Romine Company issued $413,900of10%,10-year bonds on January 1, 2014, at face value. Interest is payable annually on January 1.

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Your answer is partially correct.Try again.Prepare the journal entries to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2014 Cash

Bonds Payable

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Your answer is incorrect.Try again.Prepare the journal entries to record the accrual of interest on December 31, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2014

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Your answer is partially correct.Try again.Prepare the journal entries to record the payment of interest on January 1, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2015 Cash

Bonds Payable

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Your answer is incorrect.Try again.Prepare the journal entries to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2024

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Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2013, Grace was loaned $142,000 at an annual interest rate of 7%. The loan is repayable over 5 years in annual installments of $34,632, principal and interest, due each June 30. The first payment is due June 30, 2014. Grace uses the effectiveinterest method for amortizing debt. Her ski hill company's year-end will be June 30. Don't show me this message again for the assignment Your answer is correct. Prepare an amortization schedule for the 5 years, 2013-2018. (Round answers to 0 decimal places, e.g. 125.) Period Cash Payment Interest Expense $ Principal Reduction $ Balance $ $ July 1, 2013 142,000 June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 34,632 9940 24,692 117,308 34,632 8212 26,420 90,888 34,632 6362 28,270 62,618 34,632 4383 30,249 32,369 34,632 2266 32,366 3 * Amount may be off due to rounding. Don't show me this message again for the assignment Show List of Accounts Show Solution Show Answer Link to Text * Your answer is correct. Prepare all journal entries for Grace Herron for the first 2 fiscal years ended June 30, 2014, and June 30, 2015. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date July 1/13 Account Titles and Explanation Cash Debit 142,000 Notes Payable June 30/14 Notes Payable Interest Expense 142,000 24,692 9940 Cash June 30/15 Notes Payable Interest Expense 34,632 26,420 8212 Cash Don't show me this message again for the assignment Show List of Accounts Credit 34,632 Show Answer Link to Text Your answer is partially correct. Try again. Show the balance sheet presentation of the note payable as of June 30, 2015. (Hint: Be sure to distinguish between the current and long-term portions of the note.) (Round answers to 0 decimal places, e.g. 125.) GRACE HERRON Balance Sheet (Partial) June 30, 2015 res_EAT_135049 Current Liabilities $ Notes Payable res_EAT_135049 Long-termLiabilities $ Notes Payable Wempe Co. sold $3,059,000, 8%, 10-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. Don't show me this message again for the assignment Your answer is partially correct. Try again. Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 103 and (2) 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Don't show me this message again for the assignment Show List of Accounts Link to Text Your answer is partially correct. Try again. Prepare amortization tables for issuance of the bonds sold at 103 for the first three interest payments. Annual Interest Periods Interest Expense to Be Recorded Interest to Be Paid $ Premium Amortization $ 2 3 Bond Carrying Value $ $ Issue date 1 Unamortized Premium $ 91,700 3,150,770 244,720 235,543 9177 82,523 3,141,593 244,720 235,543 9177 73,346 3,132,416 244,720 235,543 9177 64,169 3,123,239 Prepare amortization tables for issuance of the bonds sold at 95 for the first three interest payments. Annual Interest Periods Interest Expense to Be Recorded Interest to Be Paid $ Premium Amortization $ 2 3 Bond Carrying Value $ $ Issue date 1 Unamortized Premium $ 152,950 2,906,050 244,720 260,015 15,295 137,655 2,921,345 244,720 260,015 15,295 122,360 2,936,640 244,720 260,015 15,295 106,435 2,952,565 Don't show me this message again for the assignment Show List of Accounts Link to Text Your answer is correct. Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at: (1) 103 and (2) 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Don't show me this message again for the assignment Show List of Accounts Show Answer Your answer is partially correct. Try again. Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 103 at December 31, 2014. WEMPE Co. Balance Sheet (Partial) December 31, 2014 res_EAT_135049 Long-termLiabilities $ Bonds Payable 3,059,000 res_EAT_135049 $ Add : 82,523 3,141,523 Premiumon Bond Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 95 at December 31, 2014. WEMPE Co. Balance Sheet (Partial) December 31, 2014 res_EAT_135049 Long-termLiabilities $ Bonds Payable 3,059,000 res_EAT_135049 : $ Less 137,655 Discount on Bond Don't show me this message again for the assignment 2,921,345