Business, 11.02.2021 21:50 allisonatalie6654

On September 30, 2012, Blossom Company issued 9% bonds with a par value of $470,000 due in 20 years. They were issued at 98 and were callable at 105 at any date after September 30, 2017. Because Blossom Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30, 2018, and to issue new bonds. New 8% bonds were sold in the amount of $760,000 at 103; they mature in 20 years. Blossom Company uses straight-line amortization. Interest payment dates are March 31 and September 30. a. Prepare journal entries to record the redemption of the old issue and the sale of the new issue on September 30, 2018.
Bonds Payable
Loss on Redemption
Discount on Bonds Payable
Cash
Cash
Premium on Bonds Payable
Bonds Payable
b. Prepare the entry required on December 31, 2018, to accrue interest and amortize the premium on the bonds.
Interest Expense
Premium on Bonds Payable
Interest payable

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 10:10

True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity

Answers: 3

Answer

Business, 22.06.2019 21:30

The adjusted trial balance for china tea company at december 31, 2018, is presented below:

Answers: 1

Answer

Business, 22.06.2019 23:00

Which of the following is true of website content? it should be refreshed periodically to keep customers coming back. once the content has been written and proofread it shouldn't be changed. grammatical errors are not a problem because the customer visits the site to purchase a product, not check the site's grammar. it should be limited to text and shouldn't include multimedia.

Answers: 1

Answer

Business, 23.06.2019 04:40

Which is not true of birthday and/or annual review automatics? a. the purpose is to trigger a telephone call for a face-to-face meeting.b. quarterly automatic contacts decrease cross-sales and lead to reduced referrals.c. you are expected to stay in touch with all your active prospects and clients through two personal contacts each year?

Answers: 1

Answer

You know the right answer?

On September 30, 2012, Blossom Company issued 9% bonds with a par value of $470,000 due in 20 years....

Questions