Prepare journal entries to record issuance of bonds


P10-8A Prepare journal entries to record issuance of bonds, interest, straight-line amortization, and balance sheet presentation and balance sheet presentation

Yung Corporation sold $2,000,000, 7%, 5 year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums or discounts.

Instructions

(a) Prepare all necessary journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming the bond sold at 102.

(b) Prepare journal entries as in part (a) assuming the bonds sold at 97.

(c ) Show the balance sheet presentation for the bond issue at December 31, 2014, using (1) the 102 selling price, and then (2) the 97 selling price

NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?".

P10-8B Prepare journal entries to record issuance of bonds, interest, straight-line amortization, and balance sheet presentation
and balance sheet presentation

Holmes Corporation sold $2,200,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest
on January 1. Holmes Corporation uses the straight-line method to amortize bond premiums or discounts.

Instructions

(a) Prepare all necessary journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming the bond sold at 102.

(b) Prepare journal entries as in part (a) assuming g the bonds sold at 98.

(c ) Show the balance sheet presentation for the bond issue at December 31, 2014, using (1) the 102 selling price, and then (2) the 98 selling price

NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

P10-10A Prepare journal entries to record issuance of bonds, payment of interest, and amortization of bond discount using effective interest method

On January 1, 2014, Lock Corporation issued $1,800,000 face value, 5%, 10 year bonds at $1,667,518. This price resulted in an effective interest rate of 6% on the bonds. Lock uses the effective-interest method to amortize bond premium or discount.

The bond pay annual interest January 1.

Instructions

(Round all computations to the nearest dollar.)

(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2014.

(b) Prepare an amortization table through December 31, 2016 (three interest periods) for this bond issue.

(c ) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2014.

(d) Prepare the journal entry to record the payment of interest on January 1, 2015.

(e ) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2015.

NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?".

Attachment:- Excel.xlsx

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Managerial Accounting: Prepare journal entries to record issuance of bonds
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