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Hi I need help with solving the below questions in red. Thanks much. Lorance Corporation issued $808,000, 8%, 10-year bonds on January 1, 2015, for
Hi
I need help with solving the below questions in red. Thanks much.
Lorance Corporation issued $808,000, 8%, 10-year bonds on January 1, 2015, for $755,444. This price resulted in an effective-interest rate of 9% on the bonds. Interest is payable semiannually on July 1 and January 1. Lorance uses the effective interest method to amortize bond premium or discount. Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit Date Account Titles and Explanation Debit Jan. 17 Cash 55444 Discount on Bonds Payable 152556 Bonds Payable 1808000 Your answer is partially correct. Try again. Prepare the journal entry to record the payment of interest and the discount amortization on July 1, 2015, assuming that interest was not accrued on June 30. (Round answers to O decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 14 TInterest Expense 733995 Cash (1675 Discount on Bonds Payable PLX T732320 Your answer is partially correct. Try again. Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2015. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Tinterest Expense 134070 X U|1750 Tinterest Payable Discount on Bonds Payable 32320 Question Attempte. 1 of 2 ucedStep by Step Solution
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