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can anyone help me with this question? thanks Problem 10-11A (Part Level Submission) On January 1, 2017, Riverbed Company issued $1,930,000 face value, 996, 10-year
can anyone help me with this question? thanks
Problem 10-11A (Part Level Submission) On January 1, 2017, Riverbed Company issued $1,930,000 face value, 996, 10-year bonds at $2,059,503. This price resulted in a 8% effective-interest rate on the bonds. Riverbed uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. 1. The issuance of the bonds on January 1, 2017. 2. Accrual of interest and amortization of the premium on December 31, 2017. 3. The payment of interest on January 1, 2018. 4. Accrual of interest and amortization of the premium on December 31, 2018. No. Date Account Titles and Explanation Debit Credit 1. Jan. 1, 2017Cash 2,059,503 Bonds Payable 1,930,000 Premium on Bonds Payable 129,503 2. Dec. 31, 2017 Interest Expense 164,760 Premium on Bonds Payable 8,940 Interest Payable 173,700 3. Jan. 1, 2018 Interest Payable 173,700 Cash 173,700 4. Dec. 31, 2018 Interest Expense 164,045 Premium on Bonds Payable 9,655 Interest Payable 173,700 Your answer is correct. Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2018. (Round answers to o decimal places, e.g. 125.) RIVERBED COMPANY Balance Sheet (Partial) December 31, 2018 Long-term Liabilities 1930000 Bonds Payable Add 4l, Premium on Bonds Payable 110908 2040908 Click if you would like to Show Work for this question: Open Show Work Provide the answers to the following questions. 1. What amount of interest expense is reported for 2018? (Round answer to O decimal places, e.g. 125.) Interest expense to be reported the amount that would be reported if the 2. The bond interest expense reported in 2018 would be straight-line method of amortization were used Click if you would like to Show Work for this question: Open Show Work Attempts: 0 of 3 usedStep by Step Solution
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