Exercises 10-6A on page 568
Doyle Company issued a $500,000 of 10year, 7% bonds on January 1, 2016. The bonds were issued at facevalue. Interest is payable in cash on December 31 of each year.Doyle immediately invested the proceeds from the bond issue inland. The land was leased for an annual $125,000 cash revenue,which was collected on December 31 of each year, beginning December21, 2016.
Prepare the journal entries for these events, and post them toT-accounts for 2016 and 2017.
Prepare the income statement, balance sheet and statement ofcash flows for 2016 and 2017.
Exercise 10-7A on page 568
On January 1, 2016, Bell Corp. issued$180,000 of 10 year, 6% bonds at their face amount. Interest ispayable on December 31 of each year with the first payment dueDecember 31, 2016.
Prepare all journal entries related to these bonds for 2016 and2017.
Exercise 10-8A on page 568
Nivan Co. issued $500,000 of 5%, 10year, callable bonds on January 1, 2016, at their face value. Thecall premium was 3 percent (bonds are callable at 103). Interestwas payable annually on December 31. The bonds were called onDecember 31, 2020.
Prepare the journal entries to record the bond issue on January1, 2016, and the bond redemption on December 31, 2020. Entries foraccrual and payment of interest are not required.
Exercises 10-6A on page 568
Doyle Company issued a $500,000 of 10year, 7% bonds on January 1, 2016. The bonds were issued at facevalue. Interest is payable in cash on December 31 of each year.Doyle immediately invested the proceeds from the bond issue inland. The land was leased for an annual $125,000 cash revenue,which was collected on December 31 of each year, beginning December21, 2016.
Prepare the journal entries for these events, and post them toT-accounts for 2016 and 2017.
Prepare the income statement, balance sheet and statement ofcash flows for 2016 and 2017.
Exercise 10-7A on page 568
On January 1, 2016, Bell Corp. issued$180,000 of 10 year, 6% bonds at their face amount. Interest ispayable on December 31 of each year with the first payment dueDecember 31, 2016.
Prepare all journal entries related to these bonds for 2016 and2017.
Exercise 10-8A on page 568
Nivan Co. issued $500,000 of 5%, 10year, callable bonds on January 1, 2016, at their face value. Thecall premium was 3 percent (bonds are callable at 103). Interestwas payable annually on December 31. The bonds were called onDecember 31, 2020.
Prepare the journal entries to record the bond issue on January1, 2016, and the bond redemption on December 31, 2020. Entries foraccrual and payment of interest are not required.
Related questions
Chowan Corporation issued $115,000 of 9% bonds dated January 1,2016, for $111,283.65 on January 1, 2016. The bonds are dueDecember 31, 2019, were issued to yield 10%, and pay interestsemiannually on June 30 and December 31. Chowan uses the effectiveinterest method of amortization.
Required:
| Prepare the journal entries torecord the issue of the bonds on January 1, 2016, and the interestpayments on June 30, 2016, December 31, 2016, and June 30, 2017. Inaddition, prepare a bond interest expense and discount amortizationschedule for the bonds through June 30, 2017. |
