Problem 10-05A

Carla Vista Co. sold $5,500,000, 10%, 15-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on December 31. The bonds were sold at 99.

Problem 10-05A Carla Vista Co. sold $5,500,000, 10%, 15-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on December 31. The bonds were sold at 99. Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 54450001 Discount on Bonds Payable 55000|| Bonds Payable 5,500,000 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO VIDEO Your answer is partially correct. Try again. Your answer is partially correct. Try again. At December 31, 2022, $8,000 of the bond discount had been amortized. Show the long-term liability balance sheet presentation of the bond liability at December 31, 2022. CARLA VISTA CO. Balance Sheet (Partial) December 31, 2022 Long-term Liabilities 2. Bonds Payable 5,500,000 Tless Discount on Bonds Payable Your answer is partially correct. Try again. At January 1, 2024, when the carrying value of the bonds was $5,390,000, the company redeemed the bonds at 101. Record the redemption of the bonds assuming that interest for the year had already been paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Bonds Payable Y cash Cash Click if you would like to Show Work for this question: Open Show Work