4:38 PM 44% ooo Verizon edugen wileyplus.com S Help System Announcements (1 7e U

Question

4:38 PM 44% ooo Verizon edugen wileyplus.com S Help System Announcements (1 7e Unread) Kimmel, Financial Accounting, CALCULATOR PRINTER VERSION BACK NEX Exercise 10-20 Prophet Company issued $474,000, 7%, 30-year bonds on January 1, 2014, at 104. Interest is payable annually on January 1. Prophet uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered Do not indent manually.) (a) The issuance of the bonds The accrual of interest and the premium amortization on December 31, (b) 2014 (c) The payment of interest on January 1, 2015 The redemption of the bonds at maturity, assuming interest for the last (d) interest period has been paid and recorded Debit (b) Dec. 31, 2014 (d) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Question Attempts: o of 5 used SAVE FOR LATER. SUBMIT ANSWER Copyright C 2000-2015 by John Wiley & Sons, Inc. or related companies. All rights reserved

Explanation / Answer

No. Date Title Debit credit a) jan 1 2014 cash   (1.04 * 474000) 492,960 Bond Payable 474000 Premium on bond payable (.04*474000) 18960 [being bond issued at premium ] b Dec 31 2014 Interest expense (474000*.07) 33180 Premium on bond payable (18960/30) 632 Accrued Interest /Interest payable 33812 c jan1 2015 Interest payable 33812 cash 33812 d Bond payable 474000 cash 474000

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

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