*Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. 1. and 2. Journalize the entries to record the transactions. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. How does grading work? The grader is designed to give you the best score possible, even when you skip lines or enter them out of order. It does this by taking every line you have entered and comparing it to every line in the answer. When it finds the line that gives you the best score, it considers that a match. PAGE 10 JOURNAL Score: 100/112 | DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | 1 | | | | | | 2 | | | | | | 3 | | | | | | 4 | | | | | | 5 | | | | | | 6 | | | | | | 7 | | | | | | 8 | | | | | | 9 | | | | | | Solution | DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | 1 | | | | | | 2 | | | | | | 3 | | | | | | 4 | | | | | | 5 | | | | | | 6 | | | | | | 7 | | | | | | 8 | | | | | | 9 | | | | | | Points: 18.75 / 21 Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Explanation none X Final Questions Shaded cells have feedback. 3. Determine the total interest expense for 2016. Points: 0 / 1 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? Yes CHART OF ACCOUNTS | Saverin Inc. | General Ledger | | ASSETS | 110 | Cash | 111 | Petty Cash | 121 | Accounts Receivable | 122 | Allowance for Doubtful Accounts | 126 | Interest Receivable | 127 | Notes Receivable | 131 | Merchandise Inventory | 141 | Office Supplies | 142 | Store Supplies | 151 | Prepaid Insurance | 191 | Land | 192 | Store Equipment | 193 | Accumulated Depreciation-Store Equipment | 194 | Office Equipment | 195 | Accumulated Depreciation-Office Equipment | | LIABILITIES | 210 | Accounts Payable | 221 | Salaries Payable | 231 | Sales Tax Payable | 232 | Interest Payable | 241 | Notes Payable | 251 | Bonds Payable | 252 | Discount on Bonds Payable | 253 | Premium on Bonds Payable | | EQUITY | 311 | Common Stock | 312 | Paid-In Capital in Excess of Par-Common Stock | 315 | Treasury Stock | 321 | Preferred Stock | 322 | Paid-In Capital in Excess of Par-Preferred Stock | 331 | Paid-In Capital from Sale of Treasury Stock | 340 | Retained Earnings | 351 | Cash Dividends | 352 | Stock Dividends | 390 | Income Summary | | | REVENUE | 410 | Sales | 610 | Interest Revenue | 611 | Gain on Redemption of Bonds | | EXPENSES | 510 | Cost of Merchandise Sold | 515 | Credit Card Expense | 516 | Cash Short and Over | 521 | Sales Salaries Expense | 522 | Office Salaries Expense | 531 | Advertising Expense | 532 | Delivery Expense | 533 | Repairs Expense | 534 | Selling Expenses | 535 | Rent Expense | 536 | Insurance Expense | 537 | Office Supplies Expense | 538 | Store Supplies Expense | 541 | Bad Debt Expense | 561 | Depreciation Expense-Store Equipment | 562 | Depreciation Expense-Office Equipment | 590 | Miscellaneous Expense | 710 | Interest Expense | 711 | Loss on Redemption of Bonds | | Journal Shaded cells have feedback. 1. and 2. Journalize the entries to record the transactions. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. | DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | 1 | | | | | | 2 | | | | | | 3 | | | | | | 4 | | | | | | 5 | | | | | | 6 | | | | | | 7 | | | | | | 8 | | | | | | 9 | | | | | | Solution | DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | 1 | | | | | | 2 | | | | | | 3 | | | | | | 4 | | | | | | 5 | | | | | | 6 | | | | | | 7 | | | | | | 8 | | | | | | 9 | | | | | | Points: 18.75 / 21 Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Explanation none X Final Questions Shaded cells have feedback. 3. Determine the total interest expense for 2016. Points: 0 / 1 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? Yes No Points: 1 / 1 5. Compute the price of $15,821,074 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearest dollar.) | | Present value of the face amount | | Present value of the semiannual interest payments | | Price received for the bonds | | Points: 0 / 3 Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Explanation none Select Panels for Tile View The tile view can hold up to three panels at once. Choose which panels you want to see. Two present value tables are provided: Present Value of $1 at Compound Interest Due in n Periods and Present Value of Ordinary Annuity of $1 per Period. Use them as directed in the problem requirements. Present Value of $1 at Compound Interest Due in n Periods | Periods | 4.0% | 4.5% | 5% | 5.5% | 6% | 6.5% | 7% | 1 | 0.96154 | 0.95694 | 0.95238 | 0.94787 | 0.94340 | 0.93897 | 0.93458 | 2 | 0.92456 | 0.91573 | 0.90703 | 0.89845 | 0.89000 | 0.88166 | 0.87344 | 3 | 0.88900 | 0.87630 | 0.86384 | 0.85161 | 0.83962 | 0.82785 | 0.81630 | 4 | 0.85480 | 0.83856 | 0.82270 | 0.80722 | 0.79209 | 0.77732 | 0.76290 | 5 | 0.82193 | 0.80245 | 0.78353 | 0.76513 | 0.74726 | 0.72988 | 0.71299 | 6 | 0.79031 | 0.76790 | 0.74622 | 0.72525 | 0.70496 | 0.68533 | 0.66634 | 7 | 0.75992 | 0.73483 | 0.71068 | 0.68744 | 0.66506 | 0.64351 | 0.62275 | 8 | 0.73069 | 0.70319 | 0.67684 | 0.65160 | 0.62741 | 0.60423 | 0.58201 | 9 | 0.70259 | 0.67290 | 0.64461 | 0.61763 | 0.59190 | 0.56735 | 0.54393 | 10 | 0.67556 | 0.64393 | 0.61391 | 0.58543 | 0.55839 | 0.53273 | 0.50835 | 11 | 0.64958 | 0.61620 | 0.58468 | 0.55491 | 0.52679 | 0.50021 | 0.47509 | 12 | 0.62460 | 0.58966 | 0.55684 | 0.52598 | 0.49697 | 0.46968 | 0.44401 | 13 | 0.60057 | 0.56427 | 0.53032 | 0.49856 | 0.46884 | 0.44102 | 0.41496 | 14 | 0.57748 | 0.53997 | 0.50507 | 0.47257 | 0.44230 | 0.41410 | 0.38782 | 15 | 0.55526 | 0.51672 | 0.48102 | 0.44793 | 0.41727 | 0.38883 | 0.36245 | 16 | 0.53391 | 0.49447 | 0.45811 | 0.42458 | 0.39365 | 0.36510 | 0.33873 | 17 | 0.51337 | 0.47318 | 0.43630 | 0.40245 | 0.37136 | 0.34281 | 0.31657 | 18 | 0.49363 | 0.45280 | 0.41552 | 0.38147 | 0.35034 | 0.32189 | 0.29586 | 19 | 0.47464 | 0.43330 | 0.39573 | 0.36158 | 0.33051 | 0.30224 | 0.27651 | 20 | 0.45639 | 0.41464 | 0.37689 | 0.34273 | 0.31180 | 0.28380 | 0.25842 | 21 | 0.43883 | 0.39679 | 0.35894 | 0.32486 | 0.29416 | 0.26648 | 0.24151 | 22 | 0.42196 | 0.37970 | 0.34185 | 0.30793 | 0.27751 | 0.25021 | 0.22571 | 23 | 0.40573 | 0.36335 | 0.32557 | 0.29187 | 0.26180 | 0.23494 | 0.21095 | 24 | 0.39012 | 0.34770 | 0.31007 | 0.27666 | 0.24698 | 0.22060 | 0.19715 | 25 | 0.37512 | 0.33273 | 0.29530 | 0.26223 | 0.23300 | 0.20714 | 0.18425 | 26 | 0.36069 | 0.31840 | 0.28124 | 0.24856 | 0.21981 | 0.19450 | 0.17220 | 27 | 0.34682 | 0.30469 | 0.26785 | 0.23560 | 0.20737 | 0.18263 | 0.16093 | 28 | 0.33348 | 0.29157 | 0.25509 | 0.22332 | 0.19563 | 0.17148 | 0.15040 | 29 | 0.32065 | 0.27902 | 0.24295 | 0.21168 | 0.18456 | 0.16101 | 0.14056 | 30 | 0.30832 | 0.26700 | 0.23138 | 0.20064 | 0.17411 | 0.15119 | 0.13137 | 31 | 0.29646 | 0.25550 | 0.22036 | 0.19018 | 0.16425 | 0.14196 | 0.12277 | 32 | 0.28506 | 0.24450 | 0.20987 | 0.18027 | 0.15496 | 0.13329 | 0.11474 | 33 | 0.27409 | 0.23397 | 0.19987 | 0.17087 | 0.14619 | 0.12516 | 0.10723 | 34 | 0.26355 | 0.22390 | 