On January 1, InnoSolutions, Inc. Issued $170,000 in bonds at face value. The bonds have a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, InnoSolutions, Inc. Issued $170,000 in bonds at face value. The bonds have a stated interest rate of 5 percent. The bonds mature in ten years and pay interest once per year on December 31. Required: 1. Prepare the journal entry to record the bond issuance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for issuance of bond. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal 2. Prepare the journal entry to record the interest payment on December 31. Assume no interest was accrued earlier in the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction llat Journal entry worksheet Record the interest payment on December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal 3. Assume the bonds were retired immediately after the first interest payment at a quoted price of 103. Prepare the Journal entry to record the early retirement of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the early retirement of the bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry Vlew general journal On January 1, InnoSolutions, Inc. Issued $170,000 in bonds at face value. The bonds have a stated interest rate of 5 percent. The bonds mature in ten years and pay interest once per year on December 31. Required: 1. Prepare the journal entry to record the bond issuance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for issuance of bond. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal 2. Prepare the journal entry to record the interest payment on December 31. Assume no interest was accrued earlier in the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction llat Journal entry worksheet Record the interest payment on December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal 3. Assume the bonds were retired immediately after the first interest payment at a quoted price of 103. Prepare the Journal entry to record the early retirement of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the early retirement of the bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry Vlew general journal
Expert Answer:
Answer rating: 100% (QA)
Journal entry to record issuance of bonds at face valu... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A $1,000 corporate bond has a stated interest rate of 8 percent. Interest on the bond is paid semiannually. Required: (a) How much interest will be paid on each interest payment date? (b) Suppose...
-
Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.
-
C. The breaking strength of 80 "test pieces" of a certain alloy is given in the following table, the unit being given to the nearest thousand grams per square inch. Breaking strength 44-46 46-48...
-
Suppose that in a wave of pessimism, housing prices fall by 10% across the entire economy. a. Has the stock of real assets of the economy changed? b. Are individuals less wealthy? c. Can you...
-
A newly hired internal auditor discovered that immaterial thefts by employees are pervasive in the company; employees take books from the companys library, tools from the companys laboratories,...
-
In Exercises 1 through 20, compute all first-order partial derivatives of the given function. f(x, y) e -x 12
-
The gas entering a rocket nozzle has a stagnation pressure of \(1500 \mathrm{kPa}\) and a stagnation temperature of \(3000^{\circ} \mathrm{C}\). The rocket is traveling in the still Standard...
-
In a classic study, Milgram et al. lost stamped envelopes with fictitious addresses (Medical Research Association, Personal Address, Friends of Communist Party, and Friends of Nazi Party).* One...
-
Coherent light from a laser diode is emitted through a rectangular area 3.0m x 1.5m (horizontal-by-vertical). If the laser light has a wavelength of 680 nm, determine the angle between the first...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
How might Xerox be able to address the shortage of mechanical design engineers identified by the aggregate project planning analysis shown in Exhibit 4-9? List five ways Xerox could increase the...
-
Longhorn Company (70% WI) and Aggie Company (30% WI) own a joint working interest in the Dowling Field. There is a 1/8 royalty owner. The 1/8 royalty is shared proportionally by Longhorn and Aggie....
-
Two leases in far West Texas are being combined to form the West End Unit. REQUIRED: a. Determine the participation factors for each party, assuming the participation factors are based on the acreage...
-
Heagy Oil Company has production on a lease in Louisiana with the following ownership interest: During April, 5,000 (gross) barrels of oil (after correction for temperature, gravity, and BS&W) were...
-
Ashley Pineda, featured at the beginning of this chapter, is a new home sales representative for the PulteGroup (see website at www.pultegroupinc.com). The company engages in homebuilding and...
-
Differentiate between tax evasion and tax avoidance.
-
Quality Cabinets Inc. (Quality) manufactures custom kitchen cabinets from its location in Squamish, British Columbia. The cabinets are then sold to contractors who install them in kitchens. Bruce...
-
Consider the reaction of acetic acid in water CH 3 CO 2 H(aq) + H 2 O(l) CH3CO 22 (aq) + H 3 O + (aq) where Ka 5 1.8 3 1025. a. Which two bases are competing for the proton? b. Which is the stronger...
-
Following is the income statement of Jericho Co. for its most recent scal year. Sales........................................................ $267,000 Cost of Goods...
-
Following is a condensed version of the 2009 income statement of Petersen Company. Sales............................................................. $ 2,176,200 Cost of Goods...
-
Following are price-earnings (P/E) ratios on December 10, 2008, for several prominent companies: P/E Ratio Pfizer Inc....................................................... 10.6 Lowes...
-
Speeds of bullet trains. Determine whether the data are qualitative or quantitative. Explain your reasoning.
-
Widths of veins in different species of leaves. Determine whether the data are qualitative or quantitative. Explain your reasoning.
-
American Standard Code for Information Interchange (ASCII) codes. Determine whether the data are qualitative or quantitative. Explain your reasoning.
Study smarter with the SolutionInn App