Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz correct the wrong answers Exercise 10-14 Tarawa Limited issued $970,000 of 10-year, 5% bonds on January 1, 2018, when the market interest rate was

image text in transcribedimage text in transcribedplz correct the wrong answers

Exercise 10-14 Tarawa Limited issued $970,000 of 10-year, 5% bonds on January 1, 2018, when the market interest rate was 6%. Tarawa received $897,849 when the bonds were issued. Interest is payable semi-annually on July 1 and January 1. Tarawa has a December 31 year end. Your answer is correct. Record the issue of the bonds on January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 897,8491 Bonds Payable 897,849 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT Your answer is partially correct. Try again. Record the payment of interest on July 1. (Round answers to o decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 Interest Expense 26910 Bonds Payable 2660 cash 24250 Record the accrual of interest on December 31. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense 3,607 Bonds Payable 3,607 Interest Payable 24250 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Prove the amount of cash received when the bonds were sold by determining the bonds' present value (issue price) on January 1, 2018. Prove the carrying amount of the bonds, one year later, by determining the present value of the bonds at that time. (Round answers to o decimal places, e.g. 5,275.) Bonds' present value (issue price) on January 1, 2018 897,849 x Present value of the bonds 970,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Energy Audits

Authors: Prentice-Hall

1st Edition

0881731285, 978-0881731286

More Books

Students also viewed these Accounting questions