Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Instructions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year 2011 July 1 Issued $74,000,000 of 20-year, 11% callable
Instructions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year 2011 July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. Dec 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y2 June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261.693 is combined with the semiannual interest payment. Dec 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261.693 is combined Instructions Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y3 June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the band discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. (Record the redemption only.) Required: 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. 3. Determine the carrying amount of the bonds as of December 31, 20Y2. Journal 1a. Journalize the entries to record the 20Y1 transactions. Round all amounts to the nearest dollar Refer to the Chart of Accounts for exact wordir JOURNAL ACCO DATE DESCRIPTION POST. REF. DEBIT CREDIT 2 3 Scuons Journal o record the 20Y1 transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles PAGE 10 JOURNAL ACCOUNTING EQUATION DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Final Questions 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 2012. Enter amounts as positive number. 20Y1: $ 20Y2: $ 3. Determine the carrying amount of the bonds as of December 31, 20Y2. $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started