You are an accounting wosn working for Sptingfit Corporaton You have coconty bemil assigned to holp one of the acccuntents who is doing an intertal audit of the business You will be assisting wuthat revisw of the tiayobles issuod by SpningFit Gocporation. Your first task is to tevew thet prevaus years journat onitios, shown below Joumal Entries, Year 1 Revew the journal entress on the SpnngFif Carporafion panel, then artsver the questions berow 1. Assuming that no bogds hed been issued vacr to Year 1 , how mary different bonds appear in the joumal entries for this year? 2 2. Which entry shows bonds issued at a contract rote lewor than the maisel rate of interest? Choose the dale. 3 How much interest was paid dunng the year on the bonds in (?) above? 4. What is the corrying amount of the bonds in (2) above of the pnd of the yoar? 5. Which entry shows binds thim sold for more than their facu amoubl? Choase the date 6 How much interest was paid diling the year on the bonds in (6) aboww? 842,60 . 7 Assuming that straghtheline amorization is used for tha bands min (b) whit is the bond life? 8. What is the carryeng value of the bonds in (5) above in the end of the yeur? 9. Considering oniy the Year 1 joumal entries, how much imerest was probably accroed on the noto bayable issued ducing the yoa? You humo boon asked to cortunve you Woik on the Spingfut Carporaticn audit. Below are the joirmat endres, for the cinant yeat. Journal Entries, Year 2 Year 2 Joumal Entries Considering the joumal entries for hoth vears; answer the quostions below 1. What is the yearly payment amount required for the note poyable? (Assume it is an instillment nole 2. What is the interest rate on the note payable? 3. Were the bonds in the entry men Dee 31 of Year 2 redeerned at maturity? 4 You suspect there is an oror in ore of tho bond redemption entries Assuming that the arnounts are conect Which entry is questionable? Both entries are correct. Why? There is no ecror 5. Why do scme bondis sell below face value? You are an accounting wosn working for Sptingfit Corporaton You have coconty bemil assigned to holp one of the acccuntents who is doing an intertal audit of the business You will be assisting wuthat revisw of the tiayobles issuod by SpningFit Gocporation. Your first task is to tevew thet prevaus years journat onitios, shown below Joumal Entries, Year 1 Revew the journal entress on the SpnngFif Carporafion panel, then artsver the questions berow 1. Assuming that no bogds hed been issued vacr to Year 1 , how mary different bonds appear in the joumal entries for this year? 2 2. Which entry shows bonds issued at a contract rote lewor than the maisel rate of interest? Choose the dale. 3 How much interest was paid dunng the year on the bonds in (?) above? 4. What is the corrying amount of the bonds in (2) above of the pnd of the yoar? 5. Which entry shows binds thim sold for more than their facu amoubl? Choase the date 6 How much interest was paid diling the year on the bonds in (6) aboww? 842,60 . 7 Assuming that straghtheline amorization is used for tha bands min (b) whit is the bond life? 8. What is the carryeng value of the bonds in (5) above in the end of the yeur? 9. Considering oniy the Year 1 joumal entries, how much imerest was probably accroed on the noto bayable issued ducing the yoa? You humo boon asked to cortunve you Woik on the Spingfut Carporaticn audit. Below are the joirmat endres, for the cinant yeat. Journal Entries, Year 2 Year 2 Joumal Entries Considering the joumal entries for hoth vears; answer the quostions below 1. What is the yearly payment amount required for the note poyable? (Assume it is an instillment nole 2. What is the interest rate on the note payable? 3. Were the bonds in the entry men Dee 31 of Year 2 redeerned at maturity? 4 You suspect there is an oror in ore of tho bond redemption entries Assuming that the arnounts are conect Which entry is questionable? Both entries are correct. Why? There is no ecror 5. Why do scme bondis sell below face value
