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can you please correct my question On May 1, 2021, Wildhorse Corp. issued $885,000 of 5-year, 6% bonds at 96. The bonds pay interest annually
can you please correct my question
On May 1, 2021, Wildhorse Corp. issued $885,000 of 5-year, 6% bonds at 96. The bonds pay interest annually on May 1. Wildhorse's year end is April 30. Your answer is partially correct. Record the issue of the bonds on May 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit May 1 Bonds Payable 885000 Cash 885000 e Textbook and Media List of Accounts x Your answer is incorrect. Calculate the effective rate of the bonds using Excel or a financial calculator. (Round answer to 4 decimal places, eg. 1.5751.) Effective rate 6.98 % Your answer is partially correct. Prepare an effective interest amortization table for this bond. (Round answers to 0 decimal plaase. 5276) Wildhorse CORP. Bond Discount Amortization Table Effective Interest Method-Annual Interest Payments Interest Expense Discount Amortization Date Interest Payment Bond Amortized Cost May 1, 2021 $ $ $ i 35400 May 1, 2022 53100 59302 6202 29198 May 1, 2023 53100 59735 6635 22563 May 1, 2024 53100 60198 7098 15465 May 1, 2025 53100 60694 7594 7871 May 1, 2026 53100 61224 7871 Record the accrual of interest at April 30, 2022. (Credit account titles are automatically indented when the amount is entered Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal plaats, es 1.276) Debit Credit Date Account Titles and Explanation Apr. 30 Interest Expense 59302 Interest Payable 53100 Bonds Payable 6202 (To accrue interest expense) eTextbook and Media List of Accounts Your answer is correct. Record the interest payment on May 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation May 1 Interest Payable 53100 53100 (To record interest payment.) Pui uolly LOIELL Assuming instead that Wildhorse has a December 31, 2021, year end prepare the adjusting entry relating to these bonds and the subsequent interest payment on May 1, 2022. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts Round answers to decimal places, eg. 5,276.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense Bonds Payable Interest Payable (To accrue interest expense.) May 1 Interest Expense Interest Payable Bonds Payable 53100 Cash (To record interest payment.) Assume that on May 1, 2022, after payment of the interest, Wildhorse redeems all of the bonds at 102. Record the redemption of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts Round answers to decimal places eg. 5,276.) Date Account Titles and Explanation Debit Credit May 1 Bonds Payable 885000 Interest Payable 53100 Cash 938100 (To record redemption of bonds.)Step by Step Solution
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