ch14_sol

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53696755f4915980c655785f342c6281dd673604.xlsx, Exercise 14-4 Solution, Page 1 of 8, 03/29/2012, 01:32:12 Name: Solution Date: Instructor: Course: \$800,000 of 10% 20 -year bonds on January 1, 2013, at 102 Instructions: Prepare the journal entries to record the following. Jan 1, 13 Cash (\$800,000 × 102%) 816,000 Bonds Payable 800,000 Premium on Bonds Payable 16,000 Jul 1, 13 Interest Expense 39,600 Premium on Bonds Payable (\$16,000 / 40 periods) 400 Cash [\$800,000 × 10% × (6/12)] 40,000 Dec 31, 13 Interest Expense 39,600 Premium on Bonds Payable (\$16,000 / 40 periods) 400 Interest Payable [\$800,000 × 10% × (6/12)] 40,000 Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E14-4 (Entries for Bond Transactions—Straight-Line) Foreman Company issued Interest is payable semiannually on July 1 and January 1. Foreman Company uses the straight-line method of amortization for bond premium or discount. (a) The issuance of the bonds. (b) The payment of interest and related amortization on July 1, 2013. (c) The accrual of interest and the related amortization on December 31, 2013.

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53696755f4915980c655785f342c6281dd673604.xlsx, Exercise 14-4, Page 2 of 8, 03/29/2012, 01:32:12 Name: Date: Instructor: Course: \$800,000 of 10% 20 -year bonds on January 1, 2013, at 102 Instructions: Prepare the journal entries to record the following. Jan 1, 13 Account Title Amount Account Title Formula Account Title Formula Jul 1, 13 Account Title Formula Account Title Formula Account Title Formula Dec 31, 13 Account Title Formula Account Title Formula Account Title Formula Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse E14-4 (Entries for Bond Transactions—Straight-Line) Foreman Company issued Interest is payable semiannually on July 1 and January 1. Foreman Company uses the straight-line method of amortization for bond premium or discount. (a) The issuance of the bonds. (b) The payment of interest and related amortization on July 1, 2013. (c) The accrual of interest and the related amortization on December 31, 2013.
53696755f4915980c655785f342c6281dd673604.xlsx, Exercise 14-5 Solution, Page 3 of 8, 03/29/2012, 01:32:12 Name: Solution Date: Instructor: Course: Foreman Company issued \$800,000 of 10% 20 year bonds on January 1, 2013 at 102 Interest is payable semiannually on July 1 and January 1. Foreman Company uses the effective interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705% Instructions: Prepare the journal entries to record the following. (Round to the nearest dollar.) Jan 1, 13 Cash (\$800,000 × 102%) 816,000 Bonds Payable 800,000 Premium on Bonds Payable 16,000 Jul 1, 13 Interest Expense [\$816,000 × 9.7705% × (6/12)] 39,864 Premium on Bonds Payable 136 Cash [\$800,000 × 10% × (6/12)] 40,000 Dec 31, 13 Interest Expense [\$816,000 × 9.7705% × (6/12)] 39,857 Premium on Bonds Payable [\$815,864×9.7705×(6/12)] 143 Interest Payable [\$800,000 × 10% × (6/12)] 40,000

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This note was uploaded on 03/28/2012 for the course ACC 401 taught by Professor O during the Spring '12 term at Regis University.

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ch14_sol - Name Solution Date Instructor Course...

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