Prepare journal entries for the transactions above. TD F147 (Entries for Life Cycle of Bonds) On April 1, 2014, Seminole Company sold 15000 of ts 1%, EB 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October and the company uses the straight-line method of bond discount amortization. On March 1, 2015, Seminole tok advantage ‘of favorable prices of its stock to extinguish 6/00 ofthe bonds ising 20,00 shares oft 10 pr vale ‘common stock. At this time, the acrid interest was pid in cash. The company’s tock was sling for ‘31 per share on March 1, 2015. Instructions LL ppm. (b) October 1, 2014: payment of semiannual interest. Cr pomeneg etre es ncaet ne ent eee aio by bsuing a 40000 zrointeest oan note, Fite open ot cea noc ibis encom co couse arn J a : Le a GG pam trl te dear need © Pee ifeaivesieret[D PI46 Assuance of Bonds between Interest Dates, Straight-Line, Redemption) Presented below a) Bp selected transactions on the books of Simonson Corporation. May 1, 2014 Bonds payable with a par value of $900,000, which are dated January 1, 2014, are sold at 1106 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually January 1), and mature January 1, 2024. (Use interest expense account for accrued interest Dee. 31 “Adjusting entries are made to record the accrued interest on the bonds, and the amortiza- tion of the proper amount of premium. (Use straight-line amortization.) Jan. 1,2015 Interest on the bonds is paid. April Bonds with par valine of $360,000 are called at 102 plus accrued interest, and redeemed (Bond premium is to be amortized only atthe end of each year) Dec. 31 ‘Adjusting entries are made fo record the accrued intrest on the bonds and the proper amount of premium amortized Instructions {Round to two decimal places.) Prepare journal entries for the transactions above, P147 (Entries for Eb 15-year, $1000 face value bonds at 97, Interest payne dates are Life Cycle of Bonds) On April 1, 2014, Seminole Company sold 1598 of its 11% Teen tnt hand discount amortization. OnED DD P44 dlssuance and Redemption of Bonds; Income Statement Preseniaton) Haiday Company sted BD BD its9% 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 209) at discount of $150,000, which it proceeded to amortize by charges o expense over th lite fhe sue on sag ine basis. The indenture securing the sue provided tte ond could be all for rdempton na ‘but not in part atary time before marty t 10% of the principal amount, Bt tid not prove foray sinking fund ‘On December 18,2014, the company ised it 1%, 2-year debenture bonds the pip amount of $4000000 at 12 andthe proces were eto eke the 9, 25-year mortgage Dodo au) 2 2015. The indenture scaring the ne sue dd nol prove for any sinking fd or lo redemption befor maturity Instructions Ma) Proparejumal ens to record esac fbn the redemption he nd (O) Tianc tne ncome scent uenment oe jainor low fet resempeon and then iar sire. BDO Piss (comprehensive Bond Problem) Ineachof the flowing independent cass the company oes Bp Books on December 31 4. Sanford Co. sells $5000 of Sind March 1 The due date ofthe bonds Sept F rough Decerbe: 31 218 sd Jue 1201, The bd payne en Deeb hd 110% bonds on March 1208, Te Bonds pay interest on September Ker a7. The bonds yd 2%. Give nes Momo el sumo 1 pen a 2 Tl Cone 2 Tht On Oe Te Ln et fina Si ce oe December 1.2006. eee