The following is taken from the Marin SA statement of financial position. MARIN SA Statement of...
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The following is taken from the Marin SA statement of financial position. MARIN SA Statement of Financial Positiion (partial) December 31, 2013 Non-current liabilities Bonds payable (face value €2,976,000), 8% due January 1, 2028 €3,167,500 Current liabilities Interest payable (for 12 months from January 1 to December 31) 238,080 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Marin uses straight-line amortization for any bond premium or discount. From December 31, 2017, the bonds will be outstanding for an additional 10 years (120 months). Assume the country allows the use of straight line amortization for bond premiums and discounts. (a) Journalize the payment of bond interest on January 1, 2018. (b) Prepare the entry to amortize bond premium and to accrue the interest due on December 31, 2018. () Assume that on January 1, 2019, after paying interest, Marin calls bonds having a face value of €1,190,400. The call price is 102. Record the redemption of the bonds. (d) Prepare the adjusting entry at December 31, 2019, to amortize bond premium and to accrue interest on the remaining bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 2018 (a) Jan. 1 (b) Dec. 31 2019 (c) Jan. 1 (d) Dec. 31 The following is taken from the Marin SA statement of financial position. MARIN SA Statement of Financial Positiion (partial) December 31, 2013 Non-current liabilities Bonds payable (face value €2,976,000), 8% due January 1, 2028 €3,167,500 Current liabilities Interest payable (for 12 months from January 1 to December 31) 238,080 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Marin uses straight-line amortization for any bond premium or discount. From December 31, 2017, the bonds will be outstanding for an additional 10 years (120 months). Assume the country allows the use of straight line amortization for bond premiums and discounts. (a) Journalize the payment of bond interest on January 1, 2018. (b) Prepare the entry to amortize bond premium and to accrue the interest due on December 31, 2018. () Assume that on January 1, 2019, after paying interest, Marin calls bonds having a face value of €1,190,400. The call price is 102. Record the redemption of the bonds. (d) Prepare the adjusting entry at December 31, 2019, to amortize bond premium and to accrue interest on the remaining bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 2018 (a) Jan. 1 (b) Dec. 31 2019 (c) Jan. 1 (d) Dec. 31
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Date Account Titles and Explanation Debit Credit 2018 a Jan 1 Interest Payable 2380... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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