Lorance Corporation issued $850,000, 9%, 10-year bonds on January 1, 2015, for $797,036. This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable semiannually on July 1 and January 1. Lorance uses the effective-interest method to amortize bond premium or discount. Warning Don’t show me this message again for the assignment Ok Cancel Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Warning Don’t show me this message again for the assignment Ok Cancel Show List of Accounts Prepare the journal entry to record the payment of interest and the discount amortization on July 1, 2015, assuming that interest was not accrued on June 30. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 Warning Don’t show me this message again for the assignment Ok Cancel Show List of Accounts Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2015. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Warning Don’t show me this message again for the assignment Ok Cancel Show List of Accounts Question Attempts: 0 of 2 used Save for later Submit Answer C.S. Lewis Company had the following transactions involving notes payable. July 1, 2015 Borrows $53,500 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2015 Borrows $64,800 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2015 Prepares adjusting entries. Feb. 1, 2016 Pays principal and interest to Lyon County State Bank. Apr. 1, 2016 Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1, 2015 Nov. 1, 2015 Dec. 31, 2015 (Adjusting entry for First National Bank note.) Dec. 31, 2015 (Adjusting entry for Lyon County State Bank note.) Feb. 1, 2016 Apr. 1, 2016 Warning Don’t show me this message again for the assignment Ok Cancel Show List of Accounts Detwiler Orchard issues a $558,020, 10%, 15-year mortgage note to obtain needed financing for a new lab. The terms call for semiannual payments of $36,300 each. Prepare the entries to record the mortgage loan and the first installment payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 8,970.) Account Titles and Explanation Debit Credit (To record mortgage loan) (To record semiannual payment on mortgage) Warning Don’t show me this message again for the assignment Ok Cancel
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