ACC 112 Project 1D

Following are independent situations:

Nicholas Ram Corporation have a $1,900,000 "bond issue" dated March 1, 2016 due in 15 years with an annual interest rate of 12%. Interest is payable March 1 and September 1. On August 1, 2016, the bond was sold for $1,978,750 plus accrued interest.

Using the straight-line method, prepare the general journal entries for each of the following:

a)The issuance of the bond on August 1, 2016.

b)Payment of the semi-annual interest and the amortization of the premium on September 1, 2016.

c)Accrual of the interest and the amortization of the premium on December 31, 2016.

d)Payment of the semi-annual interest and the amortization of the premium on March 1, 2017.

(Credit account titles are automatically indented when the amount is entered.Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.)

Date

Account Titles and Explanation

Debit

Credit

2016Aug. 1

Bond Interest Payable

Bonds Payable

Bond Interest Expense

Cash

Discount on Bonds Payable

Premuim on Bonds Payable

Cash

Discount on Bonds Payable

Premuim on Bonds Payable

Bond Interest Expense

Bond Interest Payable

Bonds Payable

Bonds Payable

Discount on Bonds Payable

Cash

Bond Interest Expense

Premuim on Bonds Payable

Bond Interest Payable

Bonds Payable

Cash

Discount on Bonds Payable

Bond Interest Expense

Premuim on Bonds Payable

Bond Interest Payable

Sept. 1

Premuim on Bonds Payable

Bond Interest Expense

Discount on Bonds Payable

Bond Interest Payable

Cash

Bonds Payable

Bond Interest Expense

Discount on Bonds Payable

Cash

Bond Interest Payable

Bonds Payable

Premuim on Bonds Payable

Bond Interest Payable

Discount on Bonds Payable

Bonds Payable

Bond Interest Expense

Cash

Premuim on Bonds Payable

Bonds Payable

Bond Interest Expense

Bond Interest Payable

Cash

Discount on Bonds Payable

Premuim on Bonds Payable

Dec. 31

Bond Interest Payable

Bonds Payable

Cash

Premuim on Bonds Payable

Discount on Bonds Payable

Bond Interest Expense

Bond Interest Payable

Cash

Bonds Payable

Premuim on Bonds Payable

Discount on Bonds Payable

Bond Interest Expense

Premuim on Bonds Payable

Bonds Payable

Bond Interest Expense

Cash

Bond Interest Payable

Discount on Bonds Payable

2017Mar. 1

Cash

Premuim on Bonds Payable

Discount on Bonds Payable

Bond Interest Expense

Bond Interest Payable

Bonds Payable

Discount on Bonds Payable

Cash

Premuim on Bonds Payable

Bond Interest Payable

Bond Interest Expense

Bonds Payable

Discount on Bonds Payable

Cash

Premuim on Bonds Payable

Bond Interest Expense

Bond Interest Payable

Bonds Payable

Premuim on Bonds Payable

Bonds Payable

Cash

Bond Interest Expense

Bond Interest Payable

Discount on Bonds Payable

Before moving onto the next section, please do the following (for screen help, click on the hyperlinks below):

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LINK TO TEXT

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Stephanie Ram Corporation have a $1,080,000 "bond issue" dated February 1, 2016 due in 10 years with an annual interest rate of 11%. Interest is payable February 1 and August 1. On April 1, 2016, the bond was sold for $1,015,100 plus accrued interest.

Using the straight-line method, prepare the general journal entries for each of the following:

a)The issuance of the bond on April 1, 2016.

b)Payment of the semi-annual interest and the amortization of the discount on August 1, 2016.

c)Accrual of the interest and the amortization of the discount on December 31, 2016.

d)Payment of the semi-annual interest and the amortization of the discount on February 1, 2017.

(Credit account titles are automatically indented when the amount is entered.Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.)

Date

Account Titles and Explanation

Debit

Credit

2016Apr. 1

Premuim on Bonds Payable

Bonds Payable

Bond Interest Expense

Bond Interest Payable

Cash

Discount on Bonds Payable

Bond Interest Payable

Bonds Payable

Cash

Discount on Bonds Payable

Premuim on Bonds Payable

Bond Interest Expense

Bond Interest Expense

Cash

Bond Interest Payable

Premuim on Bonds Payable

Bonds Payable

Discount on Bonds Payable

Premuim on Bonds Payable

Bond Interest Expense

Bond Interest Payable

Cash

Bonds Payable

Discount on Bonds Payable

Aug. 1

Bond Interest Expense

Discount on Bonds Payable

Cash

Bond Interest Payable

Bonds Payable

Premuim on Bonds Payable

Bond Interest Expense

Bond Interest Payable

Bonds Payable

Premuim on Bonds Payable

Cash

Discount on Bonds Payable

Discount on Bonds Payable

Bonds Payable

Bond Interest Payable

Cash

Premuim on Bonds Payable

Bond Interest Expense

Bonds Payable

Cash

Discount on Bonds Payable

Premuim on Bonds Payable

Bond Interest Expense

Bond Interest Payable

Dec. 31

Discount on Bonds Payable

Premuim on Bonds Payable

Bond Interest Expense

Bond Interest Payable

Bonds Payable

Cash

Premuim on Bonds Payable

Cash

Bonds Payable

Discount on Bonds Payable

Bond Interest Expense

Bond Interest Payable

Discount on Bonds Payable

Premuim on Bonds Payable

Bond Interest Expense

Bonds Payable

Cash

Bond Interest Payable

2017Feb. 1

Bond Interest Expense

Bonds Payable

Bond Interest Payable

Premuim on Bonds Payable

Discount on Bonds Payable

Cash

Bond Interest Expense

Bond Interest Payable

Discount on Bonds Payable

Bonds Payable

Cash

Premuim on Bonds Payable

Bond Interest Payable

Bond Interest Expense

Cash

Bonds Payable

Discount on Bonds Payable

Premuim on Bonds Payable

Bond Interest Expense

Bonds Payable

Cash

Discount on Bonds Payable

Premuim on Bonds Payable

Bond Interest Payable

Before moving onto the next section, please do the following (for screen help, click on the hyperlinks below):

1. Scroll to the end of the page and click on the "Save for Later" button to save your work.

2. When you are ready to begin the next section, you can reference the work that you have completed by clicking on the "Printer Version" button at the top of the page. Doing this will open your saved answers in a new window to help you complete the next section.

Complete these steps each time you have finished a section. Do not click on the "Submit Answers" button until you have completed all of the sections.

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