Stottard Company issued $650,000 of 8%, 10-year bonds on June 1, 2011, at 103. The bonds were

Question:

Stottard Company issued $650,000 of 8%, 10-year bonds on June 1, 2011, at 103. The bonds were dated June 1, and interest is payable on June 1 and December 1 of each year.

Required:

1. Record the issuance of the bonds on June 1, 2011.

2. Record the interest payment on December 1, 2011. Stottard uses the straight-line method of amortization.

3. Record the interest accrual on December 31, 2011, including amortization.

4. Record the journal entries required on June 1, 2021, when the bonds mature.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

See More Books

Question Posted: Dec 30, 2011 05:09 AM

See More Questions

The XYZ Co. sold $3,000,000, 8%, 10 year bonds on January 1, 2018. The bonds were dated January 1, 2018, and pay interest on January 1. The company uses the effective interest method to amortize bond...
Neagle Corporation issued $500,000 9% 10 year bonds on January 1, 2009 for $468,844. Interest is payable semi annually on July 1 and January 1. Neagle uses straight line amortization for bond premium...
Answer the five questions in short answer format. A paragraph or two will be enough to answer the question. 1.Describe an industry that seems to have strong competitive rivalry ( besides the soft...
Consumers commonly focus on the price when buying auto insurance. They feel less pain from buying auto insurance when they pay as little as possible However, this strategy can backfire because the...
1. When looking for indicator of investment in specific country, which is more powerful and influential; Gross Capital formation of foreign direct investments and why? 2. What is the difference...
The authorised and issued share capital of Cosy Fires Ltd was 75,000 divided into 75,000 ordinary shares of 1 each, fully paid. On 2 January 2017, the authorised capital was increased by a further...
Meddevco (name changed) is a large multinational corporation that operates in the medical devices sector. The firm employs around 33,000 people in five divisions and has operations in 120 countries....
Paul Adams owns a health club in downtown Los Angeles. He charges his customers an annual fee of $500 and has an existing customer base of 600. Paul plans to raise the annual fee by 6 percent every...
1. (a) (3 points) For which values of k > 0 is the spring-mass system y" + y' + ky = 0 (i) underdamped; (ii) critically damped; (iii) overdamped? For which value(s) of k > 0 is it possible for a...
Imagine that you are the supervisor responsible for a pharmacy. You have received a few complaints about mistakes in customers prescriptions. To improve the quality of service delivered by the...
On March 1, 2012, Roger Corporation issued $150,000 of 10%, five-year bonds at 105. The bonds were dated March 1, 2012, and interest is payable on March 1 and September 1. Roger records amortization...
Cyprus Corporation issued $150,000 of bonds on January 1, 2012, to raise funds to buy some special machinery. The maturity date of the bonds is January 1, 2017, with interest payable each January 1...
Which of the following tables would most likely have a concatenated primary key? a. Inventory b. Sales c. InventorySales d. none of the above
The base of the global economic pyramid is comprised of economies in which people make how much per capita per year?
Does the Russian economy have a big percentage of small and medium enterprises in its economy? Why is that? How the size of companies affects the sustainability of the economy?
llness can dramatically impact a person's ability to achieve a specific financial goal. An aging society and health treatments and pharmaceuticals that extend lifespans increase the likelihood that...
When Simone and Henri, residents of Quebec, withdrew their RRSP funds, they were subject to a withholding tax. Assume their RRSP was worth $165,000 at the time of withdrawal. How much money would...
You are considering selling your family's auto parts company. If the average P/E ratio of a company in the auto-parts industry is 8 and last year your company had earnings of $15m, what is an...
Which of the following financial statements is not required to be reported on a governmentwide basis? a. Balance Sheet. b. Statement of Net Cost. c. Statement of Changes in Net Position. d. All of...
If you want to solve a minimization problem by applying the geometric method to the dual problem, how many variables and problem constraints must be in the original problem?
What methods have you witnessed for trying to bring about change in an organization or group in which you have been involved? Was group participation used? If not, why not?
A railroad branch line to a missile site is to be constructed. It is expected that the railroad line will be used for 15 years, after which the missile site will be removed and the land turned back...
Consider A-E, five mutually exclusive alternatives: A B C D E Initial cost $600 $600 $600 $600 $600 Uniform annual 100 100 100 150 150 Benefits for first 5 years 5 years 50 100 110 0 50 The interest...
An investor has carefully studied a number of companies and their common stock. From his analysis, he has decided that the stocks of six firms are the best of the many he has examined. They represent...
In 2019, Rylan Enterprises' net income increased by $2.5 million while its depreciation expense decreased by $500,000, accounts receivable increased by $2,000,000 and accounts payable increased by...
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabrication. It started, completed, and sold...
The Sky Blue Corporation has the following adjusted trial balance at December 31. Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts...

Stottard Company issued $650,000 of 8%, 10-year bonds on June 1, 2011, at 103. The bonds were

Question:

Step by Step Answer:

1 2011 June 1 Cash 669500 Premium on Bonds 19500 Bonds Payable 650000 Issued 6500000 of 10year 8 bon...View the full answer

Accounting concepts and applications

Students also viewed these Accounting questions