Presented below are selected transactions on the books of Stellar Foundry July 1, 2022 Bonds payable with a par value of 889,200, which are dated January 1, 2022, are sold at 112 290 plus accrued interest to yield 10 They are coupon bonds, bear interest at 12 (payable annually at January 1), and mature January 1, 2032 (Use interest expense account for accrued interest ) Dec 31 Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium Jan 1, 2023 Interest on the bonds is paid Jan 2 Bonds of par value of 355,680 are called at 101 and extinguished Dec 31 Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized Prepare journal entries for the transactions above (Round intermediate calculations to 5 decimal places, e g 1 25247 and final answers to 2 decimal places, e g 38,548 37 If no entry is required, select No Entry for the account titles and enter 0 for the amounts Credit account titles are automatically indented when amount is entered Do not indent manually )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 10, 2024

Presented below are selected transactions on the books of Stellar Foundry. July 1, 2022 Bonds payable with a par value of 889,200, which are dated

Presented below are selected transactions on the books of Stellar Foundry.

July 1, 2022		Bonds payable with a par value of 889,200, which are dated January 1, 2022, are sold at 112.290 plus accrued interest to yield 10%. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2032. (Use interest expense account for accrued interest.)
Dec. 31		Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium.
Jan. 1, 2023		Interest on the bonds is paid.
Jan. 2		Bonds of par value of 355,680 are called at 101 and extinguished.
Dec. 31		Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized.

Prepare journal entries for the transactions above. (Round intermediate calculations to 5 decimal places, e.g. 1.25247 and final answers to 2 decimal places, e.g. 38,548.37. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)