On January 1, InnoSolutions, Inc. Issued $170,000 in bonds at face value. The bonds have a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, InnoSolutions, Inc. Issued $170,000 in bonds at face value. The bonds have a stated interest rate of 5 percent. The bonds mature in ten years and pay interest once per year on December 31. Required: 1. Prepare the journal entry to record the bond issuance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for issuance of bond. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal 2. Prepare the journal entry to record the interest payment on December 31. Assume no interest was accrued earlier in the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction llat Journal entry worksheet Record the interest payment on December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal 3. Assume the bonds were retired immediately after the first interest payment at a quoted price of 103. Prepare the Journal entry to record the early retirement of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the early retirement of the bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry Vlew general journal On January 1, InnoSolutions, Inc. Issued $170,000 in bonds at face value. The bonds have a stated interest rate of 5 percent. The bonds mature in ten years and pay interest once per year on December 31. Required: 1. Prepare the journal entry to record the bond issuance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for issuance of bond. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal 2. Prepare the journal entry to record the interest payment on December 31. Assume no interest was accrued earlier in the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction llat Journal entry worksheet Record the interest payment on December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal 3. Assume the bonds were retired immediately after the first interest payment at a quoted price of 103. Prepare the Journal entry to record the early retirement of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the early retirement of the bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry Vlew general journal
Expert Answer:
Answer rating: 100% (QA)
Journal entry to record issuance of bonds at face valu... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A $1,000 corporate bond has a stated interest rate of 8 percent. Interest on the bond is paid semiannually. Required: (a) How much interest will be paid on each interest payment date? (b) Suppose...
-
Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.
-
C. The breaking strength of 80 "test pieces" of a certain alloy is given in the following table, the unit being given to the nearest thousand grams per square inch. Breaking strength 44-46 46-48...
-
Suppose that in a wave of pessimism, housing prices fall by 10% across the entire economy. a. Has the stock of real assets of the economy changed? b. Are individuals less wealthy? c. Can you...
-
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2015, you come across several items needing further consideration. Currently,...
-
In a model of Ford's quarterly revenue TotalRevenue = 0 + 1 CarSales + 2 TruckSales + 3 SUVSales + , the three predictors are measured in number of units sold (not dollars). (a) Interpret each slope....
-
Celestial Inc. is organized into 3 distinct divisions. The company is currently contemplating the elimination of either Division 1 or Division 2 because they are showing a pre-tax loss. An annual...
-
Bond Transactions Brand Company issued $1,000,000 face value, eight-year, 12% bonds on April 1, 2010, when the market rate of interest was 12%. Interest payments are due every October 1 and April 1....
-
Juror one broke the silence after reviewing the final arguments by stating: "you know, I don't think the prosecuting attorney's closing arguments really make sense. I mean, who really believes that...
-
Tikkity Tock Clock Company sells three types of clocks. They purchase these clocks from manufacturers and sell them to retail stores. Tikkity Tock uses a perpetual inventory system, weighted average...
-
Casper Company performed $700 of services on account for Stevenson Company on September 1, 2018. Stevenson Company paid the bill in full on October 10, 2018. What entry would Casper Company make on...
-
What considerations are to be taken into account for the balancing of a reciprocating engine?
-
Fill in the Blank. Vibration isolation involves insertion of a resilient member between the vibrating mass and the of ____________ vibration.
-
True or False. All practical systems have damping.
-
True or False. High loss factor of a material implies less damping.
-
What is the function of a vibration isolator?
-
Question 3: M&B Company uses a perpetual inventory system. The following information related to its merchandise inventory during the first half of the year 2017: Quantity 170 units; cost 60 Q.R each...
-
Using the information in P11-2B, compute the overhead controllable variance and the overhead volume variance. Data From Problem 11-2B: Huang Company uses a standard cost accounting system to account...
-
Following is the income statement of Jericho Co. for its most recent scal year. Sales........................................................ $267,000 Cost of Goods...
-
Following is a condensed version of the 2009 income statement of Petersen Company. Sales............................................................. $ 2,176,200 Cost of Goods...
-
Following are price-earnings (P/E) ratios on December 10, 2008, for several prominent companies: P/E Ratio Pfizer Inc....................................................... 10.6 Lowes...
-
State whether the following are true or false. If false, explain why. (a) Drawings are an expense recorded in the partners trading, profit and loss and appropriation account (i.e., a separate section...
-
Distinguish between a private limited company and a public limited company. Is there any difference between the users of the accounts of each type of company?
-
J. Waite and P. Watchers trial balance as at 30 November 2012 is set out below. 1. Closing inventory is 15,000. 2. Salaries are 18,000 for Waite and 16,000 for Watcher. 3. There is 300 owing for...
Study smarter with the SolutionInn App