Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need parts c and e please Chapter 14 Problem Bond interest and discount amortization. Grove Corporation issued $4,000,000 of 8% bonds on October 1, 2014,
need parts c and e please
Chapter 14 Problem Bond interest and discount amortization. Grove Corporation issued $4,000,000 of 8% bonds on October 1, 2014, due on October 1 , 2019.The interest is to be paid twice a year on April 1 and October l, The bonds were sold to yield 10% effective annual interest. Grove Corporation closes its books annually on December 31. Instructions (a) Complete the following amortization schedule for the dates indicated. (Round all nearest dollar.) Use the effective-interest method. answers to the Debit Credit October 1, 2014 April 1, 2015 October 1,2015 Carrying Amount $3,691,117 3,715, 73 I(o0, 000181,5524.55 llo0,000 las, 25,784 84, 2 , 194 3.741,457 (b) Prepare the adjusting entry for December 31, 2015 using the effective interest method. e13, 1.457 x . 10 x 3112) 93,534 Intcrest payable (Ie0,000x/z) duscount on boncls payaolc 8o,000 13,53Lo (c) Prepare the adjusting entry for December 31, 2015 using the straight line interest method. (d) Compute the effective interest expense to be reported in the income statement for the year ended December 31, 2015. Intcrest expensc to be reported - 184,550 x 111 + 185, 784 93,530 $37,5 Compute the straight-line interest expense to be reported in the income statement for the year ended December 31, 2015. (e)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