Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help!!! 9. On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000.

please help!!!

9. On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to record the following transactions for the current fiscal year: (a) Issuance of the bonds. (b) First semiannual interest payment (record as separate entry from discount amortization). (c) Amortization of bond discount for the year, using the straight-line method of amortization.

10. A $375,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $320,000. Journalize the redemption of the bonds

11. On January 1, Yeargan Company obtained a $125,000, 7-year 5% installment note from Farmers Bank. The note requires annual payments of $21,602, with the first payment occurring on the last day of the fiscal year. The first payment consists of $6,250 interest and principal repayment of $15,352. Journalize the following entries: (a) Issued the installment notes for cash on January 1. (b) Paid the first annual payment on the note.

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

Financial Reporting And Auditing In Sovereign Operations Technical Guidance Note

Authors: Asian Development Bank

1st Edition

9292698192, 978-9292698195

More Books

Students also viewed these Accounting questions

Question

What factors change the energy expended for a given job?

Answered: 1 week ago

Question

Develop successful mentoring programs. page 400

Answered: 1 week ago