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Please help me Selected transactions on the books of Ayayai Corporation follow: May 1, 2020 Bonds payable with a par value of $700,000, which are
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Selected transactions on the books of Ayayai Corporation follow: May 1, 2020 Bonds payable with a par value of $700,000, which are dated January 1, 2020, are sold at 107 plus accrued interest. They are coupon bonds, bear interest at 10% (payable annually at January 1), and mature on January 1, 2030. (Use ar Dec. 31 Adjusting entries are made to record the accrued interest on the bonds and the amortization of the proper amount o Jan. 1, 2021 Interest on the bonds is paid. April 1 Par value bonds of $420,000 are repurchased at 101 plus accrued interest and are retired. (Bond premium is to be ar Dec. 31 Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortize (a) Assume that Ayayai follows ASPE. Prepare the journal entries for the transactions above. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit May 1, 2020 Cash 772333 Bonds Payable 700000 Interest Expense 72333 May 1, 2020 Cash 70000 Interest Expense 70000 (To record accrued interest expense) Dec 31, 2020 Interest Expense 70000 Interest Payable 70000 (To amortize the premium) Jan. 1. 2021 Interest Payable Cash (To amortize the premium) Apr. 1, 2021 Bonds Payable 446612 Interest Expense 10500 Cash 434700 Gain on Redemption of Bonds 22412 (To record reacquisition of bonds) Dec 31, 2021 Interest Expense 28000 Interest Payable 28000 (To record accrued interest expense) Dec 31, 2021 (To amortize the premium)Step by Step Solution
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