North Airlines Company issued $900,000 of 8%, 10-year bonds on January 1, 2020, at face value....

Transcribed Image Text:

North Airlines Company issued $900,000 of 8%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1. Instructions Prepare the journal entries to record the following events. a. The issuance of the bonds. b. The accrual of interest on December 31. c. The payment of interest on January 1, 2021. d. The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded. 2. Clipper Company borrowed $500,000 on December 31, 2020, by issuing a $500,000, 7% mortgage note payable. The terms call for annual installment payments of $80,000 on December 31 Instructions a. Prepare the journal entries to record the mortgage loan and the first two installment payments. b. Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2021 North Airlines Company issued $900,000 of 8%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1. Instructions Prepare the journal entries to record the following events. a. The issuance of the bonds. b. The accrual of interest on December 31. c. The payment of interest on January 1, 2021. d. The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded. 2. Clipper Company borrowed $500,000 on December 31, 2020, by issuing a $500,000, 7% mortgage note payable. The terms call for annual installment payments of $80,000 on December 31 Instructions a. Prepare the journal entries to record the mortgage loan and the first two installment payments. b. Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2021 North Airlines Company issued $900,000 of 8%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1. Instructions Prepare the journal entries to record the following events. a. The issuance of the bonds. b. The accrual of interest on December 31. c. The payment of interest on January 1, 2021. d. The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded. 2. Clipper Company borrowed $500,000 on December 31, 2020, by issuing a $500,000, 7% mortgage note payable. The terms call for annual installment payments of $80,000 on December 31 Instructions a. Prepare the journal entries to record the mortgage loan and the first two installment payments. b. Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2021 North Airlines Company issued $900,000 of 8%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1. Instructions Prepare the journal entries to record the following events. a. The issuance of the bonds. b. The accrual of interest on December 31. c. The payment of interest on January 1, 2021. d. The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded. 2. Clipper Company borrowed $500,000 on December 31, 2020, by issuing a $500,000, 7% mortgage note payable. The terms call for annual installment payments of $80,000 on December 31 Instructions a. Prepare the journal entries to record the mortgage loan and the first two installment payments. b. Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2021

Answer rating: 100% (QA)

a Journal entry to record the issuance of bonds January 1 2020 Cash 900000 Bonds Payable 900000 b Jo... View the full answer