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pls help and leave explanation. thank you. On April 1. 2020, Carla Company sold 15,300 of its 12%, 15-year $1.000 face value bonds at 97.
pls help and leave explanation. thank you.
On April 1. 2020, Carla Company sold 15,300 of its 12%, 15-year $1.000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Carla took advantage of favorable prices of its stock to extinguish 6,900 of the bonds by issuing 227,700 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $33 per share on March 1, 2021. Prepare the journal entries needed on the books of Carla Company to record the following (Round intermediate calculations to 6 decimal places. eg. 1.251247 and final answers to decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account tities and enter O for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) April 1, 2020: issuance of the bonds. October 1, 2020: payment of semiannual interest. December 31, 2020. accrual of interest expense. March 1, 2021: extinguishment of 6,900 bonds. (No reversing entries made.) (c) (d) 8.7/10 iii > Question 1 of 2 466650 ) 12/31/20 Interest Expense 7650 Discount on Bonds Payable 459000 Interest Payable 126067 3/1/21 Interest Expense 186000 Interest Payable 310000 Cash 2067 Discount on Bonds Payable (To record interest and discount on bonds retired) 3/1/21 Bonds Payable 6200000 TIN 8.7/10 II! Question 1 of 2 2067 Discount on Bonds Payable (To record interest and discount on bonds retired) 3/1/21 6200000 Bonds Payable 1500089 Loss on Redemption of Bonds 185989 Discount on Bonds Payable 2277000 Common Stock 5237100 Paid-in Capitalin Excess of Par. Common Stock (To record extinguishment of the bonds) Step by Step Solution
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