Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz answer both the balance sheets and the journal entry asap. these are parts of one question. Question 2 of 4 > 5/40 in View

plz answer both the balance sheets and the journal entry asap. these are parts of one question. image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Question 2 of 4 > 5/40 in View Policies Show Attempt History Current Attempt in Progress On January 1, 2021. Bonita Ltd, issued bonds with a maturity value of $5.20 million for $4.999.280 when the market rate of interest was 10%. The bonds have a contractual interest rate of 9% and mature on January 1, 2026. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. On January 1, 2021. Ivanhoe Company, a public company, purchased Bonita Ltd. bonds with a maturity value of $1.04 million to earn interest. On December 31, 2021, the bonds were trading at 99 Both companies' year end is December 31. Question 2 of 4 5/40 iii for the year ended December 31, 2021. (Round answers to decimal places, eg. 5,275.) IVANHOE COMPANY Balance Sheet (Partial) $ $ IVANHOE COMPANY Income Statement (Partial) Question 2 of 4 5/40 11! Part 8 Show how the bonds and related income statement accounts would be presented in Bonita Ltd's financial statements for the year ended December 31, 2021. (Round answers to decimal places, eg. 5,275.) BONITA LTD. Balance Sheet (Partial) $ $ BONITA LTD. Income Statement (Partial) 24" Partly Question 2 of 4 5/40 Balance Sheet (Partial) BONITA LTD. Income Statement (Partial) e Textbook and Media 6 Question 2 of 4 5/40 Part 7 Prepare the journal entries for Bonita Ltd. to record: (1) The payment of interest on July 1, 2021. (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. Round answers to decimal places, eg. 5,275.) Date Account Titles and Explanation Debit Credit Jul. 1 (To record payment of interest on bonds.) (2) The accrual of interest expense on December 31, 2021. (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. Round answers to decimal places, eg. 5,275.) N. ARTil den 240 Partly sur Wherunchida602362441737d 50063ddd170/estoru Maps Question 2 of 4 5/40 E (2) The accrual of interest expense on December 31, 2021. (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. Round answers to decimal places, es 5,275) Date Account Titles and Explanation Debit Credit Dec. 31 To accrue interest expense.) (3) The payment of interest on January 1, 2022 (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. Round answers to decimal places, eg. 5,275) Date Account Titles and Explanation Debit Credit Jan. 1 o Etc 24'C Partly sunny

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

Management Control Systems Performance Measurement Evaluation And Incentives

Authors: Kenneth Merchant, Wim Van Der Stede

3rd Edition

0273737619, 978-0273737612

More Books

Students also viewed these Accounting questions

Question

f. What subspecialties and specializations does the person list?

Answered: 1 week ago