Presented below are selected transactions on the books of Simonson Corporation.
ID: 2456968 • Letter: P
Question
Presented below are selected transactions on the books of Simonson Corporation.
Prepare journal entries for the transactions above. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
May 1, 2014
Dec. 31, 2014
(To record the interest)
(To amortize the premium)
Jan. 1, 2015
Apr. 1, 2015
Dec. 31, 2015
(To record the interest)
(To amortize the premium)
May 1, 2014 Bonds payable with a par value of $963,600, which are dated January 1, 2014, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 10% (payable annually at January 1), and mature January 1, 2024. (Use interest expense account for accrued interest.) Dec. 31 Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization.) Jan. 1, 2015 Interest on the bonds is paid. April 1 Bonds with par value of $369,300 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.) Dec. 31 Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized.Explanation / Answer
Presented below are selected transactions on the books of Simonson Corporation.
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