Prepare the corporation’s journal entry to record the reacquisition of the bonds.
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On January 1, 2020, Larkspur Corporation redeemed $620,000 of bonds at 97. At the time of redemption, the unamortized premium was $18,600.
Prepare the corporation’s
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- On January 1, 2020, Riverbed Corporation redeemed $400,000 of bonds at 96. At the time of redemption, the unamortized premium was $12,000. Prepare the corporation’s journal entry to record the reacquisition of the bonds. (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. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Account Titles and Explanation Debit Creditenter an account titleenter a debit amountenter a credit amountenter an account titleenter a debit amountenter a credit amountenter an account titleenter a debit amountenter a credit amountenter an account titleenter a debit amountenter a credit amountOn January 1, 2025, Splish Corporation redeemed $520,000 of bonds at 99. At the time of redemption, the unamortized premium was $15,600. Prepare the corporation's journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit CreditOn January 1, 2025, Tamarisk Corporation redeemed $460,000 of bands at 98. At the time of redemption, the unamortized premium was $13,800. Prepare the corporation's journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
- Tamarisk Corporation has municipal bonds classified as a held-to-maturity at December 31, 2025. These bonds have a par value of $791,000, an amortized cost of $791,000, and a fair value of $709,000. The company believes that impairment accounting is now appropriate for these bonds. (a) Prepare the journal entry to recognize the impairment. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (b) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later What is the new carrying value of the municipal bonds? New carrying value $ (c) Yes Given that the maturity value of the bonds is $791,000, should Tamarisk Corporation amortize the difference between the carrying amount and the maturity value over the life of the bonds? eTextbook and Media List of Accounts Save for Later Debit Account…Crane Corporation issued $402,000 of 4%, 10-year bonds on January 1, 2024, at face value. Interest is payable annually on January 1, 2025. (a) Prepare the journal entry to record the issuance of the bonds. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 1, 2024 Account Titles List of Accounts Save for Later Debit Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. Credit Submit AnswerJ Marigold, Inc., purchased $372,000 of its bonds at 95 on June 30, 2020, and immediately retired them. The carrying value of the bonds on the retirement date was $360,000. The bonds pay annual interest and the interest payment due on June 30, 2020, has been made and recorded. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30
- Nash Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These bonds have a par value of $826,000, an amortized cost of $826,000, and a fair value of $754,000. The company believes that impairment accounting is now appropriate for these bonds. (a) Prepare the journal entry to recognize the impairment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record the impairment enter a debit amount enter a credit amount enter an account title to record the impairment enter a debit amount enter a credit amount (To record the impairment.)On May 1, 2020, Stellar Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the fair value of the warrants cannot be determined.(a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (b) Assume the same facts as part (a), except that the warrants had a fair value of $25. Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.)On May 1, 2020, Pearl Company issued 2,500 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the fair value of the warrants cannot be determined.(a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Assume the same facts as part (a), except that the warrants had a fair value of $24. Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…
- Presented below are two independent situations. For each of the independent situations presented below, prepare the journal entry to record the retirement or conversion of the bonds. (a) Sandra Corporation purchased $780,000 of its bonds on June 30, 2020, of the bonds on the retirement date was $700,000. The bonds pay annual has been made and recorded. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) at 102 and immediately interest and the interest retired them. The carrying value payment due on June 30, 2020,On May 1, 2020, Larkspur Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined.(a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Assume the same facts as part (a), except that the warrants had a fair value of $35. Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5…On May 1, 2020, Marigold Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 97, but the fair value of the warrants cannot be determined. (a) Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Cash 1,938,000 Discount on Bonds Payable 57,000 Bonds Payable 1,900,000 Paid-in Capital-Stock Warrants 95,000 W ASA * FA C F5 F9 F6