Prepare all necessary journal entries for the following dates related to the bonds of Concrete Restoration,...
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Prepare all necessary journal entries for the following dates related to the bonds of Concrete Restoration, Inc. March 1, 2020: Concrete Restoration issued $1,200,000, 4% bonds at 104. Interest is payable semi-annually on March 1st, and September 1st. The bonds are dated to mature on March 1, 2030. September 1, 2020: Concrete Restoration paid interest on the bonds and also amortized the premium using straight-line amortization. December 31, 2020: Prepare any necessary year end adjusting entries. Note: Concrete Restoration's year end is December 31st. Hint: don't forget to prorate based on the amount of time that has passed since the last interest payment and premium amortization on September 1st. March 1, 2021: Concrete Restoration paid all interest due, amortized the premium, and because of sudden changes in financial market conditions, they immediately retired $600,000 of the bonds at 106. This represented one half of the original amount of the bonds issued one year ago. Prepare all necessary journal entries for the following dates related to the bonds of Concrete Restoration, Inc. March 1, 2020: Concrete Restoration issued $1,200,000, 4% bonds at 104. Interest is payable semi-annually on March 1st, and September 1st. The bonds are dated to mature on March 1, 2030. September 1, 2020: Concrete Restoration paid interest on the bonds and also amortized the premium using straight-line amortization. December 31, 2020: Prepare any necessary year end adjusting entries. Note: Concrete Restoration's year end is December 31st. Hint: don't forget to prorate based on the amount of time that has passed since the last interest payment and premium amortization on September 1st. March 1, 2021: Concrete Restoration paid all interest due, amortized the premium, and because of sudden changes in financial market conditions, they immediately retired $600,000 of the bonds at 106. This represented one half of the original amount of the bonds issued one year ago.
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Answer rating: 100% (QA)
Part 1March 1 2020 Workings Cash required 104100 1200000 1248000 Premium on bonds payable 1248000 12... View the full answer
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
Posted Date:
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