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On June 1, 2020, Whispering Winds Corp. issued $7,840,000, 6% bonds for $7,684,180, which includes accrued interest. Interest is payable semiannually on February 1 and
On June 1, 2020, Whispering Winds Corp. issued $7,840,000, 6% bonds for $7,684,180, which includes accrued interest. Interest is payable semiannually on February 1 and August 1 with the bonds maturing on February 1, 2030. The bonds are callable at 102. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit June 1 On August 1, 2020, Whispering paid interest on the bonds and recorded amortization. Whispering uses straight-line amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Aug. 1 On February 1, 2022, Whispering paid interest and recorded amortization on all of the bonds, and purchased $4,900,000 of the bonds at the call price. Assume that a reversing entry was made on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Feb. 1 (To record interest and amortization on the bonds) Feb. 1 (To record purchase of bonds) Click if you would like to Show Work for this question: Open Show Work
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