) Assume on January 1, 2021, after paying interest, that Swifty Corp. calls bonds having a face value of $860,000. The call price is 102. Record the redemption of the bonds.
(d) Prepare the adjusting entry at December 31, 2018, to amortize bond discount and to accrue interest on the remaining bonds.
Problem 15-07A a-d (Part Level Submission) The following is taken from the Pharoah Company balance sheet. Pharoah Company Balance Sheet (partial) December 31, 2020 Current Liabilities Interest payable (for 12 months from January 1 to December 31) $203,000 Long-term Liabilities Bonds payable, 7 % due January 1 , 2028 $2,900,000 189,000 $3,089,000 Add: Premium on bonds payable Interest is payable annually on January 1. The bonds are callable on any annual interest date. Pharoah uses straight-line amortization for any bond premium or discount. From December 31, 2020, the bonds will be outstanding for an additional 10 years (120 months) (a) Your answer is correct. Journalize the payment of bond interest on January 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent man ually.) Date Accouat Titles and Explanation Debit Credit Jan. 1, 2021 Interest Payable 203000 203000 Cash Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 2 of 15 used (b) Your answer is partially correct. Try again. Prepare the entry to amortize bond premium and to accrue the interest due on December 31, 20211. (Credit account titles are automatically (b) Your answer is partially correct. Try again Prepare the entry to amortize bond premium and to accrue the interest due on December 31, 2021. (Credit account tities are automatically indented when amount is entered. Do not indent manually.) Account Titles and Esplanation Date Debit Credit Dec. 31, 2021 Cash Bonds Payable Premium on Bonds Payable Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. BMIT ANSW Attempts: 1 of 15 used WER SAVE FOR LATER (c) Tho aate af thic auction muct ho comnlotedin arda Thic nat will ho