Exercise 10-18 Gridley Company issued $1,188,000, 15%, 10-year bonds on December
ID: 2511279 • Letter: E
Question
Exercise 10-18
Gridley Company issued $1,188,000, 15%, 10-year bonds on December 31, 2016, for $1,113,750. Interest is payable annually on December 31. Gridley Company uses the straight-line method to amortize bond premium or discount.
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2016
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Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2017
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LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2026
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LINK TO TEXT
SAVE FOR LATER
SUBMIT ANSWER
Please explain how you found these numbers.Exercise 10-18
Gridley Company issued $1,188,000, 15%, 10-year bonds on December 31, 2016, for $1,113,750. Interest is payable annually on December 31. Gridley Company uses the straight-line method to amortize bond premium or discount.
Your answer is partially correct. Try again. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2016
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Your answer is partially correct. Try again. Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2017
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Your answer is partially correct. Try again. Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2026
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Question Attempts: UnlimitedSAVE FOR LATER
SUBMIT ANSWER
Explanation / Answer
Date Account titles & Explanations Debit Credit 12/31/2016 Cash 1,113,750 discount on bonds payable 74,250 Bonds payable 1,188,000 12/31/2017 interest expense 185625 Discount on bonds payable(74250/10) 7425 Cash (1,188,000*15%) 178200 12/31/2026 Bonds payable 1,188,000 cash 1,188,000
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