Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CALCULATOR PLINTER VERSION BACK NI Problem 14-2 Riverbed Co. is building a new hockey arena at a cost of $2,730,000. It received a downpayment of

image text in transcribed
image text in transcribed
image text in transcribed
CALCULATOR PLINTER VERSION BACK NI Problem 14-2 Riverbed Co. is building a new hockey arena at a cost of $2,730,000. It received a downpayment of $470,000 from local businesses to support the project, and now needs to borrow $2,260,000 to complete the project. It therefore decides to issue $2,260,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 10%. Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2016. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o decimal places e.g. 58,971. IF no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2016 Cash 2398861 Premium on Bonds Payable 138861 Bonds Payable 2260000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SaROW ANSWER LINK TO TEXT LINK TO TEXT CALCULATOA Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to o decimal places, e.. Carrying Cash Interest Premium Amount of Date Paid Expense Amortization Bonds 1/1/16 2398861 1/1/17 248600 239886 8714 2390147 1/1/18 248600 239015 9585 2380562 1/1/19 248600 238056 10544 2370018 1/1/20 248600 237002 11598 2358420 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT LINK TO TEXT CALCULATOR PRINTER VERSION 4 RACK Assume that on July 1, 2019, Riverbed Co, redeems half of the bonds at a cost of $1,193,900 plus accrued interest. Prepare the journal entry to record this redemption (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1, 2019 interest Expense 119028 Premium on Bonds Payable 5272 124300 Interest Payable (To record interest) 1130000 July 1, 2019 TBonds Payable 124300 Interest Payable 57645 Premium on Bonds Payable 1310200 Cash (To record reacquisition) chini Open Show. Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions