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please show how you arrived at your solutions for learning purposes, thank you :)!!! Pina Company issued $504,000 of 11%, 20-year bonds on January 1,
please show how you arrived at your solutions for learning purposes, thank you :)!!!
Pina Company issued $504,000 of 11%, 20-year bonds on January 1, 2020, at 101. Interest is payable semiannually on July 1 and January 1. Pina Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) (c) The issuance of the bonds. The payment of interest and the related amortization on July 1, 2020. The accrual of interest and the related amortization on December 31, 2020. Date Account Titles and Explanation Debit Credit 1/1/20 7/1/20 12/31/20 On January 1, 2020, Bramble Company makes the two following acquisitions. 1. Purchases land having a fair value of $160,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $251,763. Purchases equipment by issuing a 7%, 8-year promissory note having a maturity value of $270,000 (interest payable annually). 2. The company has to pay 12% interest for funds from its bank. (a) (b) Record the two journal entries that should be recorded by Bramble Company for the two purchases on January 1, 2020. Record the interest at the end of the first year on both notes using the effective-interest method. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) 1. Date January 1, 2020 2. January 1, 2020 (b) 1. December 31, 2020 2. December 31, 2020Step by Step Solution
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