redeemed $620,000 of bonds at 97. At the time of redemption, the unamortized premium was $18,600. Prepare the corporation’s journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.)On July 1, 2018, ABC Co. issued $6,000,000, 6%, 4-year bonds. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid semiannually on July 1 and January 01. The company uses the effective-interest method of amortization. Required: For ABC Co. answer the following independent requirements: a. Prepare the necessary journal entry on July 1, 2018. b. Assume that the accounting date for ABC Co. is December 31, prepare the necessary journal entry on December 31, 2018. c. Assume that the bond was issued on September 30, 2018, prepare the journal entry on January 01, 2019. d. Assume that the accounting date for ABC Corporation is November 30, prepare the journal entry on November 30, 2018.
