Question
In an Excel Document, each question on different tabs/sheets. Part One: Carrying value, Aug. 31, Year 2: $256,937.50 BONDS ISSUED AT A PREMIUM Wang Corporation
In an Excel Document, each question on different tabs/sheets.
Part One: Carrying value, Aug. 31, Year 2: $256,937.50
BONDS ISSUED AT A PREMIUM Wang Corporation issued the following bonds at a premium:
Date of issue and sale:
March 1, 20-1
Principal amount:
$250,000
Sale price of bonds:
103
Denomination of bonds:
$500
Life of bonds:
20 years
Stated rate:
8%, payable semiannually on August 31 and February 28
- 1. Prepare journal entries for:
- (a) Issuance of the bonds at a premium.
- (b) Interest payment and premium amortization on the bonds on August 31, 20-1.
- (c) Year-end adjustment on the bonds for 20-1.
- (d) Reversing entry for the beginning of 20-2.
- (e) Interest payments and premium amortization on the bonds for 20-2 (February 28 and August 31).
- 2. Calculate the carrying value of the bonds on August 31, 20-2.
Part Two: Carrying value, Sept. 30, Year 2: $579,600
BONDS ISSUED AT A DISCOUNT Brandon, Inc., issued the following bonds at a discount:
Date of issue and sale:
April 1, 20-1
Principal amount:
$600,000
Sale price of bonds:
96
Denomination of bonds:
$1,000
Life of bonds:
10 years
Stated rate:
7%, payable semiannually on September 30 and March 31
- 1. Prepare journal entries for:
- (a) Issuance of the bonds at a discount.
- (b) Interest payment and discount amortization on the bonds on September 30, 20-1.
- (c) Year-end adjustment on the bonds for 20-1.
- (d) Reversing entry for the beginning of 20-2.
- (e) Interest payments and discount amortization on the bonds for 20-2 (March 31 and September 30).
- 2. Calculate the carrying value of the bonds on September 30, 20-2.
- 3. Prepare the bonds payable section of a partial balance sheet as of September 30, 20-2.
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