xercise 17-3 anuary 1, 2017, waterway Company purchased 996 bonds having a matur

Question

xercise 17-3 anuary 1, 2017, waterway Company purchased 996 bonds having a maturity value of $210,000, for $227,221.68. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2017, and mature Januar 2022, with interest receivable January 1 of each year. Waterway Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category Your answer is partially correct. Try again. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 t Income 27,221.68 27,221.68 Your answer is partially correct. Try again. Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.) Schedule of Interest Revenuc and Bond Premium Amortization Mcthod Cash Received Interest Revenue Premium Carrying Amount Amortized Date of Bonds 27,221 1/1/20 1/1/21 1/1/22

Explanation / Answer

Solution a:

Solution b:

Solution c:

Journal Entries - Water Way Company Date Particulars Debit Credit 1-Jan-17 Investment in Bond - Held to Maturity Dr $227,221.68                 To Cash $227,221.68 (To Record Investment in bond)

Related Questions

Navigate

• Browse (All)
• Browse X
• Subjects

---

---

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