Question
Can you please help me with 1 and 3 on the bottom? Exercise 14-9 On June 30, 2017, Windsor Company issued $4,300,000 face value of
Can you please help me with 1 and 3 on the bottom?
Exercise 14-9 On June 30, 2017, Windsor Company issued $4,300,000 face value of 13%, 20-year bonds at $4,623,487, a yield of 12%. Windsor uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Correct answer. Your answer is correct. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2017. (2) The payment of interest and the amortization of the premium on December 31, 2017. (3) The payment of interest and the amortization of the premium on June 30, 2018. (4) The payment of interest and the amortization of the premium on December 31, 2018. No. Date Account Titles and Explanation Debit Credit (1) June 30, 2017 Entry field with correct answer Cash Entry field with correct answer 4623487 Entry field with correct answer Entry field with correct answer Bonds Payable Entry field with correct answer Entry field with correct answer 4300000 Entry field with correct answer Premium on Bonds Payable Entry field with correct answer Entry field with correct answer 323487 (2) December 31, 2017 Entry field with correct answer Interest Expense Entry field with correct answer 277409 Entry field with correct answer Entry field with correct answer Premium on Bonds Payable Entry field with correct answer 2091 Entry field with correct answer Entry field with correct answer Cash Entry field with correct answer Entry field with correct answer 279500 (3) June 30, 2018 Entry field with correct answer Interest Expense Entry field with correct answer 277284 Entry field with correct answer Entry field with correct answer Premium on Bonds Payable Entry field with correct answer 2216 Entry field with correct answer Entry field with correct answer Cash Entry field with correct answer Entry field with correct answer 279500 (4) December 31, 2018 Entry field with correct answer Interest Expense Entry field with correct answer 277151 Entry field with correct answer Entry field with correct answer Premium on Bonds Payable Entry field with correct answer 2349 Entry field with correct answer Entry field with correct answer Cash Entry field with correct answer Entry field with correct answer 279500 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Partially correct answer. Your answer is partially correct. Try again. Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2018, balance sheet. (Round answers to 0 decimal places, e.g. 38,548.) Windsor Company Balance Sheet Entry field with correct answer Entry field with correct answer Entry field with correct answer Bonds Payable $Entry field with correct answer 4300000 Entry field with correct answer Premium on Bonds Payable Entry field with correct answer 316831 Entry field with correct answer $Entry field with incorrect answer now contains modified data 4616831 SHOW LIST OF ACCOUNTS LINK TO TEXT Partially correct answer. Your answer is partially correct. Try again. Provide the answers to the following questions. (1) What amount of interest expense is reported for 2018? (Round answer to 0 decimal places, e.g. 38,548.) Interest expense reported for 2018 $Entry field with incorrect answer 5590000 (2) Will the bond interest expense reported in 2018 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond interest expense reported in 2018 will be Entry field with correct answer the amount that would be reported if the straight-line method of amortization were used. (3) Determine the total cost of borrowing over the life of the bond. (Round answer to 0 decimal places, e.g. 38,548.) Total cost of borrowing over the life of the bond $Entry field with incorrect answer 5266513 (4) Will the total bond interest expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used? The total bond interest expense for the life of the bond will be Entry field with correct answer the total interest expense if the straight-line method of amortization were used.
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