| Bonds payable with a par value of $700,000, which are dated January 1, 2020, are sold at 108 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature on January 1, 2030. (Use an interest expense account for accrued interest.) | |
| Adjusting entries are made to record the accrued interest on the bonds and the amortization of the proper amount of premium. (Use straight-line amortization.) | |
| Interest on the bonds is paid. | |
| Par value bonds of $490,000 are repurchased at 104 plus accrued interest and are retired. (Bond premium is to be amortized only at the end of each year.) | |
| Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. | |
Assume that Bramble follows ASPE. Prepare the journal entries for the transactions above.
Thanks!!
Date May 1, 2020 Dec 31, 2020 Jan. 1, 2021 Jan. 1, 2021 Jan. 1, 2021 Apr. 1, 2021 Dec. 31, 2021 Dec. 31, 2021 Account Titles and Explanation (To record accrued interest expense) (To amortize the premium) (To amortize the premium) (To record reacquisition of bonds) (To record accrued interest expense) (To amortize the premium) Debit Credit List of Accounts Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accumulated Depreciation - Machinery Allowance for Doubtful Accounts Bad Debt Expense Bond Interest Payable Bonds Payable Buildings Cash Common Shares Cost of Goods Sold Depreciation Expense Equipment FV-NI Investments FV-OCI Investments Gain on Disposal of Buildings Gain on Disposal of Equipment Gain on Disposal of Machinery Gain on Redemption of Bonds Gain on Restructuring of Debt Gain on Sale of Investments Interest Expense Interest Income Interest Payable Interest Receivable Inventory Investment Property Land Loss on Disposal of Machinery Loss on Redemption of Bands Loss on Retirement of Bonds Loss on Restructuring of Debt Loss on Sale of Investments Machinery Modification Gain or Loss Mortgage Payable No Entry Notes Payable Notes Receivable Sales Revenue Unearned Revenue Unrealized Gain or Loss Unrealized Gain or Loss-OCI Assistance Used