Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Almeda Inc., whose fiscal year is the calendar year: Year 1
Entries for Bonds Payable and Installment Note Transactions
The following transactions were completed by Almeda Inc., whose fiscal year is the calendar year:
Year
July Issued $ of year, callable bonds dated July Year at a market effective rate of receiving cash of $ Interest is payable semiannually on December and June
Oct. Borrowed $ by issuing a sixyear, installment note to Main Street Bank. The note requires annual payments of $ with the first payment occurring on September Year
Dec. Accrued $ of interest on the installment note. The interest is payable on the date of the next installment note payment.
Dec. Paid the semiannual interest on the bonds. The bond premium amortization of $ is combined with the semiannual interest payment.
Year
June Paid the semiannual interest on the bonds. The bond premium amortization of $ is combined with the semiannual interest payment.
Sept. Paid the annual payment on the note, which consisted of interest of $ and principal of $
Dec. Accrued $ of interest on the installment note. The interest is payable on the date of the next installment note payment.
Dec. Paid the semiannual interest on the bonds. The bond premium amortization of $ is combined with the semiannual interest payment.
Year
June Recorded the redemption of the bonds, which were called at The balance in the bond premium account is $ after payment of interest and amortization of premium have been recorded. Record the redemption only.
Sept. Paid the second annual payment on the note, which consisted of interest of $ and principal of $
Required:
Journalize the entries to record the foregoing transactions in chronological order. If an amount box does not require an entry, leave it blank. When required, round amounts to the nearest dollar.
Date Account Debit Credit
Year
July
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Oct.
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Dec.
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Dec.
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Year
June
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Sept.
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Dec.
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Dec.
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Year
June
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Sept.
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
fill in the blank
Indicate the amount of the interest expense in a Year and b Year
a Year $fill in the blank
b Year $fill in the blank
Determine the carrying amount of the bonds as of December Year
$fill in the blank
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