Sunland Co. is building a new hockey arena at a cost of $2.620,000. It received a...
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Sunland Co. is building a new hockey arena at a cost of $2.620,000. It received a downpayment of $530,000 from local businesses to support the project, and now needs to borrow $2,090,000 to complete the project. It therefore decides to issue $2,090,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%. a Your answer is partially correct. Prepare the journal entry to record the issuance of the bonds on January 1,2019. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final onswer to 0 decimal places eg. 58.971. If no entry is required, select "No Entry" for the occount titles and enter O for the omounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2019 Cash Premlum on Bonds Payable Bonds Payable Prepare a bond amortization schedule up to and including January 1,2023, using the effective interest method. (Round answers to 0 decimal places, eg. 38,548.) Carrying Cash Interest Premium Amortization Amount of Date Paid Expense Bonds 1/1/19 $ %$4 2,0% 1/1/20 229900 1/1/21 229900 1/1/22 229900 1/1/23 229900 eTextbook and Media List of Accounts Assume that on July 1,2022, Sunland Co. redeems half of the bonds at a cost of $1,126,600 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to 0 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.) Date Account Titles and Explanation Debit Credit July 1, 2022 Interest Expense Premium on Bonds Payable cash (To record interest) July 1, 2022 Bonds Payable Premium on Bonds Payable Loss on Redemption of Bonds Cash (To record reacquisition) Sunland Co. is building a new hockey arena at a cost of $2.620,000. It received a downpayment of $530,000 from local businesses to support the project, and now needs to borrow $2,090,000 to complete the project. It therefore decides to issue $2,090,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%. a Your answer is partially correct. Prepare the journal entry to record the issuance of the bonds on January 1,2019. (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final onswer to 0 decimal places eg. 58.971. If no entry is required, select "No Entry" for the occount titles and enter O for the omounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2019 Cash Premlum on Bonds Payable Bonds Payable Prepare a bond amortization schedule up to and including January 1,2023, using the effective interest method. (Round answers to 0 decimal places, eg. 38,548.) Carrying Cash Interest Premium Amortization Amount of Date Paid Expense Bonds 1/1/19 $ %$4 2,0% 1/1/20 229900 1/1/21 229900 1/1/22 229900 1/1/23 229900 eTextbook and Media List of Accounts Assume that on July 1,2022, Sunland Co. redeems half of the bonds at a cost of $1,126,600 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to 0 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.) Date Account Titles and Explanation Debit Credit July 1, 2022 Interest Expense Premium on Bonds Payable cash (To record interest) July 1, 2022 Bonds Payable Premium on Bonds Payable Loss on Redemption of Bonds Cash (To record reacquisition)
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Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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