Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,145,000. As a result of declining interest rates,the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of$1,039,000.Required:Record the retirement of the bonds, using a premium account.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listJournal entry worksheet1Record the retirement of the bonds, using a premium account.Note: Enter debits before credits.Transaction1General JournalDebitCreditView general journalRecord entryClear entry

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Answered: Several years ago, Cyclop Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,145,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,039,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: Record the retirement of the bonds, using a premium account.
Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,070,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,035,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) I'm unsure how to calculate loss on bond call. Thanks. Required: Record the retirement of the bonds, using a premium account.
Pizza Pier retires its 7% bonds for $70,800 before their scheduled maturity. At the time, the bonds have a face value of $72,800 carrying value of $74,965.Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Record the early retirement of the bonds. Transaction General Journal Debit Credit 1
Premium Pizza retires its 5% bonds for $64,000 before their scheduled maturity. At the time, the bonds have a face amount of $61,800 and a carrying value of $66,380. Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.). How do you figure out the "gain"?
Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. 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.) Account Titles and Explanation Cash (a2) Discount on Bonds Payable Bonds Payable * Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing 177310 Debit 489600 20400 Credit 510000
Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. 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.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing eTextbook and Media List of Accounts - Your answer is partially correct. Account Titles and Explanation Interest Expense (DZ). Premium on Bonds Payable $ Interest Payable Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Total cost of borrowing Debit eTextbook and Media $ 489600 Debit 20400 Compute the total cost of borrowing for these bonds, assuming the bonds were…
J Marigold, Inc., purchased $372,000 of its bonds at 95 on June 30, 2020, and immediately retired them. The carrying value of the bonds on the retirement date was $360,000. The bonds pay annual interest and the interest payment due on June 30, 2020, has been made and recorded. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30
Sheridan Company issued $501,000, 8%, 30-year bonds on January 1, 2025, at 102. Interest is payable annually on January 1. Sheridan uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) (a) (b) (c) (d) No. (a) (b) (c) (d) The issuance of the bonds. The accrual of interest and the premium amortization on December 31, 2025. The payment of interest on January 1, 2026. The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. Date < Account Titles and Explanation Debit Ci
Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,045,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,010,000. Record the retirement of the bonds, using a premium account.
Sandhill Co. sold $5,600,000, 7%, 15-year bonds on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on December 31. The bonds were sold at 97. Prepare the journal entry to record the issuance of the bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Jan. 1, 2025 eTextbook and Media eTextbook 1 e Textbook 2 Video List of Accounts eTextbook and Media Debit At December 31, 2025, $11,200 of the bond discount had been amortized. Show the long-term liability balance sheet presentation of the bond liability at December 31, 2025. SANDHILL CO. Balance Sheet (Partial) $ Credit Assistance Used Accictancocod
Premium Pizza retires its 5% bonds for $64,000 before their scheduled maturity. At the time, the bonds have a face amount of $61,800 and a carrying value of $66,380. Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Crane Corporation issued $402,000 of 4%, 10-year bonds on January 1, 2024, at face value. Interest is payable annually on January 1, 2025. (a) Prepare the journal entry to record the issuance of the bonds. (List debit entry before credit entry. 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.) Date Jan. 1, 2024 Account Titles List of Accounts Save for Later Debit Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. Credit Submit Answer

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