E10-7 (Algo) Preparing Journal Entries to Record Issuance of Bonds and Payment of Interest [LO 10-3] On January 1. Applied Technologies Corporation (ATC) issued $530,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 10 percent. When the bonds were Issued, the market interest rate was 10 percent. The bonds pay interest once per year on December 31 . Required: 1. Determine the price at which the bonds were issued and the amount that ATC received at issuance. 2. \& 3. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31 assuming no interest has been accrued earlier in the year. Complete this question by entering your answers in the tabs below. Determine the price at which the bonds were issued and the amount that ATC recelved at issuance. Prepare the required journal entries to record the bond issuance and the first interest payment on De has been accrued earlier in the year. (If no entry is required for a transaction/event, select "No Journ account field.) Journal entry worksheet Record the issuance of bonds of $530,000. Note: Enter debits before credits. E10-8 (Algo) Preparing Journal Entries to Record Issuance of Bonds at Face Value, Payment of Interest, and Early Retirement [LO 10-3] On January 1, Innovative Solutions, Incorporated, issued $110.000 in bonds at face value. The bonds have a stated interest rate of 7 percent. The bonds mature in 10 years and pay interest once per year on December 31 . Required: 1, 2 \& 3. Prepare the required journal entries to record the bond issuance, interest payment on December 31 , early retirement of the bonds. Assume the bonds were retired immedlately after the first interest payment at a quoted price of 102 . (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 23 Record the issuance of bonds of $110,000 at face value. Note: Enter debits before credits. Journal entry worksheet Record the issuance of bonds of $110,000 at face value. Note: Enter debits before credits. Journal entry worksheet Record the interest payment on December 31. Note: Enter debits before credits. Journal entry worksheet Record the retirement of the bonds at a quoted price of 102 . Note: Enter debits before credits. PA10-3 (Algo) Recording and Reporting Current Liabilities [LO 10-2] Lakeview Company completed the following two transactions. The annual accounting period ends December 31. a. On December 31, calculated the payroll, which indicates gross earnings for wages ($104,000), payroll deductions for income tax ($10,400), payroll deductions for FiCA ($7,800), payroll deductions for American Cancer Soclety ($3,900), employer contributions for FiCA (matching), and state and federal unemployment taxes (\$910). Employees were paid in cash, but payments for the corresponding payroll deductions have not yet been made and employer taxes have not yet been recorded. b. Collected rent revenue of $6.450 on December to for office space that Lakeview rented to another business. The rent collected wos for 30 days from December 11 to January 10 and was credited in full to Deferred Revenue. Required: 1. \& 2. Prepare the journal entries to record payroll on December 31, the collection of rent on December 10 and adjusting journal entry on December 31. 3. Show how any of the liabilities related to these items should be reported on the company's balance sheet at December 31. Journal entry worksheet Record the wages expense, including payroll deductions. Note: Enter debits before credits. Journal entry worksheet Note: Enter debits before credits. Journal entry worksheet Record the collection of 30 days' rent in advance amounting to $6,450. Note; Enter debits before credits. Journal entry worksheet 1 Record the adjusting entry relating to rent. Note: Enter debits before credits. Show how any of the liabilities related to these items should be reported on the com 31. (Do not round intermediate calculations.)
