Question
P10-3B On June 1, 2017, Weller Corp. issued $3,000,000, 9%, 5-year bonds at face value. The bonds were dated June 1, 2017, and pay interest
P10-3BOn June 1, 2017, Weller Corp. issued $3,000,000, 9%, 5-year bonds at face value. The bonds were dated June 1, 2017, and pay interest annually on June 1. Financial statements are prepared annually on December 31.
Instructions
(a)Prepare the journal entry to record the issuance of the bonds.
(b)Prepare the adjusting entry to record the accrual of interest on December 31, 2017.
(c)Show the balance sheet presentation on December 31, 2017.
(d)Prepare the journal entry to record payment of interest on June 1, 2018.
(e)Prepare the adjusting entry to record the accrual of interest on December 31, 2018.
(f)Assume that on January 1, 2019, Weller pays the accrued interest and calls the bonds at 102. Record the payment of interest and redemption of the bonds.
(d) Int. exp. $112,500
(f) Loss $60,000
Can someone please work this out in the attached excel file?
Thank you
Name Section Date Problem 10-3B Weller Corp. Date 1 2 3 4 (a) June 1 5 6 7 8 9 (b) Dec. 31 10 11 12 13 14 June 1 15 16 17 18 19 Dec. 31 (d) Account Titles 2017 2018 Credit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 (e) (f) Jan. 1 Debit 2019 15 16 17 18 19 20 21 22 23 24 20 21 22 23 24 25 26 25 26 27 27 (c) Weller Corp. Balance Sheet (Partial) December 31, 2017 1 2 3 4 1 2 3 4 5 6 7 5 6 7 8 8Step by Step Solution
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