NOTE:Question 1 and 2 are entirely different and have nothing in common or to share with each other
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When market interest rates were 6%, three companies issued bonds on January 1, 2021. Each company has a December 31 year end and each company issued ponds with a face value of $100,000 that pay interest annually on December 31. Bramble Limited sold its bonds at 100 and offered a coupon interest rate of 6%, while Vaughn Corp. sold its bonds at 96 and offered a coupon interest rate of 5%, and Sheffield Inc. sold its bonds at 108 and offered a 7% coupon interest rate. Record the issue of the bonds by each company on January 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Debit Credit Date Account Titles and Explanation Bramble Limited Jan. 1 Vaughn Corp. Jan. 1 Sheffield Inc. Jan. 1 List of Accounts Prepare the entry that each company would record for the payment of interest on December 31, 2021. (Round answers to o decimal places, e-g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit Bramble Limited Dec. 31 Bramble Limited 1 Dec. 31 Vaughn Corp. Dec. 31 Sheffield Inc. Dec. 31 Determine the balance in each company's Bonds Payable account on December 31, 2021. Balance in Bonds Payable account Bramble Limited $ Vaughn Corp $ Sheffield Inc. $ $ On July 1, 2021. Sanland Satellites Corporation issued $1,800,000 of 10-year, 8% bonds to yield a market interest rate of 7%. The bonds pay semi-annual interest on July 1 and January 1. Sunland has a December 31 year end and records adjusting entries annually, Sunland received $1.927,919 when issuing the bonds Click here to view the factor table. Prepare an amortization table through January 1, 2023 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, o.s. 5.275.) SUNLAND SATELLITES CORPORATION Bond Premium Amortization Semi- annual interest periods Interest Expense to be Recorded Unamortized Premium Interest to be paid Premium Amortization July 1/21 $ Jan. 1/22 5 $ July 1/22 Jan. 1/23 On July 1, 2021, Sunland Satellites Corporation issued $1,800,000 of 10-year, 8% bonds to yield a market interest rate of 7%. The bonds pay semi-arinual interest on July 1 and January 1. Sunland has a December 31 year end and records adjusting entries annually, Sunland received $1.927.919 when issuing the bonds. Click here to view the factor table. Prepare an amortization table through January 1, 2023 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, e.g. 5.275.) SUNLAND SATELLITES CORPORATION Bond Premium Amortization Interest Expense to be Recorded Premium Amortization Unamortized Premium Bond Carrying Amount $ $ $ $ Record the issue of the bonds on July 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, e.3.5,275.) Date Account Titles and Explanation Debit Credit 2021 July 1 List of Accounts Prepare the adjusting entry on December 31, 2021, to accrue the interest on the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, e.3. 5,272.) Date Account Titles and Explanation Debit Credit 2021 Dec. 31 Show the statement of financial position presentation of the liabilities at December 31, 2021. (Round all amounts to the nearest dollar, e.g. 5,275.) SUNLAND SATELLITES CORPORATION Statement of Financial Position (Partial) Current liabilities Non-current liabilities List of Accounts Record the payment of interest on January 1, 2022, and July 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, e.g. 5,275.) Debit Credit Date Account Titles and Explanation 2022 Jan. 1 1 July 1 List of Accounts Prepare the adjusting entry on November 30, 2021, to accrue the interest on the bonds, assuming the company's year end was November 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, e.g. 5,275.) Debit Credit Date Account Titles and Explanation 2021 I Nov. 30 1 ist of Account Record the payment of interest on January 1, 2022, assuming the company's year end was November 30. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 2022 Jan. 1 List of Accounts