0.19035 | 0.16196 | 0.13791 | 0.11752 | 0.10022 | 35 | 0.25342 | 0.21425 | 0.18129 | 0.15352 | 0.13011 | 0.11035 | 0.09366 | 40 | 0.20829 | 0.17193 | 0.14205 | 0.11746 | 0.09722 | 0.08054 | 0.06678 | 45 | 0.17120 | 0.13796 | 0.11130 | 0.08988 | 0.07265 | 0.05879 | 0.04761 | 50 | 0.14071 | 0.11071 | 0.08720 | 0.06877 | 0.05429 | 0.04291 | 0.03395 | Present Value of Ordinary Annuity of $1 per Period | Periods | 4.0% | 4.5% | 5% | 5.5% | 6% | 6.5% | 7% | 1 | 0.96154 | 0.95694 | 0.95238 | 0.94787 | 0.94340 | 0.93897 | 0.93458 | 2 | 1.88609 | 1.87267 | 1.85941 | 1.84632 | 1.83339 | 1.82063 | 1.80802 | 3 | 2.77509 | 2.74896 | 2.72325 | 2.69793 | 2.67301 | 2.64848 | 2.62432 | 4 | 3.62990 | 3.58753 | 3.54595 | 3.50515 | 3.46511 | 3.42580 | 3.38721 | 5 | 4.45182 | 4.38998 | 4.32948 | 4.27028 | 4.21236 | 4.15568 | 4.10020 | 6 | 5.24214 | 5.15787 | 5.07569 | 4.99553 | 4.91732 | 4.84101 | 4.76654 | 7 | 6.00205 | 5.89270 | 5.78637 | 5.68297 | 5.58238 | 5.48452 | 5.38929 | 8 | 6.73274 | 6.59589 | 6.46321 | 6.33457 | 6.20979 | 6.08875 | 5.97130 | 9 | 7.43533 | 7.26879 | 7.10782 | 6.95220 | 6.80169 | 6.65610 | 6.51523 | 10 | 8.11090 | 7.91272 | 7.72173 | 7.53763 | 7.36009 | 7.18883 | 7.02358 | 11 | 8.76048 | 8.52892 | 8.30641 | 8.09254 | 7.88687 | 7.68904 | 7.49867 | 12 | 9.38507 | 9.11858 | 8.86325 | 8.61852 | 8.38384 | 8.15873 | 7.94269 | 13 | 9.98565 | 9.68285 | 9.39357 | 9.11708 | 8.85268 | 8.59974 | 8.35765 | 14 | 10.56312 | 10.22283 | 9.89864 | 9.58965 | 9.29498 | 9.01384 | 8.74547 | 15 | 11.11839 | 10.73955 | 10.37966 | 10.03758 | 9.71225 | 9.40267 | 9.10791 | 16 | 11.65230 | 11.23402 | 10.83777 | 10.46216 | 10.10590 | 9.76776 | 9.44665 | 17 | 12.16567 | 11.70719 | 11.27407 | 10.86461 | 10.47726 | 10.11058 | 9.76322 | 18 | 12.65930 | 12.15999 | 11.68959 | 11.24607 | 10.82760 | 10.43247 | 10.05909 | 19 | 13.13394 | 12.59329 | 12.08532 | 11.60765 | 11.15812 | 10.73471 | 10.33560 | 20 | 13.59033 | 13.00794 | 12.46221 | 11.95038 | 11.46992 | 11.01851 | 10.59401 | 21 | 14.02916 | 13.40472 | 12.82115 | 12.27524 | 11.76408 | 11.28498 | 10.83553 | 22 | 14.45112 | 13.78442 | 13.16300 | 12.58317 | 12.04158 | 11.53520 | 11.06124 | 23 | 14.85684 | 14.14777 | 13.48857 | 12.87504 | 12.30338 | 11.77014 | 11.27219 | 24 | 15.24696 | 14.49548 | 13.79864 | 13.15170 | 12.55036 | 11.99074 | 11.46933 | 25 | 15.62208 | 14.82821 | 14.09394 | 13.41393 | 12.78336 | 12.19788 | 11.65358 | 26 | 15.98277 | 15.14661 | 14.37519 | 13.66250 | 13.00317 | 12.39237 | 11.82578 | 27 | 16.32959 | 15.45130 | 14.64303 | 13.89810 | 13.21053 | 12.57500 | 11.98671 | 28 | 16.66306 | 15.74287 | 14.89813 | 14.12142 | 13.40616 | 12.74648 | 12.13711 | 29 | 16.98371 | 16.02189 | 15.14107 | 14.33310 | 13.59072 | 12.90749 | 12.27767 | 30 | 17.29203 | 16.28889 | 15.37245 | 14.53375 | 13.76483 | 13.05868 | 12.40904 | 31 | 17.58849 | 16.54439 | 15.59281 | 14.72393 | 13.92909 | 13.20063 | 12.53181 | 32 | 17.87355 | 16.78889 | 15.80268 | 14.90420 | 14.08404 | 13.33393 | 12.64656 | 33 | 18.14765 | 17.02286 | 16.00255 | 15.07507 | 14.23023 | 13.45909 | 12.75379 | 34 | 18.41120 | 17.24676 | 16.19290 | 15.23703 | 14.36814 | 13.57661 | 12.85401 | 35 | 18.66461 | 17.46101 | 16.37419 | 15.39055 | 14.49825 | 13.68696 | 12.94767 | 40 | 19.79277 | 18.40158 | 17.15909 | 16.04612 | 15.04630 | 14.14553 | 13.33171 | 45 | 20.72004 | 19.15635 | 17.77407 | 16.54773 | 15.45583 | 14.48023 | 13.60552 | 50 | 21.48218 | 19.76201 | 18.25593 | 16.93152 | 15.76186 | 14.72452 | 13.80075 | |