ACC 291, Problem 10-9A

| June 9, 2016

Question
I am struggling in this class because I keep getting tripped up on formulas and calculations. I need help working through this.
The 3014000 I entered was not correct. I am flustered in trying to figure out the rest of this set of problems.

Problem 10­9A

Print by: LISA POLLOCK
ACC/291 ­ 48777311 / Assignment: Week 3 Assignment

*Problem 10­9A
Wempe Co. sold $3,014,000, 7%, 10­year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January
1. The company uses straight­line amortization on bond premiums and discounts. Financial statements are prepared annually.

Your answer is partially correct. Try again.
Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 103 and (2) 98. (Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
No.

Date

Account Titles and Explanation

1. 1/1/14 Cash

Debit

Credit

3014000

Bonds Payable

Premium on Bonds Payable

2. 1/1/14 Cash

Discount on Bonds Payable

Bonds Payable

Your answer is partially correct. Try again.
Prepare amortization tables for issuance of the bonds sold at 103 for the first three interest payments.
Annual
Interest
Periods

Interest to
Be Paid

Interest Expense
to Be Recorded

Premium
Amortization

Unamortized
Premium

Bond
Carrying Value
$

Issue
date

$

$

$

$
3014000

1
2
3
Prepare amortization tables for issuance of the bonds sold at 98 for the first three interest payments.
Annual
Interest
Periods

Interest to
Be Paid

Interest Expense
to Be Recorded
$

Issue
date

Premium
Amortization
$

Unamortized
Premium
$

Bond
Carrying Value
$

$

1
2
3
Your answer is partially correct. Try again.
Prepare the journal entries to record interest expense for 2014 under both of the bond issuances assuming they sold at: (1) 103 and (2) 98.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.

Date

Account Titles and Explanation

Debit

Credit

1. 12/31/14 Interest Expense

Premium on Bonds Payable

Interest Payable

2. 12/31/14 Interest Expense

Discount on Bonds Payable

Interest Payable

Your answer is partially correct. Try again.
Show the long­term liabilities balance sheet presentation for issuance of the bonds sold at 103 at December 31, 2014.
WEMPE Co.
Balance Sheet (Partial)
December 31, 2014
Long­term Liabilities
Bonds Payable

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$ 3014000

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5/28/2015

Problem 10­9A

Add: Premium on Bonds Payable

$

Show the long­term liabilities balance sheet presentation for issuance of the bonds sold at 98 at December 31, 2014.
WEMPE Co.
Balance Sheet (Partial)
December 31, 2014
Long­term Liabilities
Bonds Payable

$

Less: Discount on Bonds Payable

$
Question Attempts: 1 of 3 used

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