FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Wildhorse Co. sold $3,310,000, 9%, 10-year bonds on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on
January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.
(a)
Your Answer Correct Answer
Your answer is correct.
Prepare the journal entries to record the issuance of the bonds.assuming they sold at: (1) 104 and (2) 97. (List all debit entries before
credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter O for the amounts.)
No. Date Account Titles and Explanation
1.
1/1/25 Cash
Bonds Payable
Premium on Bonds Payable
Debit
3442400
Credit
3310000
132400
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Transcribed Image Text:Wildhorse Co. sold $3,310,000, 9%, 10-year bonds on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. (a) Your Answer Correct Answer Your answer is correct. Prepare the journal entries to record the issuance of the bonds.assuming they sold at: (1) 104 and (2) 97. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Date Account Titles and Explanation 1. 1/1/25 Cash Bonds Payable Premium on Bonds Payable Debit 3442400 Credit 3310000 132400
Prepare amortization table for issuance of the bonds sold at 104 for the first three interest payments.
Annual
Interest
Periods
Issue
date
1
2
♡
Annual
Interest
Periods
$
Issue
date
Interest to
Be Paid
$
297900
297900
297900
$
Interest to
Be Paid
Interest Expense
to Be Recorded
294590
294950
Prepare amortization table for issuance of the bonds sold at 97 for the first three interest payments.
294590
Premium
Amortization
Interest Expense
to Be Recorded
3310
3310
3310
3310
Discount
Amortization
$
Unamorti
Premiu
Unamor
Disco
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Transcribed Image Text:Prepare amortization table for issuance of the bonds sold at 104 for the first three interest payments. Annual Interest Periods Issue date 1 2 ♡ Annual Interest Periods $ Issue date Interest to Be Paid $ 297900 297900 297900 $ Interest to Be Paid Interest Expense to Be Recorded 294590 294950 Prepare amortization table for issuance of the bonds sold at 97 for the first three interest payments. 294590 Premium Amortization Interest Expense to Be Recorded 3310 3310 3310 3310 Discount Amortization $ Unamorti Premiu Unamor Disco
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