Question
2016 Sep. 1 Purchased equipment costing $ 270,000 by issuing a nine -year, 7 % note payable. The note requires annual principal payments of $
2016 | |
Sep. |
1 | Purchased equipment costing $ 270,000 |
by issuing a nine-year, 7% note payable. The note requires annual principal payments of $ 30,000 plus interest each Sep. 1
| |
Dec. 31 | Accrued interest on the note payable. |
2017 |
Sep. 1 Paid the first installment on the note. |
Dec. 31 |
Video Productions' total liabilities on December 31, 2017
Requirement 1. Journalize the transactions for the company. Sep. 1, 2016 : Purchased equipment costing $ 270, 000 by issuing a nine year, 7% note payable. The note requires annual principal payments of $30,000 plus interest each Sep.1. (Record debits first, then credits. Select explanations on the last line of the journal entry.) ________________________________________________________________ ________________________________________________________________ On June 30, Driftwood Limited issues 7 %, 20-year bonds payable with a face value of $ 70,000 The bonds are issued at 96 and pay interest on June 30 and December 31. Requirements 1. Journalize the issuance of the bonds on June 30. 2. Journalize the semiannual interest payment and amortization of the bond discount on December 31. (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry.) _________________________________________________________________________ _____________________________________________________________________ .On January 1, 2016 , Alan 12 %, 15 -year bonds payable with a face value of $ 230,000 . The bonds are issued at 103 Requirements
(Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry.) Requirement 1. Journalize the issuance of the bonds on January 1, 2016 .
_____________________________________________________________________________________ _______________________________________________________________________________________ Pediatric Dispensary borrowed $ 600,000 on January 2,2016 , by issuing a 15 % serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2,2017 . Complete the missing information. Assume bonds are issued at face value. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell.) ________________________________________________________________ ___________________________________________________________________
On December 31, , when the market interest rate is 14%,Vincent Realty issues $ 500,000 of 15.25 %,10-year bonds payable. The bonds pay interest semiannually. Vincent Realty received $ 532,896 in cash at issuance. Requirements
Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round all numbers to the nearest whole dollar.)
Requirement 1. Journalize the issuance of the bonds on June 30.
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