See below. Would love a breakdown of calculations that are clear so I can understand.
Problem 15-01A a-f (Video) On May 1, 2020, Wildhorse Corp. issued $600,000, 10, 5-year bonds at face value. The bonds were dated May 1, 2020, and pay interest annually on May 1. Financial statements are prepared annually on December 31. Prepare the journal entry 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 Credit May 1, 2020 Debit LINK TO TEXT LINK TO TEXT Prepare the adjusting entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675.) Date Account Titles and Explanation Debit Credit Dec 31, 2020 LINK TO TEXT LINK TO TEXT Show the balance sheet presentation on December 31, 2020. (Enter account name only and do not provide descriptive information. Round answers to 0 decimal places, e.g. 5,675.) Wildhorse Corp. Balance Sheet (Partial) $ $ LINK TO TEXT LINK TO TEXT Prepare the journal entry to record payment of interest on May 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to o decimal places, e.g. 5,675.) Date Account Titles and Explanation Debit Credit May 1, 2021 LINK TO TEXT LINK TO TEXT Prepare the adjusting entry to record the accrual of interest on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675.) Date Account Titles and Explanation Debit Credit Dec 31, 2021 LINK TO TEXT LINK TO TEXT Assume that on January 1, 2022, Wildhorse pays the accrual bond interest and calls the bonds. The call price is 105. Record the payment of interest and redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,675.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 (To record payment of interest) Jan. 1, 2022 (To record redemption of the bonds) Click if you would like to Show Work for this question: Open Show Work
