Sweetwood Company issues $6,000,000, 10-year, 12% bonds at 95,with interest payable annually on January 1. The straight-linemethod is used to amortize bond discount.
(A) Prepare the journal entry to record the sale of these bondson January 1, 2017. (Credit account titles areautomatically indented when amount is entered. Do not indentmanually.)
(B) Prepare the adjusting journal entry to record interestexpense and bond discount amortization on December 31, 2017.(Credit account titles are automatically indented whenamount is entered. Do not indent manually.)
I need help with part B please
Brief Exercise 15-11 (Part Level Submission) Sweetwood Company Issues $6,000,000, 10-year, 12% bonds at 95, with interest payable annually on January 1. The straight-line method Is used to amortize bond discount. â¼ (a) Your answer Is correct Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 5,700,000 DIscount on Bonds Payabl 300,000 Bonds Payable 6,000,000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER â¼ (b) Your answer is partially correct. Try agaln. Prepare the adjusting journal entry to record Interest expense and bond discount amortizatlon on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 TInterest Expense 720,000 Premlum on Bonds Pay 30,000 Discount on Bonds Pay 30,000
Show transcribed image textBrief Exercise 15-11 (Part Level Submission) Sweetwood Company Issues $6,000,000, 10-year, 12% bonds at 95, with interest payable annually on January 1. The straight-line method Is used to amortize bond discount. â¼ (a) Your answer Is correct Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 5,700,000 DIscount on Bonds Payabl 300,000 Bonds Payable 6,000,000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER â¼ (b) Your answer is partially correct. Try agaln. Prepare the adjusting journal entry to record Interest expense and bond discount amortizatlon on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 TInterest Expense 720,000 Premlum on Bonds Pay 30,000 Discount on Bonds Pay 30,000
On May 1, 2012, Chance Corp. issued $427,800, 9%, 5-year bondsat face value. The bonds were dated May 1, 2012, and pay interestsemiannually on May 1 and November 1. Financial statements areprepared annually on December 31.
(a) Prepare the journal entry to record the issuance of the bonds.(Credit account titles areautomatically indented when amount is entered. Do not indentmanually.)
(b) Prepare the adjusting entry to record the accrual ofinterest on December 31, 2012. (Credit account titles are automaticallyindented when amount is entered. Do not indentmanually.)
(c) Show the balance sheet presentation on December 31, 2012.(For Bonds Payable, Notes Payable andMortgage payable enter the account name only and do not provide anyadditional descriptive information e.g. due 2017.)
(d) Prepare the journal entry to record payment of interest onMay 1, 2013, assuming no accrual of interest from January 1, 2013,to May 1, 2013. (Credit accounttitles are automatically indented when amount is entered. Do notindent manually.)
(e) Prepare the journal entry to record payment of interest onNovember 1, 2013. (Credit accounttitles are automatically indented when amount is entered. Do notindent manually.)
(f) Assume that on November 1, 2013, Chance calls the bonds at104. Record the redemption of the bonds. (Credit account titles are automaticallyindented when amount is entered. Do not indentmanually.)
