10-6a to 10-7a

P10-6A The following section is taken from Hardesty's balance sheet at December 31, Prepare jourmal extris o 2018. Probiems Set A 501 Current liabilities Interest payable record interest payments and redemption of bonds Long-term liabilities $ 40,000 500,000 Bonds payable (8%, due January 1, 2022) Interest is payable annually on January 1. The bonds are callable on any annual interest date Instructions (a) Journalize the payment of the bond interest on January 1, 2019. (b) Assume that on January 1, 2019, after paying interest, Hardesty calls bonds having a (b) Loss $6,000 face value of $200,000. The call price is 103. Record the redemption of the bonds. (e) Prepare the adjusting entry on December 31, 2019, to accrue the interest on the remaining bonds. P10-7A Talkington Electronics issues a $400,000, 800, 10-year mortgage note on Prepare installment payments December 31, 2018. The proceeds from the note are to be used in financing a new research schedule and jounal entries laboratory. The terms of the note provide for annual installment payments, exclusive of for a mortgage not real estate taxes and insurance, of $59,612. Payments are due on December 31. Instructions (a) Prepare an insta (b) Prepare the entries for (1) the loan and (c) Show how the total mortgage liability should be reported on the balance sheetat e payable. (LO 4, 5) (b) December 31 debit Mortgage Payabe 527,612 llment payments schedule for the first 4 years. ies for (1) the loan and (2) the first installment payment $29,821 December 31, 2019. from an adjusted trial balance. halance of Ubben Company for the year ended December 31, Preur LO