Yung Corporation sold $2,385,000, 9%, 5-year bonds on January 1, 2014. The bonds
ID: 2580626 • Letter: Y
Question
Yung Corporation sold $2,385,000, 9%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Yung Corporation uses the straight-line method to amortize bond premium or discount.
A. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Jan1
Dec31
B. Prepare journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Jan1
Dec31
C. (1) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 104 selling price.
C (2) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 96 selling price.
CONotsecure eduger.wiley.co Kimmel, Accounting: Tools for Business Decision Mking, Se Problem 10-UA Ying Corporation scl $7,3AS,000. 9%. 5-yaar honds or 1anLarv tr 2014. Trie bands were dated Ianuarv 1, 2014, and pay int rast on Ianuary 1. Yung Cehmoration uses th.straiant-lin m thadt t amortize hand premium ar damunt. Prepara all th nackssarv fairnal ntries to 'enord the issiano rt the hands and bon interest GXpen; for 2014, asaumina that the hande sold a 104. (Credit accoot tiries aretamaticly indentpd Date Account Titles and Explanation lan. Det. 31 Prepare jaumal entries to recor the issuante of the bords and bond interest expense for 2014 assuming that the bonds sold a. (credit account titles are automatically indented wben O lype here to search ^ 46, 11260017Explanation / Answer
SOLUTION
A.
B.
C1. Balance sheet-
C2. Balance sheet-
Date Accounts title and Explanations Debit ($) Credit ($) Jan.1 Cash ($2,385,000 * 104%) 2,480,400 Premium on Bonds Payable 95,400 Bonds Payable 2,385,000 Dec.31 Interest Expense 195,570 Premium on Bonds Payable ($95,400/5) 19,080 Interest Payable ($2,385,000 *9%) 214,650Related Questions
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