Need help on the balance sheet and the red parts. Problem 10-8A Yung Corporation

Question

Need help on the balance sheet and the red parts.

Problem 10-8A Yung Corporation sold $3,126,000 7%, 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 Your answer is partially correct. Try again 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 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 TCash 3,282,300 Bonds Payable 3,126,000 Premium on Bonds Pay 156,300 Dec. 31 Interest Expense 187,560 Discount on Bonds Payable 31,260 Interest Payable 218,820 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again Prepare journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 TCash 2,969,700 Bonds Payable 3,126,000 Discount on Bonds Payable 156,300 Dec. 31 Interest Expense 250,080 Discount on Bonds Paya 31,260 Interest Payable 218,820 SHOW LIST OF ACCOUNTS LINK TO TEXTLINK TO TEXT

Explanation / Answer

Journal Entries: Date Account title and explanation Debit Credit Dec. 31 Interest Expenses $      187,560.00 Premium on Bonds payable $        31,260.00 Interest Payable $      218,820.00 Journal Entries: Date Account title and explanation Debit Credit Jan.1 Cash $ 2,969,700.00 Discount on bonds Payable $      156,300.00 Bonds Payable $ 3,126,000.00 Dec. 31 Interest Expenses $      250,080.00 Discount on bonds Payable $        31,260.00 Interest Payable $      218,820.00 Balance Sheet when issued at $105 Current Assets: Cash $ 3,282,300.00 Total Current Assets $ 3,282,300.00 Other Assets: Liabilities: Bonds Payable $ 3,126,000.00 Bond premium $      125,040.00 Balance Sheet when issued at $95 Current Assets: Cash $ 2,969,700.00 Total Current Assets $ 2,969,700.00 Other Assets: Discount on Bond $      125,040.00 Total Assets $ 3,094,740.00 Liabilities: Bonds Payable $ 3,126,000.00

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

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