On the River Co. (OTRC) sells $1,000,000 of 10-year, 4% bonds at par plus accrued interest. The
Question:
On the River Co. (OTRC) sells $1,000,000 of 10-year, 4% bonds at par plus accrued interest. The bonds are dated January 1, 2021, but due to market conditions are not issued until May 1, 2021. Interest is payable on June 30 and December 31 each year.
Required:
Prepare journal entries to record:
a. The issuance of the bonds on May 1, 2021. Assume that OTRC has adopted a policy of crediting accrued interest payable for the accrued interest on the date of sale.
b. Payment of interest on June 30, 2021.
c. Payment of interest on December 31, 2021.
Step by Step Answer:
a The journal entries is as follows i June 30 2...View the full answer
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
Prepare journal entries to record the following. (a) Gomez Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salvage...
-
Prepare journal entries to record these transactions: (a) Benton Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No...
-
Prepare journal entries to record the following. (a) Twitter Tracker Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment....
-
Debug the given C program to read and print N array elements. Find 10 errors in the given Code and correct the errors. (5Marks) NOTE: Copy and PASTE the correct program in the space below. /*Arrays...
-
Refer to the hops data in Exercise 13.17. Obtain the residuals from each of the four models you selected in Exercise 13.17. a. Is there evidence in the residuals of a violation of the normality...
-
Sketch a line with a y-intercept of (0, 5) and slope 5/2.
-
Harold Fail owned a plot of land in Georgia known as Ebenezer Landing, where he operated a public boat ramp and parking lot. In 1999, Fail and Steve Bodiford entered into an oral agreement...
-
The trial balance for the Venice Beach Kite Shop, a business owned by Molly Young is shown on page 550. Year-end adjustment information is as follows: (a and b) Merchandise inventory costing $35,000...
-
Circle the most appropriate choice for the most optimized MIPS assembly program to implement the following compound expression applying a fall through technique: if (($t1 < 0) || ($t2 < 0)) {$t3++; }...
-
RECYCLING PLASTICS BOTTLES, SAVING THE PLANET Plastic what would we do without it? It s an important part of our everyday life and serves as the packaging to many of the products we use on a daily...
-
Discuss how non-current financial liabilities are initially and subsequently valued.
-
Utopia Corp. reports its financial results in accordance with ASPE and employs the straight-line method of amortization. The company issues $5,000,000 of six-year, 6% bonds dated January 1, 2019....
-
For the system in Problem P13.4, let r(r) be a unit step input and calculate the response of the system by synthetic division.
-
Media Skills: Writing Email Subject Lines Using your imagination to make up whatever details you need, revise the following email subject lines to make them more effective: a. New budget figures b....
-
Turn to the Handbook of Grammar, Mechanics, and Usage at the end of this book and review all of Sentences. Using those guidelines, indicate the preferred sentence in the following pairs. (You can...
-
Rewrite each of the following to eliminate bias: 1. Whomever we hire, he or she needs to know both Java- Script and Python. 2. This office made several changes to remove barriers for disabled...
-
Explain the important differences between texting and formal writing on paper or email.
-
Substitute a better phrase for each of the following: 1. You claim that 2. You must update 3. It is not our policy to 4. You neglected to 5. In which you assert 6. We are sorry you are dissatisfied...
-
Is it possible to wholly convert a given amount of mechanical energy into thermal energy? Is it possible to wholly convert a given amount of thermal energy into mechanical energy? Cite examples to...
-
Prove the formula for (d/dx)(cos-1x) by the same method as for (d/dx)(sin-1x).
-
Consider the list of items in the previous problem (P9-27). In problem (p9-27) Required: Classify each item as a biological asset, agricultural produce, or neither. Related activity involves active...
-
Identify whether IAS 41 applies to the following items (i.e., arc they used in or do they directly result from agricultural activities?). Related activity involves active management Yes/No) Item...
-
Below are several events and/or transactions. a. Paid the government S3,000,000 for the right to broadcast on a certain frequency for five years. b. Paid legal fees of $6,000,000 to successfully...
-
How does functionalist analysis of the division of labor elucidate its role in promoting social solidarity, fostering interdependence, and maximizing societal productivity by allocating individuals...
-
Use the following sales journal to record the transactions. All credit sales are terms of n/30. (If a box is not used in the journal leave the box empty; do not select information or enter a zero.)...
-
Create a class Apartment. The class has the following instance variables, constructor, and methods. . A String instance variable m_city. An int instance variable m numBedRooms. An int instance...
Study smarter with the SolutionInn App