Carla Vista Company issued $480,000, 7%, 20-year bonds on January 1, 2022, at 105. Interest is...
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Carla Vista Company issued $480,000, 7%, 20-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Carla Vista uses straight-line amortization for bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1. 2022 eTextbook and Media Debit Credit (b) Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Dec. 31, 2022 Account Titles and Explanation I eTextbook and Media Debit Credit (c) Prepare the journal entry to record the payment of interest on January 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Jan, 1, 2023 Account Titles and Explanation eTextbook and Media Debit Credit (d) Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2042 eTextbook and Media Debit Credit Carla Vista Company issued $480,000, 7%, 20-year bonds on January 1, 2022, at 105. Interest is payable annually on January 1. Carla Vista uses straight-line amortization for bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1. 2022 eTextbook and Media Debit Credit (b) Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Dec. 31, 2022 Account Titles and Explanation I eTextbook and Media Debit Credit (c) Prepare the journal entry to record the payment of interest on January 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Jan, 1, 2023 Account Titles and Explanation eTextbook and Media Debit Credit (d) Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2042 eTextbook and Media Debit Credit
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Related Book For
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
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