Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you please solve the whole question in the given pattern and according to the pictures On May 1, 2021. Wildhorse Corp. issued $885,000 of

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

can you please solve the whole question in the given pattern and according to the pictures

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. 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 the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation May 1 Bonds Payable 885000 Cash 885000 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 % e Textbook and Media List of Accounts A Prepare an effective interest amortization table for this bond. (Round answers to decimal places, eg. 5,276.) Wildhorse CORP. Bond Discount Amortization Table Effective Interest MethodAnnual Interest Payments Interest Payment Interest Expense Discount Amortization 9 s Bond Amortized Cost Date $ May 1, 2021 $ May 1, 2022 May 1, 2023 May 1, 2024 May 1 2025 May 1, 2026 EN 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 to the account titles and enter for the amounts. Round answers to decimal places, s. 5.276.) Date Account Titles and Explanation Debit Credit Apr. 30 (To accrue interest expense.) e Textbook and Media List of Accounts 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 Ofor the amounts) Debit Credit Date Account Titles and Explanation May 1 (To record interest payment) 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 Dec. 31 Credit (To accrue interest expense.) May 1 (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 Ofor the amounts. Round answers to decimal places, es. 5,276.) Debit Credit Date Account Titles and Explanation May 1 (To record redemption of bonds.)

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

How To Audit ISO 9001 2015 A Handbook For Auditors

Authors: Chad Kymal

1st Edition

087389927X, 978-0873899277

More Books

Students also viewed these Accounting questions

Question

=+ (b) Show that log2 n + log2 log, log, n is an inner boundary.

Answered: 1 week ago