Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with questions 3,4,6,7,8, and 9! Thank you! Chapter 14 Homework Print Item SpringFit Corporation You are an accounting intern working for SpringFit

I need help with questions 3,4,6,7,8, and 9! Thank you!

image text in transcribedimage text in transcribedimage text in transcribed

Chapter 14 Homework Print Item SpringFit Corporation You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by SpringFit Corporation. Your first task is to review the previous year's journal entries, shown below. Journal Entries, Year 1 PAGE 15 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Jan. 1 Cash 1,008,960.00 2 Premium on Bonds Payable 58,960.00 3 Bonds Payable 950,000.00 4 Jun. 30 Interest Expense 18,427.00 5 Premium on Bonds Payable 2,948.00 6 Cash 21,375.00 7 Jul. 1 Cash 1,921,280.00 8 Discount on Bonds Payable 78,720.00 9 Bonds Payable 2,000,000.00 10 Oct. 1 Cash 1,100,000.00 Chapter 14 Homework Print Item 9 Bonds Payable 2,000,000.00 10 Oct. 1 Cash 1,100,000.00 11 Notes Payable 1,100,000.00 12 Dec. 31 Interest Expense 18,427.00 13 Premium on Bonds Payable 2,948.00 14 Cash 21,375.00 15 31 Interest Expense 16,500.00 16 Interest Payable 16,500.00 17 31 Interest Expense 41,560.00 18 Discount on Bonds Payable 6,560.00 19 Cash 35,000.00 20 31 Income Summary 94,914.00 21 Interest Expense 94,914.00 Bonds Payable Review the journal entries on the SpringFit Corporation panel, then answer the questions below. 1. Assuming that no bonds had been issued prior to Year 1, how many different bonds appear in the journal entries for this year? 2. Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date. 3. How much interest was paid during the year on the bonds in (2) above? $ 4. What is the carrying amount of the bonds in (2) above at the end of the year? $ 5. Which entry shows bonds that sold for more than their face amount? Choose the date. 6. How much interest was paid during the year on the bonds in (5) above? 7. Assuming that straight-line amortization is used for the bonds in (5), what is the bond life? 8. What is the carrying value of the bonds in (5) above at the end of the year? $ 9. Considering only the Year 1 journal entries, how much interest was probably accrued on the note payable issued during the year? $

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 Financial And Managerial Accounting Volume 2

Authors: Thomas D Hubbard

3rd Edition

0873934911, 978-0873934916

More Books

Students also viewed these Accounting questions