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BE14-1 Your answer is correct. Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semiannually . At the time of issue, the annual market rate for such bonds is 10%. Compute the issue price of the bonds. (Use the present value tables in the text. Round your answer to zero decimal places, e.g. 2,510.) $ 469275.65 BE14-2 Your answer is correct. The Colson Company issued $300,000 of 10% bonds on January 1, 2013. The bonds are due January 1, 2018, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Colson's journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Description/Account (a) Cash Bonds Payable (b) Interest Expense Cash (c) Interest Expense Interest Payable BE14-3 Your answer is correct. The Colson Company issued $300,000 of 10% bonds on January 1, 2013. The bonds are due January 1, 2018, with interest payable each July 1 and January 1. The bonds are issued at 98. Prepare the journal entries for (a) January 1, (b) the July 1, and (c) December 31. Assume The Colson Company records straight-line amortization annually on December 31. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Debit Credit (a) Cash 294000 Discount on Bonds Payable 6000 Bonds Payable 300000 (b) Interest Expense 15600 Cash 15000 Discount on Bonds Payable 600 (c) Interest Expense 15600 Interest Payable 15000 Discount on Bonds Payable 600 BE14-4 Your answer is correct. The Colson Company issued $300,000 of 10% bonds on January 1, 2013. The bonds are due January 1, 2018, with interest payable each July 1 and January 1. The bonds are issued at 103. Prepare Colson's journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Colson Company records straight-line amortization semi-annually. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account (a) Cash Bonds Payable Premium on Bonds Payable (b) Interest Expense Premium on Bonds Payable Cash (c) Interest Expense Premium on Bonds Payable Interest Payable BE14-5 Your answer is correct. Devers Corporation issued $400,000 of 6% bonds on May 1, 2013. The bonds were dated January 1, 2013, and mature January 1, 2015, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest. Prepare Devers's journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and(c) the December 31 adjusting entry. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account (a) Cash Bonds Payable Interest Expense (b) Interest Expense Cash (c) Interest Expense Interest Payable BE14-6 Your answer is correct. ... View Full Document

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