Question: On January 1, 2007 the Johnson Corporation issued a two-year note due December 31, 2008, with a face value of $10,000, receiving $7,694.68 in exchange.

On January 1, 2007 the Johnson Corporation issued a two-year note due December 31, 2008, with a face value of $10,000, receiving $7,694.68 in exchange.

Required

Prepare the journal entries to account for the note:

1. On the date the note is issued

2. At the end of 2007

3. At the end of 2008

Step by Step Solution

★★★★★

3.49 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 2007 Jan 1 Cash 769468 Discount on Notes Payable 230532 Notes Payable 100... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

120-B-A-L (1501).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

On January 1, 2010, the Johnson Corporation issued a two-year note due December 31, 2011, with a face value of $10,000, receiving $7,694.68 in exchange. Required Prepare the journal entries to...

On Jan 1, ABC issues a bond with a face value of 1,000, 6% coupon, 3 year term, payable semi-annually each July 1 and Jan 1. The market requires a 4% return. What is the net book value of the bond...

A recently issued industrial bond with a face value of $10,000 has a coupon rate of 8% per year, payable annually. The bond matures 20 years from now. Jeremy is interested in buying one bond. If he...

On January 1, 2013, Johnson Corporation issued a 2-year note due December 31, 2014, with a face value of $10,000, receiving $7,694.68 in exchange. Required: Prepare the journal entries to account for...

On January 1, 2019, Johnson Corporation issued a 2-year note due December 31, 2017, with a face value of $10,000, receiving $7,694.68 in exchange. Required: Prepare the journal entries to account for...

On January 1, 2016, Johnson Corporation issued a 2 year note due December 31, 2017, with a face value of $10,000, receiving $7,694.68 in exchange. Required: Prepare the journal entries to account for...

ny toreconu the ree of the bonds. r ge [DOIT115-3] Detwik/Orchard issues a S700.000, 6%, - payment needed financing fe a new lab. The terms call for annual payments of $72,074 year mortgage note to...

Chowan Corporation issued $100,000 of 10% bonds dated January 1, 2016, for $96,832.72 on January 1, 2016. The bonds are due December 31, 2019, were issued to yield 11%, and pay interest semiannually...

Apollo case studies the question is on page 44 Apollo case studies the question is on page 44 Apollo case studies the question is on page 44 APOLLO SHOES, INC. An Audit Case to Accompany AUDITING AND...

Vector Inc. issued bonds on January 1, 2020, that pay interest semiannually on June 30 and December 31. The par value of the bonds is $260,000, the annual contract rate is 12%, and the bonds mature...

The Pauline Company has experienced a slow (3 percent per year) but steady increase in earnings per share. The firm has consistently paid out an average of 75 percent of each years earnings as...

1. A force of 36.0 N stretches a spring 18.0 cm. Find the spring constant (in N/m). 2. A force of 5.00 N is applied to a spring whose spring constant is 0.250 N/cm. Find its change in length (in cm)....

The energy stored in a capacitor can be found using the equation... 1 2 C V 2 C V 2 1 2 C 2 V 2 C V

3. If the parties to a contract do not expressly agree on when title to goods passes, what determines when title passes?

Who are the two key international players in the development of international accounting standards? Explain their role.

Discuss and explain the financial perfomance analysis, Balance Score Card performance measures and recommondations with overall conclusion for below available liquidity and profitability data of...

Here are data on two stocks, both of which have discount rates of 20% : a. What is the dividend payout ratio for each firm? Note: Enter your answers as a percent rounded to 2 declmal places. b. What...

E11-7 Computing Dividends on Preferred Shares and Analyzing Differences [LO3, LO4] The records of Hoffman Company reflected the following balances in the shareholders equity accounts at December 31,...