help in year 2

help in the final question year 2

Mastery Problem: Liabilities: Bonds Payable SpringFit Corporation You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an Wert audit of the business. You will be there payahles issued by Spring Fit Corporation. Your first task is to review the previous year's journal entre town as follows: Journal Entries, Year 1 Journal Date Description Debit Credit Jan. 1 Cash 1,062,060 Premium on Bonds Payable Bonds Payable 1.000,000 22.000 Jun 30 were pense Premium on Bonds Payable Cash 19,397 3,103 22,500 1 Cashy Discount on endis Payable Bonds Payable 1.921,280 7,720 2.000.000 Dec 31st pense Premium on Bonds Paya Cash 19,397 3,103 22.500 31 Interest Expen Discount on bonds Paywele Cash 6,500 35,000 Check My Work My were SO BU 4: 80 : PE 1 $ 4 % 5 & 7 NO 8 9 0 6 3 T Y o U . E are Minber M joumal Ent Introduction introduction in Course SP2 Ured Printem Chapter 11 Mastery Problem Discount on Bonds Payable Cash 6,560 35,000 31 80,354 Retained Earnings Interest Expense 80,354 Bonds Payable Review the journal entries on the Spring Fit Corporation panel, then answer the following questions 1. Assuming that no bonds had been issued prior to Year 1, bow many different bonds appear in the journal entries for this year? 2 2. Which entry shows bonds issued at a contract rote lower than the market rate of interest? Choose the date. July 1 3. How much interest was paid during the year on the bonds in question (2) 35,000 4 What is the carrying amount of the bonds in question (2) at the end of the year? 1,927,840 5. Which entry shows bonds that sold for more than their face amount? Choose the date. Jan. 1 6. How much Interest was paid during the year on the bonds in question (5) 45,000 7. Assuming that straightenorisation is used for the bonds in question (5), what is the bond life? 10 years Check My Work 2 more Check My Work to remaining Save and Assignment Score 69.23% Introduction in Course SP2 Chapter 11 Mastery Problem Print Item 1,927,840 5. Which entry shows bonds that sold for more than their face amount? Choose the date. Jan. 1 6. How much interest was pald during the year on the bonds in question (5)? 45,000 7. Assuming that straight-line amortization is used for the bonds in question (5), what is the bond life? 10 years B. What is the carrying value of the bonds in question (5) at the end of the year? 1,055,854 Fotback Check My Work 1. Review the puratenines carefully 2. What type of bond has a contract rate lower than the prevailing market rate7 3. Review the journal entre carefully 4. How is carrying value determined for discounted bonds? 5. What type of bond sells for more than the face amount? 6. Review the journal es carefully 7. What is amortired? How does motion rate to bond life? A How is carry value determined for bonds soldata promium? Check My Work 2 more Check My Work uses roming Assignment Score: 69.23% Chapter 11 Mastery Problem Print Item You have been asked to continue your work on the SpringFit Corporation audit. The journal entries for the current year are shown as follows: Journal Date Description Debit Credit Jun 30 Interest Expense 19,397 Premium on Bonds Payable 3,103 Cash 22,500 30 Interest Expense Discount on Bonds Payable Cash 41,560 41,560 6,560 35,000 30 2,000,000 Bonds Payable Gain on Redemption of Bonds Discount on Bonds Payable Cash 41,000 65,600 1,893,400 Dec. 31 Interest Expense Premium on Bonds Payable Cash 19,397 3,103 22,500 31 Retained Earnings Interest Expense 30,354 80,354 31 Bonds Payable Premium on Bonds Payable Loss on Redemption of Bonds Cash 500,000 24,824 20,600 545,424 545,424 Final Questions Considering the journal entries for both years, answer the following questions Check My Work 2 more Check My Works remaining Assignment Score: 69.23% Chapter 11 Mastery Problem Print item Bonds Payable 500,000 Premium on Bonds Payable 24,824 Loss on Redemption of Bonds 20,600 Cash Final Questions Considering the joumal entries for both years, answer the following questions 545,424 1. Were the bonds in the entry on Dec. 31 of Year 2 redeemed at maturity? Cannot be determined 2. You suspect there is an error in one of the bond redemption entries. Assuming that the amounts are correct, which entry is questionable? Both entries are correct. Why? There should not be a loss on a bond with a premium. 3. Why do some bonds sell below face value? The face value of some bonds is below market value. 