Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i just need help on part c on the red highlighted areas, i appreciate the help! Problem 14-02 (Part Level Submission) Windsor Co. is building

image text in transcribedimage text in transcribedi just need help on part c on the red highlighted areas, i appreciate the help! image text in transcribed

Problem 14-02 (Part Level Submission) Windsor Co. is building a new hockey arena at a cost of $2,630,000. It received a downpayment of $520,000 from local businesses to support the project, and now needs to borrow $2,110,000 to complete the project. It therefore decides to issue $2,110,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2019 Cash 2,234,245 Bonds Payable 2,110,000 Premium on Bonds Pay 124,245 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT (b) Your answer is correct. Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.) Cash Paid Interest Expense Premium Amortization Carrying Amount of Bonds Date 1/1/19 2,234,245 1/1/20 253,200 245,767 7,433 2,226,812 1/1/21 253,200 244,949 8,251 2,218,561 1/1/22 253,200 244,042 9,158 2,209,403 1/1/23 253,200 243,032 10,166 2,199,237 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Attempts: 1 of 5 used Your answer is partially correct. Try again. Assume that on July 1, 2022, Windsor Co. redeems half of the bonds at a cost of $1,122,300 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1, 2022 Interest Expense 60,758.5 Premium on Bonds Payable 2,541.5 Cash 63,300 (To record interest) July 1, 2022 Bonds Payable 1,002,757 Premium on Bonds Payable 104,486 Loss on Redemption of Boi 15,057 Cash 1,122,300 (To record reacquisition)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

21st Edition

978-1259916984

More Books

Students also viewed these Accounting questions

Question

What requirement did Health Canada initially require of Aurora?

Answered: 1 week ago