Hel Secure\'ttps://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.unl

Question

Hel Secure'ttps://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.unl Problem 15-9A 0 )anuary 1 2017, LckCorporation issued $3,520,000 face value, 8% 10-year bonds at $3.294 098 This pre effective-interest rate of 5% on the bonds. Lock bonds pay annual interest on January 1 uses the effective-interest method to amortize bond premium or discount. The Prepare the journal entry to record the issuance of the bonds on January 1, 2017,(Credit account titles are a indented when amount is entered. Do not indent manually) Date anuary 1, 2017 Account Titles and Explanation Debit Credit te of s Prepare an amortization table through December 31, 2019 (three interest periods) for this bond issue. (Round answers to o decimal places, e.g. 15,250.) e the ont is Bond Discount A to Be Interest Expe Unamortized Discount Bond Carrying Periods Paid Recorded Issue date To E Prepare the journal entry to record the accrual of iterese and the amortclation of the discount on December 31, 2017 answers to O decimal places, e.g. 15,250. Credit account titles are automaticalil Da not indent manually. ) y indented when amount is entered. Date Account Titles and Explanation Debit Credit MacBook Air

Explanation / Answer

Date Account titles and Explanations Debit Credit 1/1/2017 Cash 3,294,098 Discount on bonds payable 225,902 Bonds payable 3,520,000 Amortization table periods intt to be intt exp Discount unamorti Bond paid amortiza discount CV issue date 225,902 3,294,098 1 281600 296469 14869 211033 3308967 2 281600 297807 16207 194826 3325174 3 281600 299266 17666 177161 3342839 interest paid = 3,520,000*8% 281600 interest expense = CV *9% Date Account titles and Explanations Debit Credit 12/31/2017 interest expense 296469 discount on bonds payable 14869 interest payable 281600 1/1/2018 interest paybale 281600 cash 281600 12/31/2018 interest expense 297807 discount on bonds payable 16207 interest payable 281600

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.