Exercise 17-3 (Part Level Submission)

On January 1, 2017, Wildhorse Company purchased 10% bonds having a maturity value of $380,000, for $410,343.38. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Wildhorse Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

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(a)

[Partially correct answer.] Your answer is partially correct. Try again.

Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation Debit Credit Jan. 1, 2017 [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer]

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SHOW LIST OF ACCOUNTS LINK TO TEXT

Attempts: 3 of 3 used

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(b)

Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Date Cash Received Interest Revenue Premium Amortized Carrying Amount of Bonds 1/1/17 $ $ $ $ 1/1/18 1/1/19 1/1/20 1/1/21 1/1/22