winterbank productions issues $4 million of 4-year, ... Your question has expire

Question

winterbank productions issues $4 million of 4-year, ... Your question has expired and been refunded. We were unable to find a Chegg Expert to answer your question. Question Winterbank Productions issues $4 million of 4-year, 8 percent bonds on January 1, 2013. Interest is payable on July 1 and January 1, and financial statements are prepared on December 31. Winterbank uses the straight-line amortization method.

a. Prepare the journal entries for 2013, assuming the bonds were issued at 98

. b. Prepare the journal entries for 2013, assuming the bonds were issued at 103.

Explanation / Answer

a. Journal

b. Journal

Date Particulars Debit Credit 2013 Jan 1 Cash 3920000 Discount on bonds payable 80000           Bonds payable 4000000 July 1 Interest expense 170000           Discount on bonds payable 10000           Cash 160000 2014 Jan 1 Interest expense 170000            Discount on bonds payable 10000            Cash 160000

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

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