The following transactions were completed by Winklevoss Inc , whose fiscal year is the calendar year 20Y1 July 1 Issued $74,000,000 of 20 year, 11 callable bonds dated July 1, 20Y1, at a market (effective) rate of 13 , receiving cash of $63,532,267 Interest is payable semiannually on December 31 and June 30 Dec 31 Paid the semiannual interest on the bonds The bond discount amortization of $261,693 is combined with the semiannual interest payment 20Y2 June 30 Paid the semiannual interest on the bonds The bond discount amortization of $261,693 is combined with the semiannual interest payment Dec 31 Paid the semiannual interest on the bonds The bond discount amortization of $261,693 is combined with the semiannual interest payment 20Y3 June 30 Recorded the redemption of the bonds, which were called at 98 The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded (Record the redemption only ) Required 1 Journalize the entries to record the transactions Round all amounts to the nearest dollar Refer to the Chart of Accounts for exact wording of account titles 2 Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2 3 Determine the carrying amount of the bonds as of December 31, 20Y2 CHART OF ACCOUNTS Winklevoss 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 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 X JOURNAL Score 44 75 ACCOUNTING EQUATION DESCRIPTION POST REF CREDIT DATE Jul 1 Cash DEBIT 63 53226700 ASSETS LIABILITIES EQUITY 1 1 2 74 000 000 00 1 3 200 000,00 Hords Payable Dec 31 Interest Expense Notes Payable Jun 30 Interest Expense Imerest Payable 4 200,000 00 1 Final Questions Shaded cells have feedback, X 5 5,000 00 indicate the amount of the interest expense in (a) 2071 and (b) 2012 Enter amounts as positive number 6 3,000 00 1 20Y1 IS 20Y2 S Points 8 21 14 Points 0 2 Tb Joumalize the entries to record the 2012 transactions refer to the Chart of Accounts for exact wording of account nies Round al amounts to the nearesi dolar 3 Determine the carrying amount of the bords as of December 31, 2012 S Question not attempted Points 0 1 PAGE 11 JOURNAL Score 0 75 ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3 4 5 61 Journal Shaded cells have feedback JOURNAL Score 0 75 ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 Points 0 14 10 Journalize the entries to record the 20Y3 transactions Refer to the Chart of Accounts for exact wording of account titles Round all amounts to the nearest dollar Question not attempted PAGE 12 JOURNAL Score 0 49 ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 Points 0 9

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 30, 2024

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July 1 Issued $74,000,000 of 20-year, 11% callable bonds

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

20Y1

July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30.

Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.

20Y2

June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.

Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.

20Y3

June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. (Record the redemption only.)

Required: 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. 3. Determine the carrying amount of the bonds as of December 31, 20Y2.

CHART OF ACCOUNTS

Winklevoss 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

	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

image text in transcribed

Journal Shaded cells have feedback. X JOURNAL Score: 44/75 ACCOUNTING EQUATION DESCRIPTION POST. REF CREDIT DATE Jul 1 Cash DEBIT 63.53226700 ASSETS LIABILITIES EQUITY 1 1 2 74.000.000.00 1 3 200.000,00 + Hords Payable Dec. 31 Interest Expense Notes Payable Jun 30 Interest Expense Imerest Payable 4 200,000.00 1 Final Questions Shaded cells have feedback, X 5 5,000.00 - indicate the amount of the interest expense in (a) 2071 and (b) 2012. Enter amounts as positive number 6 3,000.00 1 20Y1: IS 20Y2: S Points: 8.21/14 Points: 0/2 Tb. Joumalize the entries to record the 2012 transactions. refer to the Chart of Accounts for exact wording of account nies. Round al amounts to the nearesi dolar 3. Determine the carrying amount of the bords as of December 31, 2012. S Question not attempted. Points: 0/1 PAGE 11 JOURNAL Score: 0/75 ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 61 Journal Shaded cells have feedback. JOURNAL Score: 0/75 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4. 5 6 Points: 0/14 10. Journalize the entries to record the 20Y3 transactions. Refer to the Chart of Accounts for exact wording of account titles. Round all amounts to the nearest dollar. Question not attempted. PAGE 12 JOURNAL Score: 0/49 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 Points: 0/9