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I've worked on some of these myself but I'm not able to get them. Also I have very limited credits so I am not able
I've worked on some of these myself but I'm not able to get them. Also I have very limited credits so I am not able to raise my price anymore than its already set at and I can not increase the deadline either. Sorry.
Question 1 Randle Inc. issues $240,000, 10-year, 8% bonds at 96. Prepare the journal entry to record the sale of these bonds on March 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Mar. 1 Account Titles and Explanation Debit Credit Cash Discount on Bond Bonds Payable Question 2 Meera Corporation issued 2,400, 7%, 5-year, $1,000 bonds dated January 1, 2017, at 100. Interest is paid each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2017 Prepare the adjusting journal entry on December 31, 2017, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Date Debit Credit December 31, 2017 Prepare the journal entry on January 1, 2018, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Debit Credit Explanation January 1, 2018 Question 3 Sweetwood Company issues $6,000,000, 10-year, 10% bonds at 98, with interest payable annually on January 1. The straight-line method is used to amortize bond discount. Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Question 4 On January 1, 2017, Klosterman Company issued $430,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Date Debit Credit Dec. 31, 2017 Prepare the journal entry to record the payment of interest on January 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2018 Question 5 On January 1, 2017, Forrester Company issued $255,000, 9%, 5-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Debit Credit Explanation Dec. 31, 2017 Prepare the journal entry to record the payment of interest on January 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2018 Question 6 Whitmore Company issued $610,000 of 5-year, 5% bonds at 95 on January 1, 2017. The bonds pay interest annually. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Compute the total cost of borrowing for these bonds. $ Total cost of borrowing Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 104. $ Total cost of borrowing Question 7 The adjusted trial balance for Karr Farm Corporation at the end of the current year contained the following accounts. Interest Payable Lease Liability Bonds Payable, due 2022 Premium on Bonds Payable $9,500 87,000 177,000 34,000 Prepare the long-term liabilities section of the balance sheet. (Enter account name only and do not provide descriptive information.) Karr Farm Corporation Balance Sheet (Partial) Long-termLiabilities $ $ : $ Total Long-termLiabilities Question 8 On May 1, 2017, Herron Corp. issued $660,000, 8%, 5-year bonds at face value. The bonds were dated May 1, 2017, and pay interest annually on May 1. Financial statements are prepared annually on December 31. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 1, 2017 Prepare the adjusting entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675.) Account Titles and Explanation Date Debit Credit Dec. 31, 2017 Show the balance sheet presentation on December 31, 2017. (Enter account name only and do not provide descriptive information. Round answers to 0 decimal places, e.g. 5,675.) Herron Corp. Balance Sheet (Partial) December 31, 2017 $ $ Prepare the journal entry to record payment of interest on May 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675.) Date Account Titles and Explanation Debit Credit May 1, 2018 Prepare the adjusting entry to record the accrual of interest on December 31, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675.) Account Titles and Explanation Date Debit Credit Dec. 31, 2018 Assume that on January 1, 2019, Herron pays the accrual bond interest and calls the bonds. The call price is 105. Record the payment of interest and redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675.) Date Account Titles and Explanation Debit Credit Jan. 1, 2019 (To record payment of interest) Jan. 1, 2019 (To record redemption of the bonds) Question 9 The following section is taken from Mareska's balance sheet at December 31, 2017. Current liabilities Interest payable $51,500 Long-term liabilities Bonds payable (8%, due January 1, 2021) 550,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Journalize the payment of the bond interest on January 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2018 Assume that on January 1, 2018, after paying interest, Mareska calls bonds having a face value of $240,000. The call price is 101. Record the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2018 Prepare the adjusting entry on December 31, 2018, to accrue the interest on the remaining bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2018 Question 10 Presented below are three different lease transactions that occurred for Ruggiero Inc. in 2017. Assume that all lease contracts start on January 1, 2017. In no case does Ruggiero receive title to the properties leased during or at the end of the lease term. Lessor Type of property Yearly rental Lease term Estimated economic life Fair value of lease asset Present value of the lease rental payments Bargain purchase option Judson Delivery Hester Co. Gunselman Auto Computer $6,300 6 years 7 years $30,000 $28,500 None Delivery equipment $5,500 4 years 7 years $21,500 $15,500 None Automobile $5,000 2 years 5 years $13,500 $8,900 None How should the lease transaction for Hester Co. be recorded in 2017? (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit How should the lease transaction for Judson Delivery be recorded on January 1, 2017? (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Question 11 Paris Electric sold $3,800,000, 8%, 10-year bonds on January 1, 2017. The bonds were dated January 1 and pay interest annually on January 1. Paris Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Jan. 1, 2017 Account Titles and Explanation Cash Debit 3,914,000 Credit Premiumon Bond 114,000 Bonds Payable 3,800,000 Prepare a bond premium amortization schedule for the first 4 interest periods. Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded Premium Amortization Unamortized Premium Bond Carrying Value $ Issue date $ 1 $ $ 114,000 3,914,000 102,600 3,902,600 $ 304,000 292,600 11,400 2 304,000 292,600 11,400 91,200 3,891,200 3 304,000 292,600 11,400 79,800 3,879,800 4 304,000 292,600 11,400 68,400 3,869,400 Prepare the journal entries for interest and the amortization of the premium in 2017 and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Dec. 31, 2017 Dec. 31, 2018 Account Titles and Explanation Debit Credit Show the balance sheet presentation of the bond liability at December 31, 2018. (Enter account name only and do not provide descriptive information.) Paris Electric Balance Sheet (Partial) December 31, 2018 $ $ $Step by Step Solution
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