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Please help on questions that have blanks, have been trying for a while now and cant get it right You are an accounting intern working
Please help on questions that have blanks, have been trying for a while now and cant get it right
You are an accounting intern working for Spring Fit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by SpringFit Corporation. Your first task is to review the previous year's journal entries, shown as follows: Journal Entries, Year 1 Journal Credit Date Jan. 1 Debit 1,008,960 Description Cash Premium on Bonds Payable Bonds Payable 58,960 950,000 Jun. 30 Interest Expense Premium on Bonds Payable Cash 18,427 2,948 21,375 Jul. 1 Cash Discount on Bonds Payable Bonds Payable 1,729,164 70,836 1,800,000 Dec. 31 Interest Expense Premium on Bonds Payable 18,427 2,948 Cash 21,375 31 37,403 Interest Expense Discount on Bonds Payable Cash 5,903 31,500 31 74,257 Retained Earnings Interest Expense 74,257 Bonds Payable Review the journal entries on the SpringFit Corporation panel, then answer the following questions. 1. Assuming that no bonds had been issued prior to Year 1, how many different bonds appear in the journal entries for this year? 2. Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date. July 1 3. How much interest was paid during the year on the bonds in question (2)? 4. What is the carrying amount of the bonds in question (2) at the end of the year? $ 5. Which entry shows bonds that sold for more than their face amount? Choose the date. Jan. 1 6. How much interest was paid during the year on the bonds in question (5)? $ 42,750 7. Assuming that straight-line amortization is used for the bonds in question (5), what is the bond life? 10 years 8. What is the carrying value of the bonds in question (5) at the end of the yearStep by Step Solution
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