Exercise 10-21 Oriole Company issued $472,500, 7%, 15-year bonds on December 31,
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Question
Exercise 10-21
Oriole Company issued $472,500, 7%, 15-year bonds on December 31, 2016, for $453,600. Interest is payable annually on December 31. Oriole uses the straight-line method to amortize 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.)
?-> i Scourc httpa//ccugen.vilaypus.ccmodugentí'main.uni Rcturn to Blackboard WileyPLUS mel, Accounting, Ge Or10? Ccmpony issued S 472.200. 7%. 15-year bonds on Dcccmber 31, 20?G, for S423,GCO. Interest ls payable annually on December 31. Oriolc uses the stright-line mcthod to ?mortiza bond pramlum or discount. Fxenciae 10-13 rxprcie 10-16 rapare the ournal antries to record the tollowing avents. (Credit account titles are autoniatically Indented iwhen amount is entered. Do not Indent aanually. (a Tha ssuanca ot tha bands (b The payret ointerest and the dacount amortizatin Deceber , 2017. (c) The redemption of the bends at maturity, assuning interest for the last interest peried has been paid and recorded Reviow Score Raview Results by Studdy No. Date Account Titles and Explanatlon Debit (a) Dex 31, 2015 (u) Deu 31, 2017 () Deu,31, 2031 TET LINK TO Question Attempts: 0 ot 5 used SAVE HOH LAIE O lype hene to search
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Dec 31,2016 Cash 453600 Discount on bonds payable 18900 Bonds payable 472500 (To record issue bonds payable) Dec 31,2017 Interest expense 34335 Discount on bonds payable 1260 Cash 33075 (To record interest ) Dec 31,2031 Bonds payable 472500 Cash 472500 (To record redemption of bonds)Related Questions
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