Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone help me this question? Problem 10-10A (Part Level Submission) On January 1, 2017, Culver Corporation issued $1,780,000 face value, 896, 10-year bonds at

image text in transcribedimage text in transcribedimage text in transcribedcan someone help me this question?

Problem 10-10A (Part Level Submission) On January 1, 2017, Culver Corporation issued $1,780,000 face value, 896, 10-year bonds at $1,561,253. This price resulted in an effective-interest rate of 10% on the bonds. Culver uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. Date Account Titles and Explanation Debit Credit Jan. 1 Cash 1561253 Discount on Bonds Payable 218747 Bonds Payable 1780000 Your answer is correct Prepare an amortization table through December 31, 2019 (three interest periods) for this bond issue. (Round answers to 0 decimal places, e.g. 125.) CULVER CORP Bond Discount Amortization Effective-Interest Method-Annual Interest Payments Interest Expense Bond Value 1,561,253 1,574,978 1,590,076 1,606,684 Annual Interest Periods Interest to Be Paid Carrying to Be Recorded Discount Amortization Unamortized Discount Issue date 218,747 142,400 142,400 142,400 156,125 157,498 159,008 13,725 15,098 16,608 205,022 189,924 173,316 Open Show Work 2 Click if you would like to Show Work for this question: Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2017. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Click if you would like to Show Work for this question: Open Show Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

BMW Brand Audit

Authors: Marion Maguire

1st Edition

3638653137, 978-3638653138

More Books

Students also viewed these Accounting questions

Question

5. Identify the logical fallacies, deceptive forms of reasoning

Answered: 1 week ago

Question

6. Choose an appropriate organizational strategy for your speech

Answered: 1 week ago