Prepare the journal entry to record the interest revenue on december 31 2017

On december 31 10 years later, the maturity date, the entry would include the last interest payment and the amount of the bond. The 12 monthly journal entries for the bond interest and amortization of bond discount plus the entries for the june 30 and december 31 semiannual interest payments will result in the following 14 entries during the year 2019. Solved on january 1, 2020, dagwood company purchased at. Exam april spring 2017, questions and answers acct 201. If the bonds were issued on january 1, the company would pay interest on december 31 and the journal entry would be. The terms of the note are 24month maturity date on december 31, 2019 at a 4. Do not indent manually if no entry is required select no.

Under the accrual basis of accounting, a business should record interest revenue even if it has not yet been paid in cash for the interest, as long as it has earned the interest. The accounting year closing date of a company on december 31. Jul 09, 2019 prepare journal entries to record a issuance of the note, b accrual of interest at the end of 2017, and c payment of the note at maturity. Credit account titles are automatically indented when amount is entered. Prepare any journal entries each company should record in 2021 to correct the errors. On january 1, 2017, sheffield company purchased at. Ivanhoe uses straightline amortization for bond premium or discount. The journal entries for the remaining years will be similar if all of the bonds remain outstanding. Treat adjusting entries just like you would treat normal entries. Prepare the journal entry to record this impairment on december 31, 2018. The journal entries for the remaining years will be. Prepare the journal entry to record the interest revenue on december 31, 2017c. May 31 g2 156,818 may 31 g2 12,040 depreciation expense acct. In january 2021, when it paid employees for the december 27january 2.

On january 1, 2017, dagwood company purchased at par 6% bonds having abond purchase. These adjustments are made to more closely align the reported results and financial position of a business with the requirements of an accounting framework, such as gaap or ifrs. Apr 23, 2019 ivanhoe uses straightline amortization for bond premium or discount. Financial statements are prepared annually on december 31. Note that valley does not need any interest adjusting entries because the interest payment date.

If no entry is required, select no entry for the account titles and enter 0 for the amounts. This generally involves the matching of revenues to expenses under. Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the allowance for doubtful accounts has. An entry must show the amount of interest earned by december 31 as well as the amount of the asset, interest receivable the right to receive this interest. The straightline method is used to amortize bond discount. B prepare the journal entry to record the sale of the colorado company stock during 2014. Notes receivableinterestbearingnoninterestbearingnotes. Interest payable amounts are usually current liabilities and may also be. Event general journal debit credit services revenue. Prepare the journal entry to record the interest revenue.

Oct 17, 2017 d prepare the journal entry to record the interest revenue and the amortization at december 31, 2018. List multiple debitcredit entries from largest to smallest amount, e. Dec 18, 2018 adjusting entries are journal entries recorded at the end of an accounting period to alter the ending balances in various general ledger accounts. At the end of december, no entry was entered in the journal to take up the interest income. Prepare the journal entry at the date of the bond purchase. If the bonds were issued on january 1, the company would pay interest on december 31 and the journal entry. Adjusting entry for accrued revenue accountingverse. Record journal entries for rain tshirts for the following transactions. Larry potts does not pay on his account and dishonors the note. Interest payable guide, examples, journal entries for. Prepare journal entries to record the payment of interest on august 1, 2015. The journal entry to record this interest revenue would be. Adjusting entries are journal entries recorded at the end of an accounting period to alter the ending balances in various general ledger accounts. Prepare the journal entry to record the interest revenue and the amortization at december 31, 2017.

Read the transaction to determine what is going on. Under the cash basis of accounting, interest revenue is only. Prepare the december 31, 2017, journal entry to record bad debt expense. The bonds are dated december 31, call for semiannual interest payments on june 30 and december 31, and mature in 10 years on december 31. The bonds were dated june 1, 2012, and pay interest semiannually on june 1 and december 1. Compute the accrued interest payable on december 31, 2017. Accounting for governmental operating activities illustrative. This amount of interest expense for february 1 through december 31, 2019 is confirmed by the following calculation.

Mar 17, 2017 c prepare the journal entries at december 31, 2018, assuming these securities are not impaired. Required information the following information applies to the questions displayed below. Prepare the journal entry at december 31, 2017, to record the bonus due and january 19, 2018, to record payment of the bonus to employees. Prepare the journal entry to record the bond issue, interest payments on december 31, 2015 and 2016, interest and face value payment on december 31, 2017 and the bond retirement. Prepare the journal entry to record the transaction of december 31, 2015, for the oriole co. Prepare the journal entry to record the initial transaction on january 1, 2017. The adjusting entry is needed because the interest was accrued during that period but is not payable until sometime in the next period.

Prepare the journal entry to record the interest revenue and the amortization at december 31, 30. Mar 05, 2020 prepare the journal entry to record the interest revenue on december 31, 2017c. Exercises and test bank of intermediate accounting 16e. The adjusting entry is posted to the general ledger in the same manner as other journal entries. Explanation no further explanation details are available for this problem. Exercise 179 part level submission at december 31, 2017, the availableforsale debt. Interest revenue is the earnings that an entity receives from any investments it makes, or on debt it owns. The date of the above entry would be at the end of the period in which the interest was earned. Daw companys december 31 yearend unadjusted trial balance. B prepare the adjusting entry to record the accrual of interest on december. If pronghorn estimates that 9% of its receivables will prove to be uncollectible. The bonds provide the bondholders with a 10% yield. Valley made the required interest and principal payments when due.

Interest and penalties receivable on taxes 500 estimated uncollectible interest and penalties 50 general revenuesinterest and penalties on delinquent taxes 450. Assume the bonds are retired on january 1, 2017, at a price of 101. September 11, 2017 september 12, 2017 correct september, 2017 september 14, 2017 september 15, 2017 2. Solved below are three independent and unrelated errors.

Prepare journal entries to record the accrual of interest on december 31, 2014. Jan 01, 2017 prepare the journal entry to record the interest revenue and the amortization at december 31, 2017. Recognition of accounts receivable expense at december 31, 2014. Acc 423 week 2 wileyplus assignment new syllabus with excel. Record the revenue earned for the first concert date of november 5, assuming it represents onefourth of the advance ticket sales.

Acct110 week 3 chapter 3 homework on march 1, 2015, a. Ch 8 presented below are selected transactions of molina. Round present value factor calculations to 5 decimal places, e. A prepare the journal entry to record the issuance of the bonds. Mar 19, 2017 b indicate the effect the 2017 entryies has on the december 31, 2017, balance sheet. Assuming that january 4, 2018 was a friday, prepare the journal entry that would be made to record payment of. C prepare the adjusting journal entry needed on december 31, 2014. Exercises and test bank of intermediate accounting 16e kieso.

Acc 423 week 2 wileyplus assignment new syllabus with. The required entry to accrue interest and penalties at the governmentwide level is similar, except for the revenues account. Bond discount with straightline amortization accountingcoach. Intermediate accounting chapter 17 flashcards quizlet. Prepare the journal entry to record the interest received on january 1, 2018 entries for heldtomaturitysecuritieson january 1, 2017, dagwood company purchased a par. Question 8 a prepare the journal entry at the date of the bond purchase. Use these steps when completing adjusting journal entries. The fair value of the bonds at december 31 of each yearend is as follows. Prepare the march 31 journal entry to record the march. Bonds payable 2600000 b prepare the adjusting journal entry on december 31, 2017, to record interest expense. Bonds issued at par with accrued interest accountingcoach. Ortegas yearend is december 31 prepare journal entries to record the issuance of the bonds.