i just need help on part B! Cash isn\'t the right journal entry and the two cred
ID: 2525814 • Letter: I
Question
i just need help on part B! Cash isn't the right journal entry and the two credits are wrong. Thanks!!
ASSIGNMENT RESOURCES Problem 10-8A (Part Level Submission) Post-Class Chpt 10A Pa Indigo Corporation sold $3,170,000, 7%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1 . Indigo Corporation uses the straight-line method to amortize bond premium or discount. Problem 1 Problem 10-4A Submission) Problem 10-8A (Part Level Submission ? (a) Your answer is correct. E Ex 10-3 Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 106 (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Review Sco Date Account Titles and Explanation Debit Credit Review Results by Study Objective Jan. 1 Cash 3360200 Premium on Bonds Payable 190200 Bonds Payable 3170000 Dec. 31 Interest Expense 183860 Premium on Bonds Payable 38040 Interest Payable 221900 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 2 of 2 used Your answer is partially correct. Try again. Prepare journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 97. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 3074900 Discount on Bonds Payable 95100 Bonds Payable 3170000 Dec. 31 Interest Expense 240920 Cash 221900 Discount on Bonds Payable 19020 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 2 used SAVE FOR LATER SUBMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above.Explanation / Answer
Date Account title and explanation Debit Credit Jan. 1 Cash $ 3,074,900 Discount on Bonds payable $ 95,100 Bonds payable $ 3,170,000 Dec. 31 Interest expense $ 240,920 Interest payable ($3,170,000 × 7%) $ 221,900 Discount on Bonds payable ($95,100/5) $ 19,020
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