You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by Spring Corporation. Your first task is to review the previous year's journal entries shown as follows Journal Entries, Year 1 15 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT LARUTES EQUITY 1 Jan 1 Cash 1,008, 960.00 1 2 Premium on Bonds Payable + Bonds Payable 58,960.00 950,000.00 Jun 50 interest Expense Premium on Bonds Payable 18,427.00 2,948.00 21,375.00 1,921,280.00 78,720.00 Jul 1 Cash Discount on Bonds Payable Bonds Payable Dec 31 terest Expense Permanente 2.000.000.00 18,42700 Check My Work 3 more Check My Work uses remaining nment Score: 0.0% All work saved M4 Critical Thinking Problem Calculator sense 10 18,427.00 11 2,948.00 12 Dec 31 Interest Expense Premium on Bonds Payable Cash 31 Interest Expense Discount on Bonds Payable 21,375.00 13 41,560,00 14 6,560.00 Cash 35,000.00 ! 78,414.00 31 Income Summary Interest Expense 78,41400 Bonds Payable Review the jouma entries on the Spring Corporation panel then answer the following questions 1. Assuming that no bonds had been issued prior to Year 1. how many different bonds appear in the journal entries for this year? 2. Which entry shows bonds issued at a contractate lower than the market rate of interest? Choose the date 3. How much interest was paid during the year on the bonds in question (2175 4. What is the car amount of the bonds in question (2) at the end of the year? S 5. Which entry shows bonds that sold for more than their facem? Choose the date Check My Work 3 more Check My Work uses remaining Interest Expense 78,414.00 Bonds Payable 4 Review the journal entries on the SpringFt Corporation panel, then answer the following questions 1. Assuming that no bonds had been issued prior to Year 1, how many different bonds appear in the journal entries for this year? 2. Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date 3. How much interest was paid during the year on the bonds in question (2)? S 4. What is the carrying amount of the bonds in question (2) at the end of the year? S 5. Which entry shows bonds that sold for more than their face amount? Choose the date. 6. How much interest was paid during the year on the bonds in question (5)? 7. Assuming that straight-line amortization is used for the bonds in (5). what is the bond life? 8 What is the carrying value of the bonds in question (5) at the end of the year? S 2 3 1 5 Year 2 Journal Entries Check My Work 3 more heck My ork uses remaining gnment Score: 0.0% All work saved. Type here to search HED a 31 Inome Samen Interest Expense 78,414.00 Bonds Payable Review the journal entries on the Springer Corporation panel, then answer the following questions 1. Assuming that no bonds had been issued prior to Year 1, how many different bonds appear in the journal entries for this year? 2 Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date 3. How much interest was paid during the year on the bonds in question (21 $ 4. What is the carrying amount of the bonds in question (2) at the end of the year? Sept 30 5. Which entry shows bonds that sold for more than their face amount? Choose the date 6. How much interest was paid during the year on the bonds in question (5)? 7. Assuming that straight-in amortization is used for the bonds in (5), what is the bond life? Dec 31 & What is the carrying value of the bonds in question (5) at the end of the year? s June 30 Jan 1 July 1 Oct 1 Check My Work 3 more Check My Work uses remaining gnment Score: 0.0% All work saved. Type here to search O. BI a 15 31 Income Summary 78,414.00 17 Interest Expense 78,414.00 Bonds Payable Review the journal entries on the Spring Ft Corporation panel, then answer the following questions 1. Assuming that no bonds had been issued prior to Year 1 how many different bonds appear in the journal entries for this year? 2. Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date. 3. How much interest was paid during the year on the bonds in question (2) 4. What is the carrying amount of the bonds in question (2) at the end of the years 5. Which entry shows bonds that sold for more than their face amount? Choose the date. 6. How much interest was paid during the year on the bonds in question (5)? 7. Assuming that straight-line amortization is used for the bonds in (5), what is the bond Oct 1 8. What is the carying value of the bonds in question (5) at the end of the years Jul 1 Jan 1 Dec 31 Sep 30 Check My Work more Check My Work uses remaining Assignment Score: 0.0% All work saved a Type here to search o Bonds Payable Review the journal entries on the SpringFit Corporation panel then answer the following questions 1. Assuming that no bonds had been issued prior to Year 1, how many different bonds appear in the journal entries for this year? 2. Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date. 3. How much interest was paid during the year on the bonds in question (29 $ 4. What is the carrying amount of the bonds in question (2) at the end of the years 5. Which entry shows bonds that sold for more than their face amount? Choose the date. 6. How much interest was paid during the year on the bonds in question (5)? 7. Assuming that straight-line amortization is used for the bonds in (5), what is $18,427 8. What is the carrying value of the bonds in question (5) at the end of the yea $21,375 $22.500 $36.854 $42.750 $77.750 None of these amounts Check My Work 3 more Check My Work uses remaining Assignment Score: 0.0% All work saved. Type here to search o PRE a Apps P Mallory Grades and... Canvas ESPN Typing Lessons | Be... Michigan State Uni... Vet Tix GVSU Admissions M4 Critical Thinking Problem Calculator Bonds Payable Review the journal entries on the Spring Corporation panel then answer the following questions 1. Assuming that no bonds had been issued prior to Year 1 how many different bonds appear in the journal entries for this year? 2. Which entry shows bonds issued at a contract rate lower than the market rate of interest? Choose the date. 3. How much interest was paid during the year on the bonds in question (2) S 4. What is the carrying amount of the bonds in question (2) at the end of the years 5. Which entry shows bonds that sold for more than their face amount? Choose the date. 6. How much interest was paid during the year on the bonds in question (57? 7. Assuming that straight-line amortization is used for the bonds in (5). what is the bond life? 8. What is the carrying value of the bonds in question (5) at the end of the years 15 years 20 years 5 years Cannot be determined None of these 10 years Year 2 Journal Entries Check My Work more Check My Work uses remaning Assignment Score: 0.0% All work saved Type here to search o 3 a M4 Critical Thinking Problem Calculator Journal Entries, Year 2 MOE33 JOURNAL ACCOUNTING EQUATION POST. REF: DET CREDIT ASSETS LABUTIES EQUITY 18,42700 DATE DESCRIPTION Jun 30 interest Expense Premium on Bonds Payable C 2,948.00 21,375.00 41.560.00 30 interest Expense Discount on Bonds Payable 6,560,00 35,000.00 2,000,000.00 50 Bonds Payable Gain on Redemption of Bones Discount on Bons Payable 41,000.00 65.600.00 1.893,400.00 18,42700 Dec si eres pense Premium on Bonds Payable 2,948.00 Ched My Work 3 more Check My Work uses remaining Critical Thinking Problem Calculator 14 78,414.00 31 Income Summary Interest Expense 15 78,414.00 16 31 Bonds Payable Premium on Bonds Payable 17 475,000.00 23,584.00 20,600.00 11 Loss on Redemption of Bonds 15 Cash 519,184.00 1 Final Questions Considering the journal entries for both years, answer the following questions 1. Were the bonds in the entry on Dec 31 of Year 2 redeemed at maturity? 2. You suspect there is an error in one of the bond redemption entries. Assuming that the amounts are correct, which entry is questionable? Why? 3. Why do some bonds sel below face value? 4 Which of the following items are amortized? Check all that apply Bords Check My Work 3 more Check My Work uses remaining Critical Thinking Problem Calculator Considering the journal entries for both years, answer the following questions. 1. Were the bonds in the entry on Dec. 31 of Year 2 redeemed at maturity? 2 You suspect there is an error in one of the bond redemption entries. Assur Cannot be determined correct, which entry is questionable? Why? 3. Why do some bonds sell below face value? No Yes 4. Which of the following items are amortized? Check all that apply Bonds Discounts It depends on the face value of the bond Redemption amount Contract rate of interest Interest expenses Future cash receipts Premium Check My Work 3 more Check My Work uses remaining sex VSU Admissions Houses is Howel M4 Critical Thinking Problem Calculator Considering the journal entries for both years, answer the following questions 1. Were the bonds in the entry on Dec 31 of Year 2 redeemed at maturity? 2. You susped there is an error in one of the bond redemption entries Assuring that the amounts are correct, which entry is questionable? Why? 3. Why do some bonds sel below face value? Both entries have an error Jun 30, Year 2 4. Which of the following items are amortized? Check all that apply Both entries are correct O Bonds Dec 31 Year 2 Discounts It depends on the face value of the bond Redemption amount Contract rate of interest Interest expenses Future cash receipts Premium Check My Work 3 more Check My Work uses remaining Critical Thinking Problem Calculator Considering the journal entries for both years, answer the following questions. 1. Were the bonds in the entry on Dec. 31 of Year 2 redeemed at maturity? 2. You suspect there is an error in one of the bond redemption entries. Assuming that the amounts are correct, which entry is questionable? Why? 3 There is no error aply There should not be a gain on a discounted bond. Not all the bonds have been redeemed. There should not be a loss on a bond with a premium. None of these answers is correct Redemption amount Contract rate of interest Interest expenses Future cash receipts Premium Calculator Considering the journal entries for both years, answer the following questions 1. Were the bonds in the entry on Dec. 31 of Year 2 redeemed at maturity? 2. You suspect there is an error in one of the bond redemption entries. Assuming that the amounts are correct, which entry is questionable? Why? 3. Why do some bonds sel below face value? 4. Which of the following terms are amortized? The face value of some bonds is below market value Some bonds are sold at a discount or premium Bonds None of these answers is correct Discounts Some bonds have longer maturity dates It depends on the face value of the Some bonds cannot be amortized effectively - Redemption amount Contract rate of interest Interest expenses Future cash receipts Premiums
