The board of directors of Calmont, LLC, authorized the issuance of $600,000 face value, 20-year,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The board of directors of Calmont, LLC, authorized the issuance of $600,000 face value, 20-year, 5 percent bonds, dated March 1, 2019, and maturing on March 1, 2039. Interest is payable semiannually on September 1 and March 1.
DATE
TRANSACTIONS FOR 2019
Jun.
1
Issued bonds with a face value of $450,000 at 97.63 plus accrued interest from March 1. (When bonds are issued between interest payment dates, the accrued interest is paid to the corporation by the purchaser. Credit Bond Interest Expense.)
Sept.
1
Paid the semiannual bond interest and amortized the discount for three months. (Make two entries. Use the straight-line method to compute the amortization.)
Dec.
31
Recorded an adjusting entry to accrue the interest and to amortize the discount. (Make one entry.)
31
Closed the Bond Interest Expense account to the Income Summary account.
DATE
TRANSACTIONS FOR 2020
Jan. 1
Reversed the adjusting entry made on December 31, 2019.
Mar. 1
Paid the semiannual bond interest and amortized the discount on the outstanding bonds.
Required:
Prepare the Long-Term Liabilities section of the corporation's balance sheet on December 31, 2019.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
