The following is taken from the Sinjh Corporation balance sheet. SINJH CORPORATION Balance Sheet (partial) December...

 

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The following is taken from the Sinjh Corporation balance sheet. SINJH CORPORATION Balance Sheet (partial) December 31, 2015 Current liabilities Interest payable (for 12 months from January 1 to December 31) Long-term liabilities Bonds payable, 9%, due January 1, 2026 Less: Discount on bonds payable $ 216,000 $2,400,000 90,000 2,310,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sinjh uses straight-line amortization for any bond premium or discount. From December 31, 2015, the bonds will be outstanding for an additional 10 years (120 months). Instructions (Round all computations to the nearest dollar). (a) Journalize the payment of bond interest on January 1, 2016. (b) Prepare the entry to amortize bond discount and to accrue the interest due on December 31, 2016. (c) Assume that on January 1, 2017, after paying interest, Sinjh Corp. calls bonds having a face value of $800,000. The call price is 102. Record the redemption of the bonds. (d) Prepare the adjusting entry at December 31, 2017, to amortize bond discount and to accrue interest on the remaining bonds. The following is taken from the Sinjh Corporation balance sheet. SINJH CORPORATION Balance Sheet (partial) December 31, 2015 Current liabilities Interest payable (for 12 months from January 1 to December 31) Long-term liabilities Bonds payable, 9%, due January 1, 2026 Less: Discount on bonds payable $ 216,000 $2,400,000 90,000 2,310,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sinjh uses straight-line amortization for any bond premium or discount. From December 31, 2015, the bonds will be outstanding for an additional 10 years (120 months). Instructions (Round all computations to the nearest dollar). (a) Journalize the payment of bond interest on January 1, 2016. (b) Prepare the entry to amortize bond discount and to accrue the interest due on December 31, 2016. (c) Assume that on January 1, 2017, after paying interest, Sinjh Corp. calls bonds having a face value of $800,000. The call price is 102. Record the redemption of the bonds. (d) Prepare the adjusting entry at December 31, 2017, to amortize bond discount and to accrue interest on the remaining bonds.

Answer rating: 100% (QA)

Date Account head Debit Credit Jan 1 By Interest payable 216000 ... View the full answer