On April 1, 2020, Sandhill Company sold 23,400 of its 11%, 15-year, $1.000 face value bonds...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On April 1, 2020, Sandhill Company sold 23,400 of its 11%, 15-year, $1.000 face value bonds at 96. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Sandhill took advantage of favorable prices of its stock to extinguish 5,400 of the bonds by issuing 178.200 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $31 per share on March 1, 2021. Prepare the journal entries needed on the books of Sandhill Company to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) (c) (d) April 1, 2020: issuance of the bonds. October 1, 2020: payment of semiannual interest. December 31, 2020: accrual of interest expense. March 1, 2021: extinguishment of 5,400 bonds. (No reversing entries made.) On April 1, 2020, Sandhill Company sold 23,400 of its 11%, 15-year, $1.000 face value bonds at 96. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Sandhill took advantage of favorable prices of its stock to extinguish 5,400 of the bonds by issuing 178.200 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $31 per share on March 1, 2021. Prepare the journal entries needed on the books of Sandhill Company to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) (b) (c) (d) April 1, 2020: issuance of the bonds. October 1, 2020: payment of semiannual interest. December 31, 2020: accrual of interest expense. March 1, 2021: extinguishment of 5,400 bonds. (No reversing entries made.)
Expert Answer:
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
Students also viewed these accounting questions
-
On April 1, 2014, Seminole Company sold 28,980 of its 11%, 15-year, $1,000 face value bonds at 98. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of...
-
At a charity fundraiser, adult tickets sold for $7 each, and children's tickets sold for $2 each. m Write an algebraic equation for the total amount of money raised from ticket sales. How much money...
-
Annapolis Company purchased a $2,000, 7%, 9-year bond at 99 and held it to maturity. The straight line method of amortization is used for both premiums & discounts. What is the net cash received...
-
. 4. Bank overdrafts repayable on * 1 point demand may be included in the cash and cash equivalent balance. True O False
-
What are the requirements for a PMSI to take priority over an earlier perfected interest?
-
Use Exhibit 24.1 to compute Balboa Corporations State F taxable income for the year. Exhibit 24.1:
-
Mind & Motion entered into a real estate purchase contract (REPC) with Celtic Bank to buy a large piece of the banks foreclosed property. Although the county had approved plans to construct...
-
American International Automotive Industries (AIAI) manufactures auto and truck engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America,...
-
You are a co-op student at Modus Biosystems and have been asked to research whether there are ways to save money on their legal liability insurance. Modus currently pays $75,000 a year for a policy...
-
This problem continues the process of preparing the Kipley Company's Employee Payroll Register for the pay period ending January 8th, 20--. In previous chapters, gross wages were computed for each...
-
Consider the circuit in (Figure 1) with both switches open. At t= 0 switch S, is closed while switch Sa is left open. Figure 1 of 1 Closing switch S, connects the R-Licombination in senies with a...
-
IndoSurg is an Indian manufacturing company that specializes in state-of-the-art surgical instruments. Its newest client is Medhealhauser, a German university medical clinic. Medhealhauser's...
-
1. Describe the perfect target market for this product. Please include demographics and values, such as age, family size, gender, approximate income, profession, geographic characteristics of where...
-
Tim, Sim, and Pim are employed as a Customer Care Agent at ABC Company Limited. Over the past years, they worked well as a team. Kim, recently employed to the company, started to feel uncomfortable...
-
SwedFer is a Swedish metal company that produces wrought iron for the gate and railing industries. It is in the middle of negotiating a contract with Amerigate, an American wrought iron casting...
-
15 pts In order for a market to be segmented it must meet certain criteria. This is called the Criteria of Segmentation which includes 4 criteria that the segment must meet: 1. substantial 2....
-
In python 3.6 1. Your game show needs a theme. Consider games like "Family Feud", "So you want to be a millionaire?", or "Are you smarter than a fifth grader?" The hook to each show is some kind of...
-
Explain how two samples can have the same mean but different standard deviations. Draw a bar graph that shows the two samples, their means an standard deviations as error bars. T S
-
LEW Jewellery Corp. uses gold in the manufacture of its products. LEW anticipates that it will need to purchase 500 ounces of gold in October 2020 for jewellery that will be shipped for the holiday...
-
Lu Corp. erected and placed into service an offshore oil platform on January 1, 2020 at a cost of $10 million. Lu is legally required to dismantle and remove the platform at the end of its nine-year...
-
Chorus Aviation Inc. is a Canadian aviation holding company that provides, through Jazz Aviation LP, a significant part of Air Canadas domestic and transborder network. Chorus indicates in Note 1 to...
-
Which of the following types of epigenetic changes may promote cancer? a. DNA methylation b. Covalent modification of histones c. Chromatin remodeling d. All of the above may promote cancer.
-
The underlying cause(s) of epigenetic changes associated with cancer may be a. mutations in genes that encode chromatin-modifying proteins. b. environmental agents that alter the function of...
-
Normal (nonmutant) tumor-suppressor genes often function a. as negative regulators of cell division. b. in the maintenance of genome integrity. c. in the stimulation of cell division. d. as both a...
Study smarter with the SolutionInn App