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Hello accountant Please help me with this question. I completed %90 of it but there is still two blank boxes that confused me a lot....
Hello accountant
Please help me with this question. I completed %90 of it but there is still two blank boxes that confused me a lot....
Wedge Inc. is planning to purchase $314,000 worth of 6year bonds issued by William Company, a publically traded company in Ontario, on January 1, 2016 for $298,372. The interest rate of the bonds is 5% annually; payments are made semiannually on June 30 and December 31 every year. The interest rate paid by similar bonds is at 6% per year in the market. Wedge Inc. has a December 31 yearend. Required Prepare journal entries for the bonds' acquisition, the first and last interest payments and retirement of the bonds on January 1, 2022. Do not enter dollar signs or commas in the input boxes. For transactions that have 2 debits or 2 credits, enter the accounts in alphabetical order. Round all answers to the nearest whole number. Date Jan 1, 2016 Account Title and Explanation Answer Long-Term Investment Debit Credit Answer 298372 Answer Answer Cash 298372 To record purchase of bonds at discount Jun 30, 2016 Answer Answer Cash 7850 Answer Answer Long-Term Investment 1101 Answer Answer Interest Revenue 8951 To record cash received and amortized discount Dec 31, 2021 Answer Answer Cash 7850 Answer Answer Long-Term Investment Answer Answer Interest Revenue To record cash received and amortized discount Jan 1, 2022 Answer Answer Cash Answer Long-Term Investment To record receipt of cash at maturity Check 314000 Answer 314000Step by Step Solution
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