On May 1, 2021, Wildhorse Corp. issued $945,000 of 5 year, 7% bonds at 95. The bonds pay interest annually on May 1. Wildhorse's year end is April 30. Record the issue of the bonds on May 1, 2021. (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 for the amounts.) Date Account Titles and Explanation Debit Credit May 1 Cash Bonds Payable Calculate the effective rate of the bonds using Excel or a financial calculator. (Round answer to 4 decimal places, eg 1.5751) Effectiverate % Prepare an effective interest amortization table for this bond (Round answers to decimal places, es 5,276) Wildhorse CORP. Bond Discount Amortization Table Effective Interest Method-Annual Interest Payments Interest Expense Discount Amortization Date Interest Payment Bond Amortize May 1 2021 $ $ $ $ May 1 2022 May 1 2023 May Record the accrual of interest at April 30, 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 for the amounts. Round answers to decimal places, eg. 5,276) Date Account Titles and Explanation Debit Credit Apr. 30 To accrue interest expense.) Record the interest payment on May 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 for the amounts) Date Account Titles and Explanation Debit Credit May 1 (To record interest payment.) Assuming instead that Wildhorse has a December 31, 2021, year end, prepare the adjusting entry relating to these bonds and the subsequent interest payment on May 1, 2022. (Credit account dities 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 Ofor the amounts. Round answers to o decimal places, eg,5,276) Date Account Titles and Explanation Debit Credit Dec. 31 (To accrue interest expense.) May 1 Assume that on May 1, 2022, after payment of the interest, Wildhorse redeems all of the bonds at 101. Record the redemption of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry's required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg,5,276.) Date Account Titles and Explanation Debit Credit May 1 (To record redemption of bonds.) On May 1, 2021, Wildhorse Corp. issued $945,000 of 5 year, 7% bonds at 95. The bonds pay interest annually on May 1. Wildhorse's year end is April 30. Record the issue of the bonds on May 1, 2021. (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 for the amounts.) Date Account Titles and Explanation Debit Credit May 1 Cash Bonds Payable Calculate the effective rate of the bonds using Excel or a financial calculator. (Round answer to 4 decimal places, eg 1.5751) Effectiverate % Prepare an effective interest amortization table for this bond (Round answers to decimal places, es 5,276) Wildhorse CORP. Bond Discount Amortization Table Effective Interest Method-Annual Interest Payments Interest Expense Discount Amortization Date Interest Payment Bond Amortize May 1 2021 $ $ $ $ May 1 2022 May 1 2023 May Record the accrual of interest at April 30, 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 for the amounts. Round answers to decimal places, eg. 5,276) Date Account Titles and Explanation Debit Credit Apr. 30 To accrue interest expense.) Record the interest payment on May 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 for the amounts) Date Account Titles and Explanation Debit Credit May 1 (To record interest payment.) Assuming instead that Wildhorse has a December 31, 2021, year end, prepare the adjusting entry relating to these bonds and the subsequent interest payment on May 1, 2022. (Credit account dities 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 Ofor the amounts. Round answers to o decimal places, eg,5,276) Date Account Titles and Explanation Debit Credit Dec. 31 (To accrue interest expense.) May 1 Assume that on May 1, 2022, after payment of the interest, Wildhorse redeems all of the bonds at 101. Record the redemption of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry's required, select "No Entry" for the account titles and enter for the amounts. Round answers to decimal places, eg,5,276.) Date Account Titles and Explanation Debit Credit May 1 (To record redemption of bonds.)
