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The following information is taken from Flounder Corp.s balance sheet aDecmbe 31,2016 Current hablities Interest payable Long term liabilities Bonds payable 17, due Janwary 1,
The following information is taken from Flounder Corp.s balance sheet aDecmbe 31,2016 Current hablities Interest payable Long term liabilities Bonds payable 17, due Janwary 1, 20271 $3,240,000 Less: Discount on bonds payable 32,400 3,207,600 Interest is payable annuaily on lahuary 1. The bonds are calable on any anual interest date. Flountder uses straight Ine amartiration for any bond premium ar dt.From nterest December 31, 2016, the bonds will be outstanding for an addtional 10 years (120 manths). a) Journmalize the payment of bond interest on January 1, 2017 b) Prepare the entry to amortize bond discount and to accrue the interest on Decembet 31, 201. c) Assume ? January 1, 2018, a ter prying interest, that Founder Corp ak terek having a tace value " tS40,000 th" erice 102 Record the rednoten of the bond (d) Prepare the adjusting entry at December 31, 2018, to amortize bond dscount and to accrue interest on the remaining bonds. (Credit account tites are automaticaly indented when onmount is ontered. Do not inderet maaualy outstanding for an additionai No Date Account Ttles and Explanation (a) Jan. 1 2012 b) Dec 31 2017 R.Orti Reserved. A Divison o. )ahnwins seules ia i L?000:22aahtomter sees.ins. Ai The following information is taken from Flounder Corp.s balance sheet aDecmbe 31,2016 Current hablities Interest payable Long term liabilities Bonds payable 17, due Janwary 1, 20271 $3,240,000 Less: Discount on bonds payable 32,400 3,207,600 Interest is payable annuaily on lahuary 1. The bonds are calable on any anual interest date. Flountder uses straight Ine amartiration for any bond premium ar dt.From nterest December 31, 2016, the bonds will be outstanding for an addtional 10 years (120 manths). a) Journmalize the payment of bond interest on January 1, 2017 b) Prepare the entry to amortize bond discount and to accrue the interest on Decembet 31, 201. c) Assume ? January 1, 2018, a ter prying interest, that Founder Corp ak terek having a tace value " tS40,000 th" erice 102 Record the rednoten of the bond (d) Prepare the adjusting entry at December 31, 2018, to amortize bond dscount and to accrue interest on the remaining bonds. (Credit account tites are automaticaly indented when onmount is ontered. Do not inderet maaualy outstanding for an additionai No Date Account Ttles and Explanation (a) Jan. 1 2012 b) Dec 31 2017 R.Orti Reserved. A Divison o. )ahnwins seules ia i L?000:22aahtomter sees.ins. Ai
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