Solution-Prepare adjusting entry to record the accrual of

Prepare adjusting entry to record the accrual of interest

Assignment Help Financial Accounting

Reference no: EM132494515

On October 1, 2021, Hill Corp. issued $780,000, 9%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31.

Question (a) Prepare the journal entry to record the issuance of the bonds.

Date Account/Description Debit Credit

Oct. 1

Question (b) Prepare the adjusting entry to record the accrual of interest on December 31, 2021.

Date Account/Description Debit Credit

Dec. 31

Question (c) Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2021.

Current liabilities

Long-term liabilities

Question (d) Prepare the journal entry to record the payment of interest on October 1, 2022.

Date Account/Description Debit Credit

Oct. 1

Question (e) Prepare the adjusting entry to record the accrual of interest on December 31, 2022.

Date Account/Description Debit Credit

Dec. 31

Question (f) Assume that on January 1, 2023, Hill pays the accrued bond interest and calls the bonds. The call price is 102. Record the payment of interest and redemption of the bonds.

Date Account/Description Debit Credit

Jan 1

Reference no: EM132494515

Questions Cloud

Analyze the strengths in the current systems of idi : Analyze the strengths and weaknesses in the current systems of IDI. Address remote user and Web site user's secure access requirements.

What must be the value of the risk-free rate : Also suppose that it is possible to borrow at the risk-free rate. What must be the value of the risk-free rate?

Calculate the npv and irr for machine q : Using the information provided, apply the net present value (NPV) technique to calculate the NPV and IRR for Machine Q. Use an alternative cost of capital of 18

Discuss your belief on tech giants violating antitrust laws : Antitrust regulation is designed to increase competition by eliminating attempts to monopolize an industry (other than through better products or better).

Prepare adjusting entry to record the accrual of interest : Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2021. Prepare the adjusting entry to record the accrual

What considerations would have to be made fora company : Looking at your identified industry for your paper, what considerations would have to be made in developing a long-term archival plan for a company within.

Define ways to improve system development productivity : Discuss the various ways to improve system development productivity. 600 words, no plagiarism and should be cited and written in APA format.

Small introduction for geographical distribution : Small introduction for Geographical Distribution of Paratuberculosis in middle east - Geographical Distribution of Paratuberculosis in Iraq (Johne?s Disease)

How can the leases be arranged to treat as operating : How can the leases be arranged to treat? Which of the two methods of treatment (operating or capital) would rise to a higher net income in the ?rst year?

Reviews

Write a Review

Required(*) Message

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Financial Statement Analysis and Preparation

Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd