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Walk me through B please thank you CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Problem 10-11A (Part Level Submission) On January 1, 2017, Pronghorn Company
Walk me through B please thank you
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Problem 10-11A (Part Level Submission) On January 1, 2017, Pronghorn Company issued $1,920,000 face value, 7%, 10-year bonds at $2,061,314. This price resulted in a 6% effective-interest rate on the bonds. Pronghorn uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. (a) Your answer is correct. Prepare the journal entries to record the following transactions. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. 1. The issuance of the bonds on January 1, 2017. 2. Accrual of interest and amortization of the premium on December 31, 2017 3. The payment of interest on January 1, 2018 4. Accrual of interest and amortization of the premium on December 31, 2018 Debit No. Credit Account Titles and Explanation Date 2061314 4. Accrual of interest and amortization of the premium on December 31, 2018. No. Date Account Titles and Explanation Debit Credit 1. Jan. 1, 2017 Cash 2061314 Premium on Bonds Payable 141314 Bonds Payable 1920000 2. Dec. 31, 2017 Interest Expense 123679 Premium on Bonds Payable 10721 Interest Payable 134400 3. Jan. 1, 2018 Interest Payable 134400 Cash 134400 4. Dec. 31, 2018 Interest Expense 123036 Premium on Bonds Payable 11364 Interest Payable 134400 Click if you would like to Show Work for this question: Open Show Work Attempt (b) Your answer is partially correct. Try again. Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2018. (Round answers to o decimal places, e.g. 125.) PRONGHORN COMPANY Balance Sheet (Partial) December 31, 2018 V (Long-term Liabilities Bonds Payable 1,920,000 Add Premium on Bonds Payable Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 usecStep by Step Solution
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