4. Which of the following items are amortized? a. Bonds b. Discounts c. Future cash receipts d. Redemption amount e Premiums 1. Contract rate of interest It depends on the face value of the bond h. Interest expenses Check My Work 2 more Cho My Work remaining Assignment or 23% Mastery Problem: Liabilities: Bonds Payable SpringFit Corporation You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an Wert audit of the business. You will be there payahles issued by Spring Fit Corporation. Your first task is to review the previous year's journal entre town as follows: Journal Entries, Year 1 Journal Date Description Debit Credit Jan. 1 Cash 1,062,060 Premium on Bonds Payable Bonds Payable 1.000,000 22.000 Jun 30 were pense Premium on Bonds Payable Cash 19,397 3,103 22,500 1 Cashy Discount on endis Payable Bonds Payable 1.921,280 7,720 2.000.000 Dec 31st pense Premium on Bonds Paya Cash 19,397 3,103 22.500 31 Interest Expen Discount on bonds Paywele Cash 6,500 35,000 Check My Work My were SO BU 4: 80 : PE 1 $ 4 % 5 & 7 NO 8 9 0 6 3 T Y o U . E are Minber M joumal Ent Introduction introduction in Course SP2 Ured Printem Chapter 11 Mastery Problem Discount on Bonds Payable Cash 6,560 35,000 31 80,354 Retained Earnings Interest Expense 80,354 Bonds Payable Review the journal entries on the Spring Fit Corporation panel, then answer the following questions 1. Assuming that no bonds had been issued prior to Year 1, bow many different bonds appear in the journal entries for this year? 2 2. Which entry shows bonds issued at a contract rote lower than the market rate of interest? Choose the date. July 1 3. How much interest was paid during the year on the bonds in question (2) 35,000 4 What is the carrying amount of the bonds in question (2) at the end of the year? 1,927,840 5. Which entry shows bonds that sold for more than their face amount? Choose the date. Jan. 1 6. How much Interest was paid during the year on the bonds in question (5) 45,000 7. Assuming that straightenorisation is used for the bonds in question (5), what is the bond life? 10 years Check My Work 2 more Check My Work to remaining Save and Assignment Score 69.23% Introduction in Course SP2 Chapter 11 Mastery Problem Print Item 1,927,840 5. Which entry shows bonds that sold for more than their face amount? Choose the date. Jan. 1 6. How much interest was pald during the year on the bonds in question (5)? 45,000 7. Assuming that straight-line amortization is used for the bonds in question (5), what is the bond life? 10 years B. What is the carrying value of the bonds in question (5) at the end of the year? 1,055,854 Fotback Check My Work 1. Review the puratenines carefully 2. What type of bond has a contract rate lower than the prevailing market rate7 3. Review the journal entre carefully 4. How is carrying value determined for discounted bonds? 5. What type of bond sells for more than the face amount? 6. Review the journal es carefully 7. What is amortired? How does motion rate to bond life? A How is carry value determined for bonds soldata promium? Check My Work 2 more Check My Work uses roming Assignment Score: 69.23% Chapter 11 Mastery Problem Print Item You have been asked to continue your work on the SpringFit Corporation audit. The journal entries for the current year are shown as follows: Journal Date Description Debit Credit Jun 30 Interest Expense 19,397 Premium on Bonds Payable 3,103 Cash 22,500 30 Interest Expense Discount on Bonds Payable Cash 41,560 41,560 6,560 35,000 30 2,000,000 Bonds Payable Gain on Redemption of Bonds Discount on Bonds Payable Cash 41,000 65,600 1,893,400 Dec. 31 Interest Expense Premium on Bonds Payable Cash 19,397 3,103 22,500 31 Retained Earnings Interest Expense 30,354 80,354 31 Bonds Payable Premium on Bonds Payable Loss on Redemption of Bonds Cash 500,000 24,824 20,600 545,424 545,424 Final Questions Considering the journal entries for both years, answer the following questions Check My Work 2 more Check My Works remaining Assignment Score: 69.23% Chapter 11 Mastery Problem Print item Bonds Payable 500,000 Premium on Bonds Payable 24,824 Loss on Redemption of Bonds 20,600 Cash Final Questions Considering the joumal entries for both years, answer the following questions 545,424 1. Were the bonds in the entry on Dec. 31 of Year 2 redeemed at maturity? Cannot be determined 2. You suspect there is an error in one of the bond redemption entries. Assuming that the amounts are correct, which entry is questionable? Both entries are correct. Why? There should not be a loss on a bond with a premium. 3. Why do some bonds sell below face value? The face value of some bonds is below market value. 4. Which of the following items are amortized? a. Bonds b. Discounts c. Future cash receipts d. Redemption amount e Premiums 1. Contract rate of interest It depends on the face value of the bond h. Interest expenses Check My Work 2 more Cho My Work remaining Assignment or 23%