Sunland Inc. issued $150,000, 5-year bond on January 1, 2024 paying 6% interest on a semi-annual...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sunland Inc. issued $150,000, 5-year bond on January 1, 2024 paying 6% interest on a semi-annual basis every January 1 and July 1. Prepare the first-year journal entries for the bond issue and interest expense assuming that the company uses the effective interest method, a market interest rate of 5% and has a year-end of December 31, 2024. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.) Account Titles and Explanation Date January 1 Cash Bonds Payable July 1 Interest Expense Bonds Payable Cash December 31 Interest Expense Interest Payable Bonds Payable eTextbook and Media List of Accounts Debit 156,564 3914 Credit 156,564 Sunland Inc. issued $150,000, 5-year bond on January 1, 2024 paying 6% interest on a semi-annual basis every January 1 and July 1. Prepare the first-year journal entries for the bond issue and interest expense assuming that the company uses the effective interest method, a market interest rate of 5% and has a year-end of December 31, 2024. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.) Account Titles and Explanation Date January 1 Cash Bonds Payable July 1 Interest Expense Bonds Payable Cash December 31 Interest Expense Interest Payable Bonds Payable eTextbook and Media List of Accounts Debit 156,564 3914 Credit 156,564
Expert Answer:
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Journalize the following transactions for Tanaka Company for June 2016 the companys first month of operations Credit account titles are automatically indented when the amount is entered Do not indent...
-
help me pls P acquired \( 80 \% \) of the capital of S on 1 January 2021. At the year end 31 December 2021 the two companies have the following statements of financial position: Notes 1....
-
Using the data presented in BE12-2, assume that the bonds were sold for $194,000 on January 2, 2016. Record the sale of the bonds?
-
Read Tweeting Social Change:How Social Media Are Changing Nonprofit Advocacy by Guo and Saxton.According to the authors, how do nonprofit organizations use social media to advocate for social causes?
-
Refer to the information in Exercise 17-1. Assume that the following information is available for the companys two products for the first quarter of 2017. Required Compute activity rates for each...
-
Naylor Company had $210,000 of net income in 2013 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data...
-
2. Draw one (1) accurate graph to show the production possibilities frontier for the head of household's own child PPFo given a budget of T=20Eo+20Co when E is units of education and C is units of...
-
There is a state table of a synchronous network. It has 2 inputs (X1, X2) and one output (Z). The network has 4 states (A, B, C, D). It begins its operation X1, X2 = 1,1 and y (present state ) ="C"....
-
Robinson, Inc. reports the following aging schedule for accounts receivable at December 31, 2015. Probability Days outstandingAmountof collection 0 30$87,50098% 31 60$13,50068% 61 90$9,30030% over...
-
What is the last value of Number 1 and Counter after executing the following C++ statements int Counter = 0, Number1= 0; do{ if(Counter % 5 == 0){ cout <
-
A piece of equipment is purchased on 1/1/2009 and booked for $8,000 with a salvage value of $500 and a useful life of 7 years. For the first 2 years double declining balance was used. Starting in...
-
Slater Company uses the cash basis of accounting. Slater Company collected $950,000 from its customers during 2015. Customers owed Slater $150,000 of accounts receivable at the beginning of 2015, and...
-
Viviana is a self-employed Therapist whose 2019 net earnings from her trade or business (before the H.R. 10 plan contribution but after the deduction for one-half of self-employment taxes) is...
-
Listed below (in alphabetical order) are the general ledger and budgetary accounts for the City of Walland. All balances are year end, unless otherwise noted. All accounts have a normal balance. At...
-
Velshi Printers has contracts to complete weekly supplements required by fortysix customers. For the year 2018, manufacturing overhead cost estimates total $600,000 for an annual production capacity...
-
BHP Billiton (GBR) is the world's largest diversified natural resources company. The company extracts and processes minerals, oil, and gas from its production operations located primarily in...
-
Why might a company become involved in an interest rate swap contract to receive fixed interest payments and pay variable?
-
This year, Gumowski Company has each of the following items in its income statement. 1. Gross profits on installment sales. 2. Revenues on long-term construction contracts. 3. Estimated costs of...
-
Obtain a copy of the ACAS Code of Practice 1: Disciplinary and Grievance Procedures (2009). Use this, and our suggestions in this chapter, to rewrite or modify either of the procedures you used for...
-
One of the disadvantages of the IEEET1 exciter is following a fault the terminal voltage does not necessarily return to its prefault value. Using PowerWorld Simulator case Problem 12_3 determine the...
-
Rework Example 13.6 if the source impedance at the sending end of line \(\mathrm{A}\) is \(\mathrm{Z}_{\mathrm{G}}=\mathrm{Z}_{\mathrm{A}} / 4=100 \Omega\), and the receiving end of line...
Study smarter with the SolutionInn App