Question

Problem 15-2A (Part Level Submission) Asquith Electric sold $446,000, 15%, 10-year bonds on January 1, 2014. The bonds were dated January 1 and paid interest on January 1 and July 1. The bonds were sold at 101. Collapse question part (a) Correct answer. Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2014 Entry field with correct answer Cash Entry field with correct answer 450,460 Entry field with correct answer Entry field with correct answer Bonds Payable Entry field with correct answer Entry field with correct answer 446,000 Entry field with correct answer Premium on bonds payable Entry field with correct answer Entry field with correct answer 4,460 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 1 of 3 used Collapse question part (b) At December 31, 2014, the balance in the Premium on Bonds Payable account is $4,014. Show the balance sheet presentation of accrued interest and the bond liability at December 31, 2014. (For Bonds Payable, Notes Payable and Mortgage payable enter the account name only and do not provide any additional descriptive information e.g. due 2024.) Asquith Electric Balance Sheet December 31, 2014 Interest Payable $ Bonds Payable $ 446,000 : Premium on Bonds Payable $ SHOW LIST OF ACCOUNTS LINK TO TEXT

Answer 1

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