1) Manilow Company issued $600,000, 9%, 20-year bonds on January 1, 20

QUESTION

1) Manilow Company issued $600,000, 9%, 20-year bonds on January 1, 2006, at 103. Interest is payable semiannually on July 1 and January 1. Manilow uses straight-line amortization for bond premium or discount.InstructionsPrepare the journal entries to record the following.(a) The issuance of the bonds.(b) The payment of interest and the premium amortization on July 1, 2006, assuming that interest was not accrued on June 30.(c) The accrual of interest and the premium amortization on December 31, 2006.(d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.2) Fields Corporation has 20,000 shares of $10 par valuecommon stock outstanding when it announces a 2-for-1stock split. Before the split, the stock had a market priceof $120 per share. After the split, how many shares ofstock will be outstanding? What will be the approximatemarket price per share?
a) Journal entry to record issuance of bond Account Name Debit ($) Credit ($) Cash 618000 Bond payable 600000 Premium on bond payable 18000 b) The payment of interest and the premium amortization on July 1, 2015, assuming that interest was not accrued on June 30 600000*9/100*1/2= 27000 18000/20 year*1/2 = 450 27000-450 = 26550 Interest Exp Account Name Debit ($) Credit ($) Interest Exp 26550 Premium on bond payable 450 Bond interest payable 27000 c) The accrual of interest and the

ANSWER:

CLICK REQUEST FOR  AN EXPERT SOLUTION