Problem 10-8A Problem 10-8A Yung Corporation sold $2,388,000, 8%, 5-year bonds o
ID: 2484858 • Letter: P
Question
Problem 10-8A
Problem 10-8A
Yung Corporation sold $2,388,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Yung Corporation uses the straight-line method to amortize bond premium or discount.
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
YUNG CORPORATION
Balance Sheet (Partial)
December 31, 2014
YUNG CORPORATION
Balance Sheet (Partial)
December 31, 2014
Yung Corporation sold $2,388,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Yung Corporation uses the straight-line method to amortize bond premium or discount.
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
YUNG CORPORATION
Balance Sheet (Partial)
December 31, 2014
YUNG CORPORATION
Balance Sheet (Partial)
December 31, 2014
Problem 10-8A
Problem 10-8A
Yung Corporation sold $2,388,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Yung Corporation uses the straight-line method to amortize bond premium or discount.
Your answer is partially correct. Try again. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date
Account Titles and Explanation
Debit
Credit
Jan. 1 Dec. 31SHOW LIST OF ACCOUNTS
LINK TO TEXT
Your answer is incorrect. Try again. Prepare journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date
Account Titles and Explanation
Debit
Credit
Jan. 1 Dec. 31SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
Your answer is incorrect. Try again. (1) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 104 selling price.YUNG CORPORATION
Balance Sheet (Partial)
December 31, 2014
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity
$Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity
$Add Less
: $(2) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 95 selling price.
YUNG CORPORATION
Balance Sheet (Partial)
December 31, 2014
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity
$Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity
$Add Less
:Yung Corporation sold $2,388,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Yung Corporation uses the straight-line method to amortize bond premium or discount.
Explanation / Answer
par value of bond 2388000 balance sheet as on december 31 2014 issue price 2483520 premium 95520 bonds payable 2388000 2464416 premium on bonds 76416 cash debit 2483520 bond payable credit 2388000 premium on bond 95520 interest expenses debit 171936 premium on bond debit 19104 credit cash 191040 par value of bond 2388000 balance sheet as on december 31 2014 issue price 2268600 discount 119400 bonds payable 2268600 2364120 discount on bonds 95520 cash debit 2268600 discount on issue of bonds 119400 bond payable credit 2388000 interest expenses debit 191040 credit discount on bonds 23880 credit cash 167160
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