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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. 31

SHOW 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. 31

SHOW 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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