Book Show Me How Entries for bonds payable and installment note transactions Instructions Chart of Accounts Journal Final Questions Instructions The following transactions were completed by Winklevoss Inc, whose fiscal year is the calendar year Year 1 July 1 Oct 1 Issued 576,600,000 of 20-year, 8% collable bonds dated July 1 Year 1 at a market effective) rate of 9% receiving cash of 508,062,279. Interest is payable semiannualy on December 31 and June 30 Borrowed $220,000 by issuing a six-year, 7% Instalment role to Nicks Bank. The note requires annual payments of $46,106, with the first payment occurring on September 30, Year 2 Accrued $3.050 of interest on the installment note. The interest is payable on the date of the next installment note payment Paid the semiannual interest on the bonds. The bond discount amortization of $176.193 is combined with the semiannual interest payment Ded 31 31 Year 2 June 30 Sept 30 Dec 31 Paid the semiannual interest on the bonds. The bond discount amortization of $176.193 is combined with the semiannual interest payment Paid the annual payment on the note, which consisted of interest of $15.400 and principal of $30.765. Accrued $3,312 of interest on the installment note The interest is payable on the date of the next installment note payment Paid the semiannual interest on the bonds The band discount amortization of 3176,193 is combined with the semiannual interest payment 31 Year June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $6 342,949 after payment of interest and amortization of discount have been recorded with the semiannual interest payment. Year 2 June 30 Sept 30 Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $176,193 is combined with the semiannual interest payment Paid the annual payment on the note, which consisted of interest of S15,400 and principal of $30,755 Accrued $3,312 of interest on the installment note. The interest is payable on the date of the next installment note payment Paid the semiannual interest on the bonds. The bond discount amortization of $176,193 is combined with the semiannual interest payment. 31 Year 3 June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $6,342,949 after payment of interest and amortization of discount have been recorded Record the redemption only, 30 Paid the second annual payment on the note, which consisted of interest of $13,247 and principal of $32,908 Sept Required: 1. Journalize the entries to record the foregoing transactions. Round al amounts to the nearest cellar. Refer to the Chart of Accounts for exact wording of account titles 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2 3. Determine the carrying amount of the bonds as of December 31, Year 2 neck My Work CHART OF ACCOUNTS Winklevoss Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 142 Store Supplies 151 Prepaid Insurance EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 521 Sales Sataries Expense 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 191 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment KB Insurance Fyense 194 Office Equipment 195 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 541 Bad Debt Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds EQUITY 311 Common Stock 312 Paid-in Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid in Capital in Excess of Par.Preferred Stock 331 Paid-in Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary GOW ME ON Joumai 1. Journalce the entries to record the foregoing transactions. Round w amounts to the nearest dotar. Refer to the chart of Accounts for exact wording of account to Year 1 PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REY DET CREDIT ASSETS LIABILITIES EQUITY Year 2 Previous Check My Work All Wed Save and Ex Submit Assignment for Gras Year 2 PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST PET DEBIT CREDIT ASSETS LIASILITIES QUITY 11 Year 3 Yoar 3 PINGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEST CREDIT ASSETS LALITIES EQUITY 2 1 . 5 Previou Check My Work Final Questions 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2 a. Year 1: $ s b. Year 2: 3. Determine the carrying amount of the bonds as of December 31, Year 2. $ Check My Work All work saved Book Show Me How Entries for bonds payable and installment note transactions Instructions Chart of Accounts Journal Final Questions Instructions The following transactions were completed by Winklevoss Inc, whose fiscal year is the calendar year Year 1 July 1 Oct 1 Issued 576,600,000 of 20-year, 8% collable bonds dated July 1 Year 1 at a market effective) rate of 9% receiving cash of 508,062,279. Interest is payable semiannualy on December 31 and June 30 Borrowed $220,000 by issuing a six-year, 7% Instalment role to Nicks Bank. The note requires annual payments of $46,106, with the first payment occurring on September 30, Year 2 Accrued $3.050 of interest on the installment note. The interest is payable on the date of the next installment note payment Paid the semiannual interest on the bonds. The bond discount amortization of $176.193 is combined with the semiannual interest payment Ded 31 31 Year 2 June 30 Sept 30 Dec 31 Paid the semiannual interest on the bonds. The bond discount amortization of $176.193 is combined with the semiannual interest payment Paid the annual payment on the note, which consisted of interest of $15.400 and principal of $30.765. Accrued $3,312 of interest on the installment note The interest is payable on the date of the next installment note payment Paid the semiannual interest on the bonds The band discount amortization of 3176,193 is combined with the semiannual interest payment 31 Year June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $6 342,949 after payment of interest and amortization of discount have been recorded with the semiannual interest payment. Year 2 June 30 Sept 30 Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $176,193 is combined with the semiannual interest payment Paid the annual payment on the note, which consisted of interest of S15,400 and principal of $30,755 Accrued $3,312 of interest on the installment note. The interest is payable on the date of the next installment note payment Paid the semiannual interest on the bonds. The bond discount amortization of $176,193 is combined with the semiannual interest payment. 31 Year 3 June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $6,342,949 after payment of interest and amortization of discount have been recorded Record the redemption only, 30 Paid the second annual payment on the note, which consisted of interest of $13,247 and principal of $32,908 Sept Required: 1. Journalize the entries to record the foregoing transactions. Round al amounts to the nearest cellar. Refer to the Chart of Accounts for exact wording of account titles 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2 3. Determine the carrying amount of the bonds as of December 31, Year 2 neck My Work CHART OF ACCOUNTS Winklevoss Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 142 Store Supplies 151 Prepaid Insurance EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 521 Sales Sataries Expense 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 191 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment KB Insurance Fyense 194 Office Equipment 195 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 541 Bad Debt Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds EQUITY 311 Common Stock 312 Paid-in Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid in Capital in Excess of Par.Preferred Stock 331 Paid-in Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary GOW ME ON Joumai 1. Journalce the entries to record the foregoing transactions. Round w amounts to the nearest dotar. Refer to the chart of Accounts for exact wording of account to Year 1 PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REY DET CREDIT ASSETS LIABILITIES EQUITY Year 2 Previous Check My Work All Wed Save and Ex Submit Assignment for Gras Year 2 PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST PET DEBIT CREDIT ASSETS LIASILITIES QUITY 11 Year 3 Yoar 3 PINGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEST CREDIT ASSETS LALITIES EQUITY 2 1 . 5 Previou Check My Work Final Questions 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2 a. Year 1: $ s b. Year 2: 3. Determine the carrying amount of the bonds as of December 31, Year 2. $ Check My Work All work saved