Question
1.) Precision Optical issued 360 bonds at 96 on January 1 st 2020 with a stated interest rate of 4.5%. These bonds are set to
1.) Precision Optical issued 360 bonds at 96 on January 1st 2020 with a stated interest rate of 4.5%. These bonds are set to mature in 2 years and pay interest each December 31st. The company follows the straight-line method for bond amortization.
Prepare ALL necessary journal entries for Precision Optical for 1/1/2020 (6 points)
(MULTIPLE CHOICE)
a.) DR Cash 345,600
DR Discount on Bonds Payable 14,400
CR Bonds Payable 360,000
B.) DR Cash 34,560
DR Discount on Bonds Payable 1,440
CR Bonds Payable 36,000
c.) DR Bonds Payable 345,600
DR Discount on Bonds Payable 14,400
CR Cash 360,000
d.) DR Bonds Payable 34,560
DR Discount on Bonds Payable 1,440
CR Cash 36,000
e.) DR Cash 360,000
CR Discount on Bonds Payable 14,400
CR Bonds Payable 345,600
__________________________________________________________________________________________
2.) (Choose one, Multiple choice)
Precision Optical issued 360 bonds at 96 on January 1st 2020 with a stated interest rate of 4.5%. These bonds are set to mature in 2 years and pay interest each December 31st. The company follows the straight-line method for bond amortization.
Prepare ALL necessary journal entries for Precision Optical for 12/31/2020.
Question 12 options:
| |
| |
| |
| |
|
______________________________________________________________________________
3.) (MULTIPLE CHOICE)
Precision Optical issued 360 bonds at 96 on January 1st 2020 with a stated interest rate of 4.5%. These bonds are set to mature in 2 years and pay interest each December 31st. The company follows the straight-line method for bond amortization.
Prepare ALL necessary journal entries for Precision Optical for 12/31/2021 (8 points)
A.) DR Interest Expense 2,340
CR Cash 1,620
CR Discount on Bonds Payable 720
DR Bonds Payable 36,000
CR Cash 36,000
B.) DR Interest Expense 23,400
CR Cash 16,200
CR Discount on Bonds Payable 7,200
DR Bonds Payable 360,000
CR Cash 360,000
C.) DR Cash 23,400
CR Interest Expense 16,200
CR Discount on Bonds Payable 7,200
DR Cash 360,000
CR Bonds Payable 360,000
D.) DR Cash 2,340
CR Interest Expense 16,20
CR Discount on Bonds Payable 720
DR Cash 36,000
CR Bonds Payable 36,000
E.) DR Interest Expense 16,200
DR Discount on Bonds Payable 7,200
CR Cash 23,400
DR Bonds Payable 36,000
CR Cash 36,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started