The “think mаnаger think mаle†effect refers tо ______.
Repоrting Finаnciаl Stаtement Effects оf Bоnd Transactions On January 1, Shields, Inc., issued $500,000 of 9%, 20-year bonds for $549,482, yielding a market ( yield) rate of 8%. Semiannual interest is payable on June 30 and December 31 of each year. a. Prepare the journal entries for transactions described above. ● Note: Round your answers to the nearest whole dollar. Date Account Debit Credit Jan. 1 {#1} {#2} {#3} Jun. 30 {#4} {#5} {#6} Dec. 31 {#7} {#8} {#9} b. Post the journal entries to their respective T-accounts. ● Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account. Cash {#10} {#11} {#12} {#13} Bonds payable {#14} {#15} {#16} {#17} Interest expense {#18} {#19} {#20} {#21} Bond premium {#22} {#23} {#24} {#25}
Repоrting Finаnciаl Stаtement Effects оf Bоnd Transactions (FSET) Lundholm, Inc., which reports financial statements each December 31, is authorized to issue $300,000 of 9%, 15-year bonds dated May 1, 2021, with interest payments on October 31 and April 30. Assume the bonds are issued at par on May 1, 2021. Record the bond issuance, payment of the first semiannual period’s interest, and retirement of $100,000 of the bonds at 101 on November 1, 2022, using the financial statement effects template. Assume that interest was paid on October 31, 2022. ●Note: Use negative signs with your answers, when appropriate. ●Note: Select "N/A" as your answer if a part of the accounting equation is not affected. Balance Sheet Income Statement Cash Noncash Contributed Earned Net Transaction Asset + Assets = Liabilities + Capital + Capital Revenue - Expenses = Income Issue bonds. {#1} {#2} {#3} {#4} {#5} {#6} {#7} {#8} {#9} {#10} {#11} Interest payment. {#12} {#13} {#14} {#15} {#16} {#17} {#18} {#19} {#20} Retirement of bonds. {#21} {#22} {#23} {#24} {#25} {#26} {#27} {#28} {#29} {#30} {#31}
Recоrding аnd Assessing the Effects оf Bоnd Finаncing (with Accrued Interest) Eskew, Inc., which closes its books on December 31, is аuthorized to issue $250,000 of 6%, 15 year bonds dated May 1, 2021, with interest payments on November 1 and May 1. 1. Assuming that the bonds were sold at 100 plus accrued interest on October 1, 2021, prepare the necessary journal entries for items a–f below. a. The bond issuance. b. Payment of the first semiannual period’s interest on November 1, 2021. c. Accrual of bond interest expense at December 31, 2021. d. The adjustment to fair value on December 31, 2021, assuming that Eskew, Inc., elected to use the fair value option. On that date, the bond traded at a price of 98.5 (98.5% of par value) in the bond market. (Assume that the change in fair value results from a change in market interest rates rather than a change in instrument-specific credit risk.) e. Payment of the semiannual interest on May 1, 2022. (The firm does not make reversing entries.) f. Retirement of $100,000 of the bonds at 101 on May 1, 2026 (immediately after the interest payment on that date). Assume that the fair value adjustment account for the entire issue has a debit balance of $11,250 as of that date. Hint: Forty percent of the outstanding bonds were retired in this transaction. Account Debit Credit a. {#1} {#2} {#3} b. {#4} {#5} {#6} c. {#7} {#8} d. {#9} {#10} e. {#11} {#12} {#13} f. {#14} {#15} {#16} {#17}