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On January 1, 2013, JWS Corporation issued $690,00...

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On January 1, 2013, JWS Corporation issued $690,000 of 7% bonds, due in 10 years. The bonds were issued for $643,115, and pay interest each July 1 and January 1. JWS uses the effective-interest method. Prepare the company?s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%. (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (b) (c) At December 31, 2013, Hyasaki Corporation has the following account balances: Bonds payable, due January 1, 2021 $2,099,000 Discount on bonds payable 115,600 Interest payable 107,400 Show how the above accounts should be presented on the December 31, 2013, balance sheet, including the proper classifications. Hyasaki Corporation Balance Sheet December 31, 2013 Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity $ Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity $ Add Less : $ On January 1, 2013, McLean Company makes the two following acquisitions. 1. Purchases land having a fair value of $392,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $595,084. 2. Purchases equipment by issuing a 6%, 9-year promissory note having a maturity value of $507,000. (interest payable annually). The company has to pay 11% interest for funds from its bank. (a) Record the two journal entries that should be recorded by McLean Company for the two purchases on January 1, 2013. (b) Record the interest at the end of the first year on both notes using the effective-interest method. (Round answers to 0 decimal places, e.g. $38,548.) No. Account Titles and Explanation Debit Credit (a) 1. 2. (b) 1. 2. At December 31, 2012, Redmond Company has outstanding three long-term debt issues. The first is a $2,038,900 note payable which matures June 30, 2015. The second is a $6,004,400 bond issue which matures September 30, 2016. The third is a $12,542,000 sinking fund debenture with annual sinking fund payments of $2,508,400 in each of the years 2014 through 2018. Prepare the required note disclosure for the long-term debt at December 31, 2012. Long-term Debt 2013 $ 2014 $ 2015 $ 2016 $ 2017 $

 

Paper#12832 | Written in 18-Jul-2015

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