Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. prepare the adjusting journal entry on December 31, 2020, to record interest expense. what is the account title and explanation? what is debit or credited?

Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. prepare the adjusting journal entry on December 31, 2020, to record interest expense. what is the account title and explanation? what is debit or credited?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14EA: Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1,...

See similar textbooks

Related questions

Q: April 1st, 2019, Candy Corp issued $1,400,000, 5%, 10 year bonds at face value. The bonds were dated…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Chowan Corporation issued $100,000 of 10% bonds dated January 1, 2019, for $96,832.72 on January 1,…

A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

Q: Homwork question 5- chapter 9

A: Calculate the amount of interest expense:

Q: On January 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: On June 1, 2020, Bramble Corp. issued $8,320,000, 6% bonds for $8,154,640, which includes accrued…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Sweetwood Company issues $5,000,000, 10-year, 9% bonds at 96, with interest payable annually on…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: ) On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which…

A: The bonds payable are issued at premium when market rate is less than the coupon rate of bonds…

Q: On October 1, 2021, Cullumber Company issued $520,000, 6%, 10-year bonds at face value. The bonds…

A: Bonds are issued by the company to increase the funds of the company. When a company issues bonds,…

Q: On January 1, 2019 Sandhill Corporation issued $550,000, 7%, 5-year bonds at face value. Interest is…

A: Introduction: Journal entries serve as the primary building blocks for answering these and other…

Q: On January 1, 2020, Skysong Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: On October 1, 2021, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were…

A: Interest accrued on dec 31, 2021 = face value x rate of interest x no. of months/12 = $864000 x 8% x…

Q: Olivia Company began 2019 with a Retained Earings account balance of $180,000. During 2019, the…

A: Retained Earnings statement- A retained earnings statement is a financial statement that accounts…

Q: On January 1, 2020, Morgan Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at…

A: Bond's issued at more than face value are said to be bonds issued at premium.

Q: On January 1, 2020, Stellar Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were…

A: >Bonds Payable are the source of finance for the companies. >The bondholders are…

Q: Nasreen Company issues $2,000,000, 10-year, 8% bonds at 97, with interest payable each January 1.…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year bonds dated…

A: If the bonds are issued at discount or at premium, the discount or premium on the bonds payable is…

Q: What amount of interest expense will be recorded in the December 31, 2021, annual income statement?

A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: On January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value).…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On January 1, 2020, Ironman Steel issued $800,000, 8-year bonds for $861,000. The stated rate of…

A: Calculations:

Q: Sheffield Corp. issued 2,100, 6%, 5-year, $1,000 bonds dated January 1, 2019, at 100. Interest is…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: January 1, 2020, Cullumber Enterprises issued 9%, 20-year bonds with a face amount of $5,350,000 at…

A: bonds are considered as a debt instrument that is issued by the company in order to raise the money…

Q: Pharoah Inc. issues $4,500,000, 5-year, 14% bonds at 104, with interest payable annually on January…

A: Computation of premium on bond payable: Premium on bond…

Q: Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2019, for $111,283.65 on January 1,…

Q: On January 1, 2020, Flounder Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds…

A: Solution: Journal Entries - JWS Corporation Date Particulars Debit Credit 1-Jan-20 Cash Dr…

Q: crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…

A: Cash received = 2,100 bonds x $1,000 per bond x 100% = $2,100,000

Q: On January 1, 2021, Solo Inc. issued 1,000 of its 8%, $1,000 bonds at 98. Interest is payable…

A: In this question we have been asked to calculate the carrying value of the bond, for which we have…

Q: On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The…

A: Amount received from the bond issuance = (Face value of bonds x issue price/100) - bond issue cost…

Q: Hawar Company issued $400,000 of bonds on January 1, 2020. Required: Prepare the journal entry to…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: On January 1, 2020, PS ind issued P600,000 of 7% bonds, due in 10 years. The bonds were issued for…

A: Introduction: Journal entries are the basis of double accounting rules, which have been used for…

Q: On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year bonds dated…

A: Bonds are kinds of instrument issued by company acknowledging the debt due by company to outsider.…

Q: n July 31, 2021, Sheridan Inc. issued $430,000 of 5-year, 4% bonds at 104. Interest is payable…

A: To begin, preserving detailed records of your transactions helps to organize the data in your…

Q: On March 1, 2021, Patriot Company issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000…

A: Formula: Cash received on issue of bonds = Face value of bond x Issue rate of bonds

Q: On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of…

A: Journal is the book of original entry in which all the transactions relating to the business are…

Q: Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On August 31, 2021, DASHER Company issued at 104 plus accrued interest, three thousand 10% bonds…

A: What is meant by Journal entries? It is the first step to record the financial transactions in the…

Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: On January 1, 2020, Sheridan Company issued $351,500, 6%, 5-year bonds at face value. Interest is…

A: Interest expense = Par value of bonds x Interest rate = $351,500 x 6% = $21,090

Q: *Please complete parts E and F***** On May 1, 2022, Cucumber Corporation issued $860,000, 12%,…

A: The process of documenting commercial transactions for the first time in the books of accounts is…

Q: On January 1, 2018, Nebal Manufacturing Corporation issued $5,000,000, 10%, 6-year bonds dated…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On January 1, 2020, Ivanhoe Company issued $ 2,330,000, 9%, 10-year bonds at $ 2,486,345. This price…

A: Bonds are a form of loan or liability for the business, on which regular interest payments needs to…

Q: Nasreen Company issues $2,000,000, 10-year, 8% bonds at 97, with interest payable each January 1.…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Some of the questions are in the screenshots to make it easier! The following…

A: a. Record general entry for payment of bond interest as shown below:

Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…

A: Solution: Face value of bond = P5,000,000 Issue price of bond = P4,695,000

Q: Stinson Corporation issued $520,000 of 5%, 10-year bonds payable on March 31, 2019. The market…

A: Bonds are the financial instrument used by an entity to borrow funds from the financial market. It…

Q: Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2019, for $111,283.65 on January 1,…

A: Journal entries refers to the process of systematic recording of the financial transactions of a…

Q: On January 1, 2018, Kohl Corporation issued $700,000, 8%, 10-year bonds at face value. Interest is…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: Debt Issued at a Discount (Straight Line) On January 1, 2020, Drew Company issued $350,000, 5-year…

A: Given information is: On January 1, 2020, Drew Company issued $350,000, 5-year bonds for $320,000.…

Question

Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1.

prepare the adjusting journal entry on December 31, 2020, to record interest expense.

what is the account title and explanation?

what is debit or credited?

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.
ACCRUED INTEREST RECEIVABLE The following is a list of outstanding notes receivable as of December 31, 20--: REQUIRED 1. Compute the accrued interest at the end of the year. 2. Prepare the adjusting entry in the general journal.
Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Prepare the journal entry on January 1, 2021, to record interest paid. what is the account title or explanation ? what is debit or credited ?
Wildhorse Corporation issued 4,100, 6%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. 1.Prepare the adjusting journal entry on December 31, 2020, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020
Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1. 1.Prepare the journal entry to record the payment of interest on January 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2021
The balance sheet for Ivanhoe Consulting reports the following information on July 1, 2020. Long-term liabilities Bonds payable $4,500,000 Less: Discount on bonds payable 315,000 $4,185,000 Ivanhoe decides to redeem these bonds at 101 after paying annual interest.Prepare the journal entry to record the redemption on July 1, 2020. what is the account title or explanation? what is debit or credited?
The balance sheet for Miley Consulting reports the following information on July 1, 2020. Long-term liabilities Bonds payable $1,000,000 Less: Discount on bonds payable 60,000 $940,000 Miley decides to redeem these bonds at 101 after paying annual interest.Prepare the journal entry to record the redemption on July 1, 2020. What is the account title or explanation? what is debit or credited ?
Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1. 1. Prepare the journal entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020
Nasreen Company issues $2,000,000, 10-year, 8% bonds at 97, with interest payable each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020. What is the account title or explanation ? What is debit or credited ?
Meera Corporation issued 4,000, 8%, 5-year, $1,000 bonds dated January 1, 2019, at 100. Interest is paid each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 eTextbook and Media List of Accounts Prepare the adjusting journal entry on December 31, 2019, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31
On January 1, 2022, Sunland Company issued $420,000, 12%, 10-year bonds at face value. Interest is payable annually on January 1. (a) (b) Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Dec. 31, 2022 Account Titles and Explanation Debit Credit