Supersonic Company was authorized to issue 12 % 10-year bond (authorization date ). Interest on the...

  

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Supersonic Company was authorized to issue 12 % 10-year bond (authorization date ). Interest on the bond is payable semiannually sold to underwriters on April 1, 2020 at 106. The entity amortizes straight line method Required Prepare journal entries for 2020 and 2021 including adjustments at the end of the year. Use memorandum approach Interlink Company was authorized to issue 10-year. 12 % bonds with face amount of P 8.000.000. The bonds are dated Jan 1.2 2020 and interest is payable semiannually on June 20 and Dec 31. The bonds were sold as follows P 5,000,000 at 95 P 2,000,000 at 103 plus accrues interest + with face amount of P 7,000,000 on April 1. 2020 on April 1 and October 1 of each year. The bonds were discount or premium only at the end of the year using Jan 1, 2020 Sept 1, 2020 Required: Prepare journal entries for 2020 and 2021. Marbel Company was authorized to issue 12 % bonds with face amount of P 5,000,000 on April 1, 2020 Interest on bonds is payable semiannually on April 1 and October 1. Bonds mature on April 1, 2025 The entire issue was sold on April 1. 2020 at 98 less bond issue cost of 50,000 On July 1, 2021 bonds of P 2,000,000 face amount were purchased and retired at 99 plus accrued interest Required: (1) How much is the discount on bonds payable at issuance date (2) Prepare journal entries for 2020 and 2021 including adjustments at the end of the year Use memorandum approach Supersonic Company was authorized to issue 12% 10-year bond with face amount of P 7.000.000 on January 1, 2020 (authorization date). Interest on the bond is payable semiannually on June 30 and December 31 of each year. The bonds were sold to underwriters on Jan 1, 2020 at 106 The entity amortizes discount or premium only at the end of the year using straight line method Required Prepare journal entries for 2020 and 2021 including adjustments at the end of the year Use memorandum approach White Company issued P 8.000.000 12% bonds on December 31, 2020 at 96. Interest is payable annually on December 31 Bond maturity December 31 2022 2023 2024 2025 2026 2027 Required: (1) Prepare a schedule showing the annual amortization (2) Prepare journal entries from 2020 to 2023 1,000,000 1.000.000 1,000,000 1.000.000 2.000.000 2.000.000 8.000.000 of the bond discount using bond outstanding method Supersonic Company was authorized to issue 12 % 10-year bond (authorization date ). Interest on the bond is payable semiannually sold to underwriters on April 1, 2020 at 106. The entity amortizes straight line method Required Prepare journal entries for 2020 and 2021 including adjustments at the end of the year. Use memorandum approach Interlink Company was authorized to issue 10-year. 12 % bonds with face amount of P 8.000.000. The bonds are dated Jan 1.2 2020 and interest is payable semiannually on June 20 and Dec 31. The bonds were sold as follows P 5,000,000 at 95 P 2,000,000 at 103 plus accrues interest + with face amount of P 7,000,000 on April 1. 2020 on April 1 and October 1 of each year. The bonds were discount or premium only at the end of the year using Jan 1, 2020 Sept 1, 2020 Required: Prepare journal entries for 2020 and 2021. Marbel Company was authorized to issue 12 % bonds with face amount of P 5,000,000 on April 1, 2020 Interest on bonds is payable semiannually on April 1 and October 1. Bonds mature on April 1, 2025 The entire issue was sold on April 1. 2020 at 98 less bond issue cost of 50,000 On July 1, 2021 bonds of P 2,000,000 face amount were purchased and retired at 99 plus accrued interest Required: (1) How much is the discount on bonds payable at issuance date (2) Prepare journal entries for 2020 and 2021 including adjustments at the end of the year Use memorandum approach Supersonic Company was authorized to issue 12% 10-year bond with face amount of P 7.000.000 on January 1, 2020 (authorization date). Interest on the bond is payable semiannually on June 30 and December 31 of each year. The bonds were sold to underwriters on Jan 1, 2020 at 106 The entity amortizes discount or premium only at the end of the year using straight line method Required Prepare journal entries for 2020 and 2021 including adjustments at the end of the year Use memorandum approach White Company issued P 8.000.000 12% bonds on December 31, 2020 at 96. Interest is payable annually on December 31 Bond maturity December 31 2022 2023 2024 2025 2026 2027 Required: (1) Prepare a schedule showing the annual amortization (2) Prepare journal entries from 2020 to 2023 1,000,000 1.000.000 1,000,000 1.000.000 2.000.000 2.000.000 8.000.000 of the bond discount using bond outstanding method

Answer rating: 100% (QA)

QUESTION ONE Supersonic Company 2020 April 1 Bond Issuance Debit Cash 7420000 7000000 106 Credit Bonds Payable 7000000 Credit Premium on Bonds Payable 420000 7420000 7000000 2021 April 1 Semiannual In... View the full answer