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PLEASE HELP! Read the question very carefully. The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year 20 Issued $74,000,000
PLEASE HELP! Read the question very carefully.
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year 20 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13% , receiving cash of $63,532,267. Interest is July payable semiannually on December 31 and June 30. Paid the semiannual interest on the bonds. The bond discount amortization of Dec. 31 $261,693 is combined with the semiannual interest payment. 202 Paid the semiannual interest on the bonds. The bond discount amortization of 30 June S261,693 is combined with the semiannual interest payment. Paid the semiannual interest on the bonds. The bond discount amortization of 31 Dec. $261,693 is combined with the semiannual interest payment. 203 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. (Record the redemption only.) 30 June Required: 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2 3. Determine the carrying amount of the bonds as of December 31, 20Y2. CHART OF ACCOUNTS Winklevoss Inc. General Ledger REVENUE ASSETS 410 Sales 110 Cash 610 Interest Revenue 111 Petty Cash Gain on Redemption of Bonds 611 121 Accounts Receivable EXPENSES 122 Allowance for Doubtful Accounts 352 Stock Dividends 1a. Journalize the entries to record the 20Y1 transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. JOURNAL ACCOUNTING EQUATION POS DESCRIPTION T. DEBIT DATE CREDIT ASSETS EQUITY LIABILITIES REF. 1 1b. Journalize the entries to record the 20Y2 transactions. Refer to the Chart of Accounts for exact wording of account titles. Round all amounts to the nearest dollar. JOURNAL ACCOUNTING EQUATION POS DESCRIPTION T DATE DEBIT CREDIT ASSETS LIABILITIES EQUITY REF. 1 1c. Journalize the entries to record the 20Y3 transactions. Refer to the Chart of Accounts for exact Mording of account titles. Round all amounts to the nearest dollar. JOURNAL ACCOUNTING EQUATION POS DESCRIPTIONT. DEBIT EQUITY DATE CREDIT ASSETS LIABILITIES REF. 1 2 3 4 2. Indicate the amant of theinterest eense in (a 2091 andb) 202. 2011 20 12 3 Dekrmine the carnling amaunt dof the honds os ot Decembar 31,202 Step by Step Solution
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