Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Current Attempt in Progress On April 1, 2020. Cheyenne Corp. sold 11,900 of its $1,000 face value, 15-year, 12% bonds at 88. Interest payment dates
Current Attempt in Progress On April 1, 2020. Cheyenne Corp. sold 11,900 of its $1,000 face value, 15-year, 12% bonds at 88. Interest payment dates are April 1 and October 1. The company uses the effective interest method. On March 1, 2021, Cheyenne extinguished 2,975 of the bonds by issuing 91.600 shares. At this time, the accrued interest was paid in cash to the bondholders whose bonds were being extinguished. In a separate transaction on March 1, 2021, 120,000 of tire company's shares sold for $31 per share. (a 1) 2 / 10 Provide an effective interest table for the bonds for two interest payment periods. (Round yield values to 4 decimal places, e.g. 52.7521 and final answers to 2 decimal places, e.g. 52.75.) Schedule of Bond Discount Amortization Effective Interest Method Date Cash Paid Interest Expense Discount Amortized Carryin April 1'20 $ Oct. 120 April 1'21 Prepare Cheyenne Corp.'s journal entry to record the issuance of the bonds on April 1, 2020. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit 4/1/20 Cash 10472000 Bonds Payable 10472000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started