Mastery Problem: Liabilities: Bonds Payable Spring Fit Corporation You are an accounting intem 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 as follows: Journal Entries, Year 1 Journal Date Jan. 1 Credit Description Cash Premium on Bonds Payable Bonds Payable Debit 1,062,060 62,060 1,000,000 Jun 30 Interest Expense Premium on Bonds Payable Cash 19,397 3.103 22.500 Jul. 1 Cash Discount on Bonds Payable Bonds Payable 1.729,164 70.836 1.800,000 Dec 31 Interest Expense Premium on Bonds Payable 19,397 2,102 Cash 22.500 Check My Work Review the journal entries on the SpringFit Corporation panel, then answer the following questions. 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 2. Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date. July 1 3. How much interest was paid during the year on the bonds in question (2) 4. What is the carrying amount of the bonds in question (2) at the end of the year? K 5. Which entry shows bonds that sold for more than their face amount? Choose the date Jan. 1 6. How much interest was paid during the year on the bonds in question (5) 7. Assuming that straight-line amortization is used for the bonds in question (5). what is the bond lite? 10 years 8. What is the carving value of the bonds in question 57 at the end of the var? CengageNOWV2 Online teachir X + bw.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogr 5. Which entry shows bonds that sold for more than their face amount? Choose the date: Jan. 1 6. How much interest was paid during the year on the bonds in question (5)? X 7. Assuming that straight-line amortization is used for the bonds in question (5), what is the bond life? 10 years 8. What is the carrying value of the bonds in question (5) at the end of the year? Mastery Problem: Liabilities: Bonds Payable Spring Fit Corporation You are an accounting intem 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 as follows: Journal Entries, Year 1 Journal Date Jan. 1 Credit Description Cash Premium on Bonds Payable Bonds Payable Debit 1,062,060 62,060 1,000,000 Jun 30 Interest Expense Premium on Bonds Payable Cash 19,397 3.103 22.500 Jul. 1 Cash Discount on Bonds Payable Bonds Payable 1.729,164 70.836 1.800,000 Dec 31 Interest Expense Premium on Bonds Payable 19,397 2,102 Cash 22.500 Check My Work Review the journal entries on the SpringFit Corporation panel, then answer the following questions. 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 2. Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date. July 1 3. How much interest was paid during the year on the bonds in question (2) 4. What is the carrying amount of the bonds in question (2) at the end of the year? K 5. Which entry shows bonds that sold for more than their face amount? Choose the date Jan. 1 6. How much interest was paid during the year on the bonds in question (5) 7. Assuming that straight-line amortization is used for the bonds in question (5). what is the bond lite? 10 years 8. What is the carving value of the bonds in question 57 at the end of the var? CengageNOWV2 Online teachir X + bw.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogr 5. Which entry shows bonds that sold for more than their face amount? Choose the date: Jan. 1 6. How much interest was paid during the year on the bonds in question (5)? X 7. Assuming that straight-line amortization is used for the bonds in question (5), what is the bond life? 10 years 8. What is the carrying value of the bonds in question (5) at the end of the year