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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

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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 immediately 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 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, required for a transaction/event, select "No Journal Entry Required" in the first account field 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 10 for office space that Lakeview rented to another business. The rent collected was 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 jourrial entry on December 31 , 3. Show how any of the llablities related to these items should be reported on the company's balance sheet at December 31. Complete this question by entering your answers in the tabs below. Prepare the journal entries to record payroll on December 31, the collection of rent on December 10 and adjusting journal entry on 4 December 31. (Do not round intermediate calculations. If no entry is required for a transactionveveot, select "No Joutnal Entry Required" in the first account field.) Journal entry worksheet Record the wages expense, including payroll deductions. Note: Enter debits before credits. Show how any of the liabilities related to these items should be reported on the cor 31. (Do not round intermediate calculations.)

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