(Solved): February 26 The company paid cash to Lyn Addie for eight days' work at $120 per day. Hillside issue ...
February 26 The company paid cash to Lyn Addie for eight days' work at $120 per day. Hillside issues
$2,400,000of
9%,15-year bonds dated January 1,2021 , that pay interest semiannually on June 30 and December 31. Problem 10-1A (Algo) Straight-Line: Amortization of bond discount LO P2 The bonds are issued at a price of
$2,073,868. Required: Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. Prepare the first two years of a straight-line amortization table. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Journal entry worksheet
1Record the issue of bonds with a par value of
$2,400,000on January 1,2021 at an issue price of
$2,073,868. Note: Enter debits before credits. March 25 The company sold merchandise with a $2,800 cost for $2,900 on credit to Wildcat Services, invoice dated March 25. Required: Assume that Lyn Addie is an unmarried employee. Her $960 of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $96. Compute her net pay for the eight days' work paid on February 26. Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and SUTA (the FUTA rate is 0.6% and the SUTA rate is 5.4% for the company). Record the entries for the merchandise sold on March 25 if a 4% sales tax rate applies.
