I am stuck with an accounting problem and would LOVE your help... Please help me with these mini problems... They all go together, I am just confused at the moment on how I would write these out.... ANY HELP IS MUCH APPRECIATED!!!!!! IF YOU GET IT RIGHT... I have a surprise for you!! (not only ten points but something else!!!)
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"On October 1, 2009, AZE Corp. issued $854,400, 9%, 10-year bonds at face value. The bonds were dated October 1, 2009, and pay interest annually on October 1. Financial statements are prepared annually, on December 31"
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(a)Prepare the journal entry to record the issuance of the bonds.
OCT 1...
DR: CASH --- $854,400
CR: BONDS PAYABLE --- $854,400
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(b)Prepare the adjusting entry to record the accrual of interest on December 31, 2009.
DEC 31..
DR: BOND INTEREST EXPENSE --- $19,224
CR: BOND INTEREST PAYABLE --- $19,224
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(c)Complete the partial balance sheet below on December 31, 2009.
Current Liabilities: _______ ??? \\
Long-Term Liabilities: _____??? //// [[help on these two??]]
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(d)Prepare the journal entry to record the payment of interest on October 1, 2010.
DR: \\
DR: \\||||| [[Help??]]
CR: ///
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(e)Prepare the adjusting entry to record the accrual of interest on December 31, 2010.
DR: BOND INTEREST EXPENSE --- $[??]
CR: BOND INTEREST PAYABLE --- $[??]
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Assume that on January 1, 2011, AZE pays the accrued bond interest and calls the bonds. The call price is 102. Record the payment of interest and redemption of the bonds.
Jan 1.
DR: ...???
CR: ...???
(To record the payment of accrued interest.)
Jan 1.
DR: Bonds Payable --- $[??]
DR: Loss on bond redemption --- $[??]
CR: Cash --- $[??]
---
"On October 1, 2009, AZE Corp. issued $854,400, 9%, 10-year bonds at face value. The bonds were dated October 1, 2009, and pay interest annually on October 1. Financial statements are prepared annually, on December 31"
---
(a)Prepare the journal entry to record the issuance of the bonds.
OCT 1...
DR: CASH --- $854,400
CR: BONDS PAYABLE --- $854,400
---
(b)Prepare the adjusting entry to record the accrual of interest on December 31, 2009.
DEC 31..
DR: BOND INTEREST EXPENSE --- $19,224
CR: BOND INTEREST PAYABLE --- $19,224
---
(c)Complete the partial balance sheet below on December 31, 2009.
Current Liabilities: _______ ??? \\
Long-Term Liabilities: _____??? //// [[help on these two??]]
---
(d)Prepare the journal entry to record the payment of interest on October 1, 2010.
DR: \\
DR: \\||||| [[Help??]]
CR: ///
---
(e)Prepare the adjusting entry to record the accrual of interest on December 31, 2010.
DR: BOND INTEREST EXPENSE --- $[??]
CR: BOND INTEREST PAYABLE --- $[??]
---
Assume that on January 1, 2011, AZE pays the accrued bond interest and calls the bonds. The call price is 102. Record the payment of interest and redemption of the bonds.
Jan 1.
DR: ...???
CR: ...???
(To record the payment of accrued interest.)
Jan 1.
DR: Bonds Payable --- $[??]
DR: Loss on bond redemption --- $[??]
CR: Cash --- $[??]