1
answer
0
watching
653
views
28 Sep 2019
Sehr Company issued $500,000, 6%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Sehr uses straight-line amortization for bond premium or discount.
Instructions
Prepare the journal entries to record the following events.
(a) The issuance of the bonds.
(b) The accrual of interest and the premium amortization on December 31, 2017.
(c) The payment of interest on January 1, 2018.
(d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
Sehr Company issued $500,000, 6%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Sehr uses straight-line amortization for bond premium or discount.
Instructions
Prepare the journal entries to record the following events.
(a) The issuance of the bonds.
(b) The accrual of interest and the premium amortization on December 31, 2017.
(c) The payment of interest on January 1, 2018.
(d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
Casey DurganLv2
28 Sep 2019
Related questions
| Manilow Company issued $497,000, 7%, 20-year bonds on January 1, 2014, at 102. Interest is payable semiannually on July 1 and January 1. Manilow uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
| Celine Dion Company issued | $1,200,000 | of | 12% | 10 | year bonds on | |
| January 1, 2017 at | 103 | Interest is payable semiannually on July 1 and January 1. | ||||
| Dion Company uses the effective interest method of amortization for bond premium or discount. | ||||||
| Assume an effective yield of | 9.7705% | (market interest rate at issurance). | ||||
| Instructions: | ||||||
| Prepare the journal entries to record the following. (Round to the nearest dollar.) | ||||||
| (a) The issuance of the bonds. | ||||||
| Jan 1, 17 | ||||||
| (b) The payment of interest and related amortization on July 1, 2017. | ||||||
| Jul 1, 17 | ||||||
| (c) The accrual of interest and the related amortization on December 31, 2017. | ||||||
| Dec 31, 17 | ||||||
