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Exercise 10-22 Cole Corporation issued $528,000,8%,23-year bonds on January 1, 2014, for $434,193. This price resulted in an effective-interest rate of10% on the bonds. Interest
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Prepare the journal entries to record the payment of interest on January 1, 2015.(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 |
Jan.1, 2015 | |||
Exercise 10-22 Cole Corporation issued $528,000, 8%, 23-year bonds on January 1, 2014, for $434,193. This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable annually on January 1. Cole uses the effective-interest method to amortize bond premium or discount. Your answer is partially correct. Try again. Prepare the schedule using effective-interest method to amortize bond premium or discount of Cole Corporation. (Round answers to 0 decimal places, e.g. 150.) Interest Periods Interest to Be Paid Interest Expense to Be Recorded $ $ Issue date 1 2 42,240 Discount Amortizatio n 43,419 Unamortize d Discount $ 1,179 Bond Carrying Value $ $ 93,807 434,193 92,628 435,372 42,240 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Prepare the journal entries to record the issuance of the bonds. (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 SHOW LIST OF ACCOUNTS Cash Jan. 1, 2014 LINK TO TEXT Debit Credit 434,193 Discount on B 93,807 Bonds Payable 528,000 Your answer is correct. Prepare the journal entries to record the accrual of interest and the discount amortization on December 31, 2014. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Date SHOW LIST OF ACCOUNTS Interest Expen Dec. 31, 2014 SHOW SOLUTION SHOW ANSWER Debit Credit 43,419 Discount on B 1,179 LINK TO TEXT LINK TO TEXT Interest Payab 42,240 Your answer is partially correct. Try again. Prepare the journal entries to record the payment of interest on January 1, 2015. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Jan. 1, 2015 Account Titles and Explanation Interest Payab Cash Debit Credit 42,240 42,240
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