Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On May 1, 2020, Ivanhoe Corp. issued $620,000,6%, 5-year bonds at face value. The bonds were dated May 1, 2020, and pay interest annually on

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On May 1, 2020, Ivanhoe Corp. issued $620,000,6%, 5-year bonds at face value. The bonds were dated May 1, 2020, and pay interest annually on May 1. Financial statements are prepared annually on December 31. (a) Your answer is correct 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 Date May 1 2020 Cash 620000 620000 Bonds Payable (b) Your Answer Correct Answer (Used) Your answer is correct Prepare the adjusting entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Round answers to decimal places, eg. 5,675.) Date Account Titles and Explanation Debit Credit Dec. 31. Interest Expense 24800 2020 Interest Payable 24800 Your Answer Correct Answer Your answer is correct. Show the balance sheet presentation on December 31, 2020. (Enter account name only and do not provide descriptive information Round answers to decimal places, eg. 5,675) Ivanhoe Corp. Balance Sheet (Partial) December 31, 2020 Current Liabilities Interest Payable A 24800 Long-term Liabilities Bonds Payable $ 620000 (d) Your Answer Correct Answer (Used) Prepare the journal entry to record payment of interest on May 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to decimal places, eg. 5,675.) Date Account Titles and Explanation Debit Credit May 1. 2021 Interest Payable 24.800 Interest Expense 12,400 Cash 37,200 (e) Your answer is partially correct. Prepare the adjusting entry to record the accrual of interest on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to decimal places, eg. 5,675.) Account Titles and Explanation Debit Credit Date Dec. 31. 2021 Interest Expense Interest Payable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services A Systematic Approach

Authors: William F. Messier, Steven M. Glover, Douglas F. Prawitt

4th Edition

0071117474, 9780071117470

More Books

Students also viewed these Accounting questions

Question

Explain what a sampling distribution is.

Answered: 1 week ago