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Instruction Chart of Accounts Journal Final Questions Instructions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year Year 1

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Instruction Chart of Accounts Journal Final Questions Instructions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year Year 1 July 1 Dec 31 Issued 574,000,000 of 20 year, 11% collable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of 563,532,267. Interest is payable semiannually on December 31 and June 30. Paid the semiannual interest on the bonds. The bond discount amortization of 5261,693 is combined with the semiannual interest payment Closed the interest expense account 31 Year 2 June 30 Paid the semiannual interest on the bonds. The bond discount amortization of S261,693 is combined with the semiannual interest payment Instructions Chart of Accounts Journal Final Questions Instructions Year 2 June 30 Dec 31 Paid the semiannual interest on the bonds. The bond discount amortization of S261,693 is combined with the semiannual interest payment. Paid the semiannual interest on the bonds. The bond discount amortization of S261,693 is combined with the semiannual interest payment. Closed the interest expense account. 31 Year 3 June 30 Recorded the redemption of the bonds, which were called at 90. The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. (Record the redemption only) tructions 31 Closed the interest expense account Year 3 June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is 59,420,961 after payment of interest and amortization of discount have been recorded. (Record the redemption only) EQU Required: 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Be sure to include the year in the date for the entries Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. 3. Determine the carrying amount of the bonds as of December 31. Year 2 Instructions Chart of Accounts Journal Final Questions Chart of Accounts CHART OF ACCOUNTS Winklevoss Inc. General Ledger PAGE 10 ASSETS REVENUE ) ATION 110 Cash EQUITY 111 Petty Cash 121 Accounts Receivable 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds 122 Allowance for Doubtful Accounts 126 Interest Receivable EXPENSES Instructions Chart of Accounts Journal Final Questions Chart of Accounts ASSETS REVENUE 110 Cash 111 Petty Cash 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds 121 Accounts Receivable 122 Allowance for Doubtlul Accounts PAGE 126 interest Receivable ATION COURT 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 142 Store Supplies 151 Prepaid insurance EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and over 521 Sales Salaries Expense 522 Office Salaries Expense 631 Advertising Expense 191 Land Instructions Chan of Accounts Journal Final Questions Chart of Accounts 151 Prepaid Insurance 191 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 522 Oca Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Experises 535 Rent Expense 536 Insurance Expense LIABILITIES 537 Office Supplies Expense 538 Store Supplies Expense 541 Bad Debt Expense 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment Instructions Chant of Accounts Journal Final Questions Chart of Accounts 221 Saianes Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bands Payable 501 o Deot Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds EQUITY 311 Common Stock 312 Paid-in Capital in Excess of Par Common Stock 315 Treasury Stock Chart of Accounts SL LUCA 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-in Capital in Excess of Par-Preferred Stock 331 Paid-in Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary

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