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Free_Kalibri [48]
3 years ago
15

The following section is taken from Ivanhoe's balance sheet at December 31, 2021. Current liabilities Interest payable $ 47,500

Long-term liabilities Bonds payable (8%, due January 1, 2025) 575,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) Journalize the payment of the bond interest on January 1, 2022. (b) Assume that on January 1, 2022, after paying interest, Ivanhoe calls bonds having a face value of $170,000. The call price is 106. Record the redemption of the bonds. (c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.
Business
1 answer:
Alinara [238K]3 years ago
8 0

Answer and Explanation:

The Journal Entry is shown below:-

1. Bond Interest Payable $47,500

            To Cash $47,500

(Being payment of interest on bonds is recorded)

2. Bonds Payable Dr, $170,000

Loss on Redemption of Bonds Dr, $10,200

($180,200 - $170,000)

               To Cash $180,200

($170,000 × 106%)

(Being redemption of bonds is recorded)

3. Bond Interest Expense $32,400

($575,000 - $170,000) × 8%

             To Bond Interest Payable $32,400

(Being accrue interest on remaining bonds is recorded)

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Answer: Resource levelling

Explanation:

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3 years ago
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Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this? Group of answer
Minchanka [31]

Answer: c. A bilateral contract

Explanation:

In a bilateral contract, the parties involved promise to both perform duties to the other which will make them both an obligor and an obligee.

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Aaron both owes a duty to sell the boat to Matt as well as being owed by Matt the duty to buy his boat. The same goes for Matt thus making this a bilateral contract.

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3 years ago
The stockholders' equity section of the balance sheet for Potawatomi Corporation appeared as follows before its recent stock div
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Answer:

Common stock = $110,000

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= $100,000 + 10,000 = $110,000

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