Problem 10-8A

Yung Corporation sold $2,104,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Yung Corporation uses the straight-line method to amortize bond premium or discount

Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 102.

Prepare journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 96.

(1) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 102 selling price.

(2) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 96 selling price.

 

Transcribed Image Text:

Problem 10-8A Yung Corporation sold $2,104,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Yung Corporation uses the straight-line method to amortize bond premium or discount. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 102. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1. Dec. 31 LINK TO TEXT Date Account Titles and Explanation Jan. 1. Prepare journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Dec. 31 LINK TO TEXT LINK TO TEXT Debit Credit Debit LINK TO TEXT LINK TO TEXT Credit (1) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 102 selling price. YUNG CORPORATION Balance Sheet (Partial) December 31, 2014 (2) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 96 selling price. YUNG CORPORATION Balance Sheet (Partial) December 31, 2014 Question Attempts: 0 of 6 used $ SAVE FOR LATER SUBMIT ANSWER Problem 10-8A Yung Corporation sold $2,104,000, 8%, 5-year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on January 1. Yung Corporation uses the straight-line method to amortize bond premium or discount. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 102. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1. Dec. 31 LINK TO TEXT Date Account Titles and Explanation Jan. 1. Prepare journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bonds sold at 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Dec. 31 LINK TO TEXT LINK TO TEXT Debit Credit Debit LINK TO TEXT LINK TO TEXT Credit (1) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 102 selling price. YUNG CORPORATION Balance Sheet (Partial) December 31, 2014 (2) Show the balance sheet presentation for the bond issue at December 31, 2014, using the 96 selling price. YUNG CORPORATION Balance Sheet (Partial) December 31, 2014 Question Attempts: 0 of 6 used $ SAVE FOR LATER SUBMIT ANSWER

Answer rating: 100% (QA)

8 5year price 102 Determine the journal entry for the issuance bond as foll... View the full answer