Problem 14-7 On April 1, 2017, Whispering Company sold 33,300 ofits 11%, 16-year, $1,000 face value bonds at 97. Interest paymentdates are April 1 and October 1, and the company uses thestraight-line method of bond discount amortization. On March 1,2018, Whispering took advantage of favorable prices of its stock toextinguish 4,800 of the bonds by issuing 200,000 shares of its $10par value common stock. At this time, the accrued interest was paidin cash. The companyâs stock was selling for $31 per share on March1, 2018. Prepare the journal entries needed on the books ofWhispering Company to record the following. (Round intermediatecalculations to 6 decimal places, e.g. 1.251247 and final answersto 0 decimal places, e.g. 38,548. If no entry is required, select"No Entry" for the account titles and enter 0 for the amounts.Credit account titles are automatically indented when amount isentered. Do not indent manually.) (a) April 1, 2017: issuance ofthe bonds. (b) October 1, 2017: payment of semiannual interest. (c)December 31, 2017: accrual of interest expense. (d) March 1, 2018:extinguishment of 4,800 bonds. (No reversing entries made.) No.Date Account Titles and Explanation Debit Credit (a) 4/1/17 (b)10/1/17 (c) 12/31/17 (d) 3/1/18 (To record payment to retiringbondholders) 3/1/18 (To record extinguishment of the bonds) SHOWLIST OF ACCOUNTS
Problem 14-7 On April 1, 2017, Whispering Company sold 33,300 ofits 11%, 16-year, $1,000 face value bonds at 97. Interest paymentdates are April 1 and October 1, and the company uses thestraight-line method of bond discount amortization. On March 1,2018, Whispering took advantage of favorable prices of its stock toextinguish 4,800 of the bonds by issuing 200,000 shares of its $10par value common stock. At this time, the accrued interest was paidin cash. The companyâs stock was selling for $31 per share on March1, 2018. Prepare the journal entries needed on the books ofWhispering Company to record the following. (Round intermediatecalculations to 6 decimal places, e.g. 1.251247 and final answersto 0 decimal places, e.g. 38,548. If no entry is required, select"No Entry" for the account titles and enter 0 for the amounts.Credit account titles are automatically indented when amount isentered. Do not indent manually.) (a) April 1, 2017: issuance ofthe bonds. (b) October 1, 2017: payment of semiannual interest. (c)December 31, 2017: accrual of interest expense. (d) March 1, 2018:extinguishment of 4,800 bonds. (No reversing entries made.) No.Date Account Titles and Explanation Debit Credit (a) 4/1/17 (b)10/1/17 (c) 12/31/17 (d) 3/1/18 (To record payment to retiringbondholders) 3/1/18 (To record extinguishment of the bonds) SHOWLIST OF ACCOUNTS
