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please help me with journalizing the entries to record the foregoing transactions and question #2&3? please and thanks so much !!! Entries for Bonds Payable

please help me with journalizing the entries to record the foregoing transactions and question #2&3? please and thanks so much !!! image text in transcribed
image text in transcribed
Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: Year 1 Issued $5,320,000 of five-year, 10% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of July 1. $5,119,499. Interest is payable semiannually on December 31 and June 30. Borrowed $430,000 by issuing a 10-year, 6% installment note to Intexicon Bank. The note requires annual payments of $58,423, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $5,450 of interest on the installment note. The interest is payable on the date of the next installment note payment. Paid the semiannual interest on the bonds. The band discount amortization of $20,050 is combined with the semiannual interest Oct. 1. Dec. 31 payment Year 2 Paid the semiannual interest on the bonds. The bond discount amortization of $20,050 is combined with the semiannual interest June 30. payment Sept. 30. Pald the annual payment on the note, which consisted of interest of $25,800 and principal of $32,623. Dec. 31. Accrued $5,961 of interest on the installment note. The interest is payable on the date of the next installment note payment Paid the semiannual interest on the bonds. The bond discount amortization of $20,050 is combined with the semiannual interest payment. Dec. 31. Year 3 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $120,301 after payment of interest and amortization of discount have been recorded. (Record the redemption only.) Sept. 30. Pald the second annual payment on the note, which consisted of interest of $23,843 and principal of $34,580, June 30. Required: 1. Journalize the entries to record the foregoing transactions. For compound transactions, if an amount box does not require an entry, leave it blank or enter "O". When required, round your answers to the nearest dollar Dec. 31-Note Dec. 31-Bond Year 3 June 30 Sept. 30 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2 a. Year 1 b. Year 2 $ 3. Determine the carrying amount of the bonds as of December 31, Year 2

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