help with Problem 10-9A Wiley Wempe Co. sold $3,107,000, 9%, 10-year bonds on Ja
ID: 2417543 • Letter: H
Question
help with Problem 10-9A Wiley
Wempe Co. sold $3,107,000, 9%, 10-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.
Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 102 and (2) 97. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
Prepare amortization tables for issuance of the bonds sold at 102 for the first three interest payments.
Annual
Interest
Periods
Interest to
Be Paid
Interest Expense
to Be Recorded
Premium
Amortization
Unamortized
Premium
Bond
Carrying Value
Prepare amortization tables for issuance of the bonds sold at 97 for the first three interest payments.
Annual
Interest
Periods
Interest to
Be Paid
Interest Expense
to Be Recorded
Premium
Amortization
Unamortized
Premium
Bond
Carrying Value
Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at: (1) 102 and (2) 97. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 102 at December 31, 2014.
WEMPE Co.
Balance Sheet (Partial)
December 31, 2014
WEMPE Co.
Balance Sheet (Partial)
December 31, 2014
help with Problem 10-9A Wiley
Wempe Co. sold $3,107,000, 9%, 10-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.
Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 102 and (2) 97. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
1. 1/1/14 2. 1/1/14Prepare amortization tables for issuance of the bonds sold at 102 for the first three interest payments.
Annual
Interest
Periods
Interest to
Be Paid
Interest Expense
to Be Recorded
Premium
Amortization
Unamortized
Premium
Bond
Carrying Value
Prepare amortization tables for issuance of the bonds sold at 97 for the first three interest payments.
Annual
Interest
Periods
Interest to
Be Paid
Interest Expense
to Be Recorded
Premium
Amortization
Unamortized
Premium
Bond
Carrying Value
Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at: (1) 102 and (2) 97. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
1. 12/31/14 2. 12/31/14Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 102 at December 31, 2014.
WEMPE Co.
Balance Sheet (Partial)
December 31, 2014
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity
$
Less Add :
$
Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 97 at December 31, 2014.
WEMPE Co.
Balance Sheet (Partial)
December 31, 2014
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity
$
Less Add :
$
Explanation / Answer
Journal entries to record the issuance of the bonds a. at 102 Date Account Titles and Explanation Debit Credit 01-01-2014 Cash $ 31,69,140 Bonds Payable $ 31,07,000 Premium on Bonds Payable $ 62,140 Issue of bonds at premium a. at 97 Date Account Titles and Explanation Debit Credit 01-01-2014 Cash $ 30,13,790 Discount on Bonds Payable $ 93,210 Bonds Payable $ 31,07,000 Issue of bonds at discount Amortisation tables for issuance of the bonds sold at 102 for the first three interest payments Annual Interest periods Interest to be paid Interest Expense to recorded Premium Amortization Unamortized Premium Bond carrying value Issue date $ 62,140 $ 31,69,140 1 $ 2,79,630 $ 2,73,416 $ 6,214 $ 55,926 $ 31,62,926 2 $ 2,79,630 $ 2,73,416 $ 6,214 $ 49,712 $ 31,56,712 3 $ 2,79,630 $ 2,73,416 $ 6,214 $ 43,498 $ 31,50,498 Amortisation tables for issuance of the bonds sold at 102 for the first three interest payments Annual Interest periods Interest to be paid Interest Expense to recorded Premium Amortization Unamortized Premium Bond carrying value Issue date $ 93,210 $ 30,13,790 1 $ 2,79,630 $ 2,88,951 $ 9,321 $ 83,889 $ 30,23,111 2 $ 2,79,630 $ 2,88,951 $ 9,321 $ 74,568 $ 30,32,432 3 $ 2,79,630 $ 2,88,951 $ 9,321 $ 65,247 $ 30,41,753 Journal Entries to record interest expense for 2014 under both of the bond issuance assuming they sold (1) 102 and (2) 97 Date Account Titles and Explanation Debit Credit 12/31/2014 Bond interest expense $ 2,73,416 Premium on Bonds Payable $ 6,214 Bond Interest payable $ 2,79,630 (To record interest expense assuming bonds are sold at 102) Date Account Titles and Explanation Debit Credit 12/31/2014 Bond interest expense $ 2,88,951 Discount on Bonds payable $ 9,321 Bond interest payable $ 2,79,630 (To record interest expense assuming bonds are sold at 97) Show the Long term liabilities balance sheet presentation for issuance of the bonds sold at 102 at December 31 ,2014 Partial Balancesheet Long term Liabilities Bonds Payable $ 31,07,000 Add: Premium on Bonds payable $ 55,926 $ 31,62,926 Show the Long term liabilities balance sheet presentation for issuance of the bonds sold at 97 at December 31 ,2014 Partial Balancesheet Long term Liabilities Bonds Payable $ 31,07,000 Less: Discount on Bonds payable $ 83,889 $ 30,23,111
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