Question
In: Accounting
Wainwright Electric sold $3,000,000, 10%, 10-year bonds on March 1, 2015. The bonds were dated January...
Wainwright Electric sold $3,000,000, 10%, 10-year bonds on March 1, 2015. The bonds were dated January 1 and pay interest September 1 and March 1. Wainwright Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 104. The company’s year ends on December 31.
Instructions
(a) Prepare the journal entry to record the issuance of the bonds on March 1, 2015.
(b) Prepare a bond premium amortization schedule for the first 4 interest periods.
(c) Prepare the journal entries for interest and the amortization of the premium in 2015 and 2016.
(d) Show the balance sheet presentation of the bond liability at December 31, 2016.
Solutions
ekkarill92 answered 3 years agoRelated Solutions
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January 1. The company uses straight-line amortization on bond
premiums and discounts. Financial statements are prepared
annually.
Prepare the journal entries to record the issuance of the bonds
assuming they sold at: (1) 101 and (2) 95. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually.)
Prepare amortization table for issuance of the...
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January 1. The company uses straight-line amortization on bond
premiums and discounts. Financial statements are prepared
annually.
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assuming they sold at: (1) 101 and (2) 95. (Credit
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Instructions
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