I NEED ANSWERS FOR b) and c) Exercise 14-8 Presented below are three independent

Question

I NEED ANSWERS FOR b) and c)

Exercise 14-8 Presented below are three independent situations (a) Cece Winans Corporation incurred the following costs in Connection with the issuance of bonds: (1) printing and engraving costs, $13,260; (2) legal fees, $53,630, and (3) commissions paid to underwriter, $68,600 What amount should be reported as Unamortized Bond Issue Costs, and where should this amount be reported on the balance sheet? (Round answer to o decimal places, e.g. 38,548.) Amount to be reported as Unamortized Bond Issue Costs 135490 Unamortized Bond Issue Costs should be reported in Other Asset section of the balance Sheet (b) George Gershwin Co. sold $2,076,000 of 12%, 9-year bonds at 106 on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on July 1 and January 1. If Gershwin uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2014, and December 31, 2014 (Round answer to O decimal places, e.g 38,548.) Interest expense to be recorded (c) Ron Kenoly Inc. issued $629,300 of 9%, 9-year bonds on June 30, 2014, for $527,096. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Kenoly uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2014 (Round answer to O decimal places e.g. 38,548.) Interest expense to be recorded

Explanation / Answer

A B C D E F G Date Interest Payment @4.5% Interest expenses SLM Amortization of Bond C-B cr, balance in the a/c Bond Discount a/c Credit balance in the Bond payable Carrying value of Bond F-E A B C D E F G               $ Date Interest Payment @6% Interest expenses at 6%*G Amortization of Bond C-B cr, balance in the a/c Bond Premium a/c Credit balance in the Bond payable Carrying value of Bond F+E Credit cash Debit Interest Expense Bond Premium Jan 1 2014 124560 2076000 2200560 July 1 2014 124560 117640 -6920 117640 2076000 2193640 Dec 31 2014 124560 117640 -6920 110720 2076000 2186720 all other years 124560 117640 -6920 103800 2076000 2179800 for your 124560 117640 -6920 96880 2076000 2172880 understanding 124560 117640 -6920 89960 2076000 2165960 124560 117640 -6920 83040 2076000 2159040 124560 117640 -6920 76120 2076000 2152120 124560 117640 -6920 69200 2076000 2145200 124560 117640 -6920 62280 2076000 2138280 124560 117640 -6920 55360 2076000 2131360 124560 117640 -6920 48440 2076000 2124440 124560 117640 -6920 41520 2076000 2117520 124560 117640 -6920 34600 2076000 2110600 124560 117640 -6920 27680 2076000 2103680 124560 117640 -6920 20760 2076000 2096760 124560 117640 -6920 13840 2076000 2089840 124560 117640 -6920 6920 2076000 2082920 124560 117640 -6920 0 2076000 2076000 Premium on issue of Bond= 2076000/100*106-2076000 124560 Amoetization through SLM 124560/9*2 6920 Interesr expense to be recorded for July 117640 Interesr expense to be recorded for December 117640 Total interest expense 235280 Ans Ans c Date Credit cash Debit Interest Expense Bond Discount June 30 2014 102204 629300 527096 Dec 31,2014 28318.5 31626 3307 98897 629300 530403 June 30,2015 28318.5 31824 3506 95391 629300 533909 28318.5 32035 3716 91675 629300 537625 all these 28318.5 32257 3939 87736 629300 541564 just for your 28318.5 32494 4175 83561 629300 545739 understanding 28318.5 32744 4426 79135 629300 550165 28318.5 33010 4691 74443 629300 554857 28318.5 33291 4973 69471 629300 559829 28318.5 33590 5271 64199 629300 565101 28318.5 33906 5588 58612 629300 570688 28318.5 34241 5923 52689 629300 576611 28318.5 34597 6278 46411 629300 582889 28318.5 34973 6655 39756 629300 589544 28318.5 35373 7054 32702 629300 596598 28318.5 35796 7477 25224 629300 604076 28318.5 36245 7926 17298 629300 612002 28318.5 36720 8402 8897 629300 620403 28318.5 37224 8906 -9 629300 629309 So on 31 Oct 2014,4 months interest is to be accounted from first 6 months interest 31626/6*4 21084 Ans

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