E15-13

a Non-Current Liabilities 820 CHAPTER 1 Prepare entries for bond 115-13 Two independent situations redemption LO 4 AP S130000 face value, 12% bonds on June 30, 2017, at 102 was $117.500 The bonds pay annual interest, and the in redeemed t. Longhine Corporation due on June 30 2017, has been made and 2. on lune Tastove Inc redeemed SS000 face value, i25% bonds on June 30, 2017,at98. The bonds the edemption date was $151,000 The boods pay anmual interest, and the interest payment du te 2017, has been made and recorded For each situation above, prepare the appropriate journal entry for the redemption of the bonds. E15-14 On lanuary l, 2017, Chiltoa Ltd. issued $500,000 of 5%, 5-year bonds. The bonds were year end s December 3. On lanury 1, 2019 immediately af after making nd Prepare bond interest and (LO3, 4 AP market in rest rate of %Chito econding the semi-anocal interest payment, Chilton redeemed the bonds. A partial bond is presented below entries. Bond Amortized Semi-Annual Interest Interest Interest Period Payment Expense Amortization Jan. 1, 2017 uly 1,2017 $12,500 $14,360 Cost $478,674 $1.860 1,916 1,974 2,033 480,534 482,450 484,424 486,457 12,500 14,416 lan. 1, 2018 July 1, 2018 12.50014,474 lan. 1, 201912,50014,533 a) Prepare the journal entry to record the payment of interest on July 1, 2017 b) Prepare the journal entry to accrue the interest expense on December 31, 2017. (c) Prepare the journal entry to record the payment of interest on January 1,2018. (d) Prepare the journal entry to record the redemption of the bonds January 1, 2019. e) Prepare the journal entry to record the redemption of the bonds assuming they were redeemed at 96. Record mortgage note payable. (LO 5) AP E15 15 Cove Resort Co pissued a 20-year 7%,$240 000 mortgage note payable to finance the construct new building on December 31, 2017. The terms provide for semi-annual instalment payments on June so December 31. Prepare the kournal entrles to rcod the mortgage note payable and the first two instalment payments the payment is: (a) a fixed principal payment of $6,000. (b) a blended payment of $11,239