the text provided does not contain any spelling typographical grammatical ocr or mathematical er

Name: the text provided does not contain any spelling typographical grammatical ocr or mathematical errors 37977
Uploaded: 2023-11-25T19:31:58-08:00
Duration: 3 min 18 s
Channel: Akash M
Description: the text provided does not contain any spelling typographical grammatical ocr or mathematical errors 37977

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On January 1, 2019, Culver and Lois Company purchased 12% bonds having a maturity value of $252,000 for $271,105.56. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2019, and mature on January 1, 2024, with interest receivable on December 31 of each year. Culver and Lois Company uses the effective interest method to allocate unamortized discount or premium. The bonds are carried at FV-OCI. The fair value of the bonds at December 31 of each year-end is as follows: 2019 $269,000 2020 $260,000 (a) Prepare the journal entries to record the interest received and recognition of fair value for 2019. (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. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record collection of interest) Dec. 31 (To record fair value adjustment)

Akash M.

mc-qu150-on-january-1a-company-issues-5-on-january-1a-company-issues-bonds-dated-january-1-with-a-par-value-of-260000the-bonds-mature-in-5-yearsthe-contract-rate-is-7and-interest-is-paid-sem-88545

Akash M.

Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $32,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $25,601,920. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries: For a compound transaction, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. Year 1, July 1 Cash Discount on Bonds Payable Bonds Payable 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) Year 1, Dec. 31 Interest Expense Discount on Bonds Payable Cash b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) Year 2, June 30 Interest Expense Discount on Bonds Payable Cash 3. Determine the total interest expense for Year 1. $

Adi S.

Transcript

00:01 Here, bondholder's yield is equal to 10 % mature as on january 2027.

00:21 So here, amortization table from 1 .1 .2022 to 31 .12 .2027.

00:33 Now, date, cash received, interest, revenue, premium, amortized, carrying amount of bonds.

01:06 So for 1 .1 .2022, there is only carrying amount of bonds that is 271 ,105 .56.

01:21 Now for 1 .1 .2023, here 32040, here 27110 .556, then here 31294439, 9 and here 267976 .116.

01:44 Now for 1 .1 .2024, here 320240, here 26797 .6116, here 3442 .3884 and here 264533 .72...

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