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Attached is a homework question that I need help with. I have filled in a lot of it, but don't know if the answers are
Attached is a homework question that I need help with. I have filled in a lot of it, but don't know if the answers are correct.
Question 6 Presented below are selected transactions on the books of Simonson Corporation. May 1, 2014 Dec. 31 Jan. 1, 2015 April 1 Dec. 31 Bonds payable with a par value of $1,016,400, which are dated January 1, 2014, are sold at 107 plus accrued interest. They are coupon bonds, bear interest at 10% (payable annually at January 1), and mature January 1, 2024. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization.) Interest on the bonds is paid. Bonds with par value of $377,300 are called at 101 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Prepare journal entries for the transactions above. (Round answers to 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 is entered. Do not indent manually.) Date May 1, 2014 Account Titles and Explanation Cash Debit 1121428 Bonds Payable 1016400 Premium on Bo 71148 Interest Expen Dec. 31, 2014 Interest Expen Credit 33880 101640 Interest Payab 101640 (To record the interest) Premium on Bo 5929 Interest Expen 5929 (To amortize the premium) Jan. 1, 2015 Interest Payab Cash 101640 101640 Bonds Payable 377300 Premium on Bo 27786 Interest Expen Apr. 1, 2015 9433 Cash Gain on Redem Dec. 31, 2015 Interest Expen Interest Payab (To record the interest) Premium on Bo Interest Expen (To amortize the premium) Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 5 used SAVE FOR LATER Copyright 2000-2015 by John Wiley & Sons, Inc. or related companies. All rights reserved. SUBMIT ANSWERStep by Step Solution
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