*P15-6B Fernetti Company sold $6,000,000, 8%, 20-year bonds on January 1, 2015. The bonds were dated...

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*P15-6B Fernetti Company sold $6,000,000, 8%, 20-year bonds on January 1, 2015. The bonds were dated January 1 and pay interest annually on January 1. Fernetti Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 96. "2 4² W Instructions (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2015. (b) Prepare a bond discount amortization schedule for the first 4 interest periods. (c) Prepare the journal entries for interest and the amortization of the discount in 2015 and 2016. (d) Show the balance sheet presentation of the bond liability at December 31, 2016. *P15-7B/Rosewell Corporation sold $4,000,000, 7%, 10-year bonds on January 1, 2015. The bonds were dated January 1, 2015, and pay interest annually on January 1. Rosewell Corporation uses the straight-line method to amortize bond premium or discount. Instructions (a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2015, assuming that the bonds sold at 103. (b) Prepare journal entries as in part (a) assuming that the bonds sold at 96. (c) Show the balance sheet presentation for the bond liability at December 31, 2015. *P15-6B Fernetti Company sold $6,000,000, 8%, 20-year bonds on January 1, 2015. The bonds were dated January 1 and pay interest annually on January 1. Fernetti Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 96. "2 4² W Instructions (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2015. (b) Prepare a bond discount amortization schedule for the first 4 interest periods. (c) Prepare the journal entries for interest and the amortization of the discount in 2015 and 2016. (d) Show the balance sheet presentation of the bond liability at December 31, 2016. *P15-7B/Rosewell Corporation sold $4,000,000, 7%, 10-year bonds on January 1, 2015. The bonds were dated January 1, 2015, and pay interest annually on January 1. Rosewell Corporation uses the straight-line method to amortize bond premium or discount. Instructions (a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2015, assuming that the bonds sold at 103. (b) Prepare journal entries as in part (a) assuming that the bonds sold at 96. (c) Show the balance sheet presentation for the bond liability at December 31, 2015.

Answer rating: 100% (QA)

1 Date 2 3 4 5 6 A B Interest payment 112015 112016 112017 E Debit balance in the discount bond dis... View the full answer