On March 1, 2020, JenStar Hydroponics Inc. issued at par an $80,000, 6%, three-year bond. Interest is

Question:

On March 1, 2020, JenStar Hydroponics Inc. issued at par an $80,000, 6%, three-year bond. Interest is to be paid quarterly beginning May 31, 2020. JenStar?s year-end is July 31. A partial payment schedule is shown below:

a. Record the issuance of the bond on March 1, 2020.

b. Record the payment of interest on May 31, 2020.

c. Record the accrual of bond interest on July 31, 2020, JenStar?s year-end, and the subsequent payment of interest on August 31, 2020.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

See More Books

Question Posted: Dec 17, 2019 12:27 PM

See More Questions

Extra Gold Corporation had a $1,270,000, 6% bond available for issue on September 1, 2020. Interest is to be paid quarterly beginning November 30. All of the bonds were issued at par on October 1....
On May 10, Century Realty Inc. issued for cash 90,000 shares of no-par common stock (with a stated value of $30) at $42. On September 3, Century Realty Inc. issued at par value 36,000 shares of...
On August 26, Mountain Realty Inc. issued for cash 120,000 shares of no-par common stock (with a stated value of $5) at $8. On October 1, Mountain Realty Inc. issued at par value 40,000 shares of...
Starting with the general linear form (16.2.1), verify the interpolation relations (16.2.4) and (16.2.5). Equation 16.2.1 Equation 16.2.4 Equation 16.2.5 u(x,y) = C+Ccx + c3y
Find the next larger permutation in lexicographic order after each of these permutations. a) 1432 b) 54123 c) 12453 d) 45231 e) 6714235 f) 31528764
Patent Infringement. John and Andrew Doney invented a hardbearing device for balancing rotors. Although they registered their invention with the U.S. Patent and Trademark Offi ce, it was never used...
Appendix 9B. Some claim that an objective of allocating the costs of long-lived assets to future periods is to provide funds for the future replacement of those assets. Evaluate this statement,...
The gross earnings of the factory workers for Larkin Company during the month of January are $76,000. The employers payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by...
cydia without How to add memo Apple iPod Touch melurbished iPod. K Cart
Richard chooses technique 0 and 2 requiring 10+10-20 efforts and provising 10+11=21 benefits. Hence, 21 is returned as the output Example 2: input1: 3 input2: (10,10,10,10) input3: (10,11,12,15)...
Curtis Ltd. issued $100,000 of 8% bonds at face value on October 1, 2020. Interest is paid each March 31 and September 30. If Curtiss tax rate is 40%, what is the annual after-tax borrowing cost (a)...
Purity Vegetable Corp. issued $200,000 of 6% bonds on November 1, 2020, at par value. The bonds were dated October 1, 2020, and pay interest each April 1 and October 1. Record the issue of the bonds...
Obtaining uniform random numbers as instructed at the beginning of the Problems section, use the inverse transformation method and the table of the normal distribution given in Appendix 5 (with...
Benicio wants to make sure that the Sales table does not contain any duplicate records, which would make any sales analysis incorrect. Identify and remove duplicate records in the Sales table as...
University Car Wash purchased new soap dispensing equipment that cost $261,000 including installation. The company estimates that the equipment will have a residual value of $27,000. University Car...
What volumetric airflow rate (Qa) is required to maintain a G value of 500s-1 in a basin that is 2.75 m deep and provides a liquid detention time of 5 min? Perform the exercise for water temperatures...
Read this article, then answer the following questions: 1- Description of Instrument: a. Title of instrument, author(s), publication date 2/18/24, 5:43 PM Abuse Risk Inventory for Women: EBSCOhost...
Suppose that there is a magnetic field B(x, y, z) = x2 filling a 3D space. The coordinates are set up as a Cartesian coordinate system with = 2. For all the discussions below, ignore the units. a)...
The catastrophic Exxon Valdez oil spill, which arguably might have resulted because of the alcoholism of one of the ships officers, occurred in 1989. As a consequence, Exxon Corporation adopted a...
If M = 7, s = 2, and X = 9.5, what is z?
The following account information appeared on Ucore Sales? adjusted trial balance as of December 31, 2020. The accounts are listed in alphabetical order. Required 1. Prepare a classified...
FOB destination is a term used to indicate the following: a. Ownership of goods transfers to the buyer when goods reach the buyers place of business. b. Ownership of goods transfers to the buyer when...
The following amounts appeared on Davison Companys adjusted trial balance as of October 31, 2020, the end of its fiscal year: Required 1. Prepare a classified multiple-step income statement for...
Quick, Inc. has 50 bonds outstanding with a market value of $1,000 each and with a yield to maturity of 6.8% and an annual coupon rate of 6%. Tax rate is 17%. The firm also has 5,000 shares of common...
Three years ago Erika spent $1000 to purchase a 12-year, $1000 par-value T-bond with a 1.5% annual coupon. Today the bond's YTM 1%. If Ishmael holds this bond to maturity, what internal rate of...
(c) Briefly explain the over-investment problem from the perspective of the agency costs between debtholders and equity holders. (2 marks) (d) Explain the benefit of paying the dividend, from the...

On March 1, 2020, JenStar Hydroponics Inc. issued at par an $80,000, 6%, three-year bond. Interest is

Question:

Cash Carrying Period Ending Interest Paid Value $80,000 Mar. 1/20. ....... May 31/20. Aug. 31/20 $ 1,200 80,000 .... 1,200 80,000 Aug. 31/22. 1,200 80,000 ..... 1,200 Nov. 30/22 80,000 1,200 Feb. 28/23 80,000 .... $14,400 Total

Step by Step Answer:

a 2020 Mar 1 Cash 80000 Bonds Payable 80000 Record issuance of bon...View the full answer

Fundamental Accounting Principles Volume II

Students also viewed these Business questions