Answered step by step
Verified Expert Solution
Question
1 Approved Answer
#9 Entries for bonds payoble, including bond redemption The following transactions were completed by Montague Inc. whose fiscal year is the calendar year: 2011 July
#9 Entries for bonds payoble, including bond redemption The following transactions were completed by Montague Inc. whose fiscal year is the calendar year: 2011 July 1. Issued $55,000,000 of 10 -year, 9% callable bonds dated July 1, 20v1, at a market (effective) rate of 7\%t, receiving cash of $62,817,040, Interest is paryable semiannually on December 31 and June 30. December 31. Paid the semiannual interest on the bonds. The bond premium amortization of 9390,852 in combined with the semiannual interest. payrisent. 2092 June 30. Paid the semiannual interest on the bonds. The bond premium amortization of $390.852 is combined with the semiannual interest paymint. December 31. Paid the semiannual interest on the bonds. The bond premium armortization of $390.852 is combined with the semiannual interest. payment. June 30. Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is 36.253 .632 after payment of interest and amortization of premium have been recorded. (Record the redemption only.) 1. Journalize the entries to record the foregoing transactions. If an amount bok does not require an aritr. leave it blank, When required, round amounts to the nearest dollar. 1. Journalize the entries to record the forngoing transactions. If an amount box does not require an entry, leave it blank, When required, round amounts to the nearest dollar. 2. Indicate the amount of the interest expende in (a) 201 and (b) 20k. a. 20y1 b. 202 3. Determine the carrying amount of the bonds as of December 31 . 20r2
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