gnment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise 14-5 Orio

Question

gnment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise 14-5 Oriole Corporation issued $612,000 of 5% bonds on May 1, 2017. The bonds were dated January 1, 2017, and mature January 1, 2020 payable July 1 and January 1. The bonds were issued at face value plus accrued interest. with interest Prepare Oriole's ournal entries for (o) the May 1 issuance, Cb) the July 1 Interest payment, and (c) the Decaember 31 adjusting entry,. (If no entry required, select "No Entry" for the account titles and enter O for the amounts. Credit account tities are automatically indented when declmal places, e.g. 38,548.) not Indent manually, Round intermedlate calculations to 6 decimal places, e.g. 1.251247 and final answer to Date Account Titles and Explanation Debit Credit (a) ? Question Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER SUBMIT ANSWER Version 4.24 edugen/shared/assignment/testiaglist.unit& Sons.Inc. All Rights Reserved. A Division of 1oha Wiley & Sons. Jas 4

Explanation / Answer

May 1 Issuance:

Bank A/c

622,200

5% Bonds

612000

Accrued interest on Bonds                   

10200

Amount of Accrued Interest = 612000*5%*4/12 = 10200

July 1 : Interest Payment

Interest on 5% Bonds

15300

Bank

15300

Interest Paymnet = 612000*5%*6/12 = 15300

Dec 31: Adjusting Entry

Accrued Interest

10200

Interest on 5% Bonds

10200

Bank A/c

622,200

5% Bonds

612000

Accrued interest on Bonds                   

10200

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