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Please help solve! I am taking Accounting in Health Care HCS/380. P10-8B Prepare journal entries to record issuance of bonds, interest, straight-line amortization, and balance
Please help solve! I am taking Accounting in Health Care HCS/380.
P10-8B Prepare journal entries to record issuance of bonds, interest, straight-line amortization, and balance sheet p and balance sheet presentation Holmes Corporation sold $2,200,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, on January 1. Holmes Corporation uses the straight-line method to amortize bond premiums or discounts. Instructions (a) Prepare all necessary journal entries to record the issuance of the bonds and bond interest expense for 201 assuming the bond sold at 102. (b) Prepare journal entries as in part (a) assuming g the bonds sold at 98. (c ) Show the balance sheet presentation for the bond issue at December 31, 2014, using (1) the 102 selling pric then (2) the 98 selling price NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . (a) Jan 1 Account Value Account Account Dec 31 Account Account Value Value Value Value Account (b) Jan 1 Account Account Value Value Value Account Dec 31 Account Value Value Account Account (c ) Value Value Premium Current Liabilities Interest Payable Long-term Liabilities Bonds payable, due 2019 Value Value Add: Premium on bonds payable Value Value Discount Current Liabilities Interest Payable Long-term Liabilities Bonds payable, due 2019 Less: Discount on bonds payable Value Value Value Value ortization, and balance sheet presentation s were dated January 1, 2014, and pay interest emiums or discounts. bond interest expense for 2014, 4, using (1) the 102 selling price, and a in cells with a "?"Step by Step Solution
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