Question E14-3

Exercises nstructions ndicate how each of these items should be classified in the financial statements 14-3 (L01) (Entries for Bond Transactions) Presented below are two independent situations. 1. On January 1, 2017, Simon Company issued $200,000 of 9%,10-year bonds at par. Interest is payable quarterly on A July 1, October 1, and January 1. On June 1, 2017, Garfunkel Company issued $100,000 of 12%, 10-year bonds dated January 1 at par plus accrued in Interest is payable semiannually on July 1 and January 1. nstructions or each of these two independent situations, prepare journal entries to record the following. (a) The issuance of the bonds. (b) The payment of interest on July 1. (c) The accrual of interest on December 31 14-4 (LOI) EXCEL (Entries for Bond Transactions-Straight-Line) Celine Dion Company issued S600000 of 10%, 2 onds on January 1, 2017, at 102. Interest is payable semiannually on July 1 and January 1. Dion Company uses the straig ethod of amortization for bond premium or discount. structions repare the journal entries to record the following (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2017 (c) The accrual of interest and the related amortization on December 31, 2017. 14-5 (L01) EXCEL (Entries for Bond Transactions-Effective-Interest) Assume the same information as in E144, at Celine Dion Company uses the effective-interest method of amortization for bond premium or discount. Assume as ve yield of 9.7705%. structions repare the journal entries to record the following. (Round to the nearest dollar) The issuance of the bonds. (a) (b) The payment of interest and related amortization on July 1,2017 (c) The accrual of interest and the related amortization on December 31, 2017, Straight-Line) Devon Harris Company sells 10% bonds having a maturit IA-6 (L01) (Amortization Schedule n January 1. nstructions f $2,000,000 for $1,855,816. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable an