On April 1, 2020, Wildhorse Company sold 15,300 of its 12%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Wildhorse took advantage of favorable prices of its stock to extinguish 6,900 of of the bonds by issuing 227,700 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $33 per share on March 1, 2021. Prepare the journal entries needed on the books of Wildhorse Company to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to o decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) April 1, 2020: issuance of the bonds. (b) October 1, 2020: payment of semiannual interest. (C) December 31, 2020: accrual of interest expense. (d) March 1, 2021: extinguishment of 6,900 bonds. (No reversing entries made.) No. Date Account Titles and Explanation Debit Credit (a) 4/1/201Cash 1484100 T Discount on Bonds Paya 13815900 T Bonds Payable 15300000 (b) 10/1/20 interest Expense 918000 I Cash 918000 (C) 12/31/2017 459000 T Discount on Bonds Paya 459000 (d) 3/1/21 130 Bonds Payable 6900000 TTCommon Stock T Paid-in Capital in Exces 2277000 (To record interest and discount on bonds retired) Interest Expense 345000 Cash 345000 (u) March 1, 2021: extinguishment or 0,900 bonus. (NO reversing ences maue.) Debit Credit No. Date Account Titles and Explanation (a) 4/1/207Cash 1484100 T Discount on Bonds Paya 13815900 T Bonds Payable 15300000 Problem 14-07. List Of Accounts - G... - O edugen.wileyplus.com/edugen/shared/assign... X. O (b) 10/1/20 Interest Expense 918000 Cash 918000 List Of Accounts CLOSE Problem 14-07 (0) 12/31/2017 459000 Discount on Bonds Paya 459000 (d) 3/1/21 Bonds Payable 6900000 Common Stock Accumulated Depreciation-Equipment Accumulated Depreciation-Machinery Accumulated Depreciation-plant and Equipment Allowance for Doubtful Accounts Bad Debt Expense Bond Issue Expense Bonds Payable Buildings Cash Common Stock Cost of Goods Sold Debt Investments Depreciation Expense Discount on Bonds Payable Discount on Notes Payable Discount on Notes Receivable Equipment Equity Investments Gain on Disposal of Machinery Gain on Disposal of Land Gain on Disposal of Plant Assets Gain on Redemption of Bonds Gain on Restructuring of Debt Gain on Sale of Machinery Interest Expense Paid-in Capital in Exces 2277000 (To record interest and discount on bonds retired) 3/1/21 Interest Expense 345000 Cash 345000 (To record extinguishment of the bonds)
