View History Bookmarks People Window Help ewconnect.mheducation.com/flow/connect

Question

View History Bookmarks People Window Help ewconnect.mheducation.com/flow/connect.html Research Paper D DQC Office 365 I-CUNYfirst DCAMS a Microsoft Officen. cuNYPortala Mya A web ssign Saved Mellilio Corporation issued $5 million of 20-year, 9.5 percent bonds on July 1, 2018, at 98. Interest is due on June 30 and December 3 of each year, and all of the bonds in the Issue mature on June 30, 2038. Mellilo's fiscal year ends on December 31. a-c. Record the issuance of the bonds and entries after the issue. (If no entry is requlred for a transaction/event, select "No entry required" in the first account field. Enter your answers in dollars.) View transaction list

Explanation / Answer

SOLUTION

Date Accounts titles and Explanation Debit ($) Credit ($) July 1, 2018 Cash (5,000,000*98%) 4,900,000 Discount in bonds payable 100,000 Bonds payable 5,000,000 (To record issuance of bonds) Dec. 31 2018 Bonds interest expense 240,000 Discount on bonds payable (100,000/20 years *1/2) 2,500 Cash (5,000,000*9.5%*1/2) 237,500 (To record the interest and amortisation of discount) June 30 2038 Bond interest expense 240,000 Discount on bonds payable 2,500 Cash 237,500 (To make final interest payment and amortize bond discount) June 30 2038 Bonds payable 5,000,000 Cash 5,000,000 (To retire bonds at maturity)

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

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