Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

this is the best way I can show you everything Exercise 9-12 On January 1, 2019, Novak and Lois Company purchased 12% bonds having a

image text in transcribedthis is the best way I can show you everythingimage text in transcribed

Exercise 9-12 On January 1, 2019, Novak and Lois Company purchased 12% bonds having a maturity value of $294,000 for $316,289.83. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2019, and mature on January 1, 2024, with interest receivable on December 31 of each year. Novak and Lois Company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified as amortized cost investments. Prepare the journal entry at the date of the bond purchase. (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 o for the amounts. Round answers to 2 decimal places, e.g. 52.75.) Debit Credit Date Account Titles and Explanation Jan. 1 Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 52.75.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Date Cash Received Interest Revenue Premium Amortized 1/1/19 Carrying Amount of Bonds 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Prepare the journal entry to record the Interest received and the amortization for 2019. (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 o for the amounts. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019 Prepare the journal entry to record the interest received and the amortization for 2020. (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 o for the amounts. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 All 1 question Exercise 9-12 On January 1, 2019, Novak and Lois Company purchased 12% bonds having a maturity value of $294,000 for $316,289.83. The bonds provide the bondholders with a 10% yleld. They are dated January 1, 2019, and mature on January 1, 2024, with interest receivable on December 31 of each year. Novak and Lois Company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified as amortized cost investments. Prepare the journal entry at the date of the bond purchase. (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 o for the amounts. Round answers to 2 decimal places, e.g. 52.75.) List of Accounts Date Account Titles and Explanation Debit Credit Jan. 1 Exercise 9-12 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 52.75.) . 2 , .) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Date Cash Received Interest Revenue Premium Amortized 1/1/19 Carrying Amount of Bonds Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Dividends Receivable Dividend Revenue FV-NI Investments FV-OCI Investments Gain on Disposal of Investments in Associate Gain on Disposal of Investments - Cost/Amortized Cost Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain or Loss in Value of Investment Property GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments - Cost/Amortized Cost Loss on Disposal of Investments - FV-NI Loss on Disposal of Investments - FV-OCI Loss on Impairmer No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the interest received and the amortization for 2019. (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 o for the amounts. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Dec 31, 2019 SHOW LIST OF ACCOUNTS LINK TO TEXT no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to 2 decimal places, e.g. 52.73 wount is entered. Do not indent manually. If Date Debit , "" o . 2 , .) Account Titles and Explanation Credit Dec. 31, 2020

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_2

Step: 3

blur-text-image_3

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

Accounting Principles Understanding Important Terms And Principles Of Accounting

Authors: Lyndsay Sudduth

1st Edition

B0B5KV57NJ, 979-8840104033

More Books

Students also viewed these Accounting questions

Question

What do you need to know about your students to motivate them?

Answered: 1 week ago

Question

Explain the pages in white the expert taxes

Answered: 1 week ago