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Hi can you help me with this. I need help with number 3: I tried it this way, but can you check my work? 2)
Hi can you help me with this. I need help with number 3: I tried it this way, but can you check my work?
2) On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face amount of $200,000. The bonds sold for $239,588 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization. Required: 1. Prepare the journal entry to record the bond issuance on February 1, 2018. 2. Prepare the entry to record interest on July 31, 2018. 3. Prepare the necessary journal entry on December 31, 2018. Face 200,000 stated 10% effective 8% 20yrs 713112 1/ 31 O Cash 239,588 Bands Payable 200,000 Os Premium Bonds payable 39,588 10,000 2-Interest expense 9584 I Premium on Bonds payable 416 4%.8 239,588 Cash (57. x 200,000) Interest expense 8.000 Premium an Bonds 333 sid. Interest payable 8333 5/6 *47. [239,598 +4162 ar 516*.5% 200,000 al g brod non
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