Question: Module 3: Liabilities & Stockholders' Equity Bonds Payable Chapter 12, Problem Sets Problem 12.4 Ritter Company issues $500,000 of 10%, 10-year bonds on January 1,

Module 3: Liabilities & Stockholders' Equity Bonds Payable Chapter 12, Problem Sets Problem 12.4 Ritter Company issues $500,000 of 10%, 10-year bonds on January 1, 2015 at 95. Interest is payable annually on December 31. Ritter has a calendar year end and uses the straight line method of amortization 1. Prepare the journal entry for January 1, 2015 2 Prepare the journal entry for December 31, 2016 3. Show how the bond would appear on the December 31, 2016 Balance Sheet 4 Prepare the amortization table for Ritter Company's bonds, using the following headings: Date/ Interest Amortization Interest Unamortized Carrying Period Payment of Discount Expense Discount Value 5. Prepare the journal entry for January 1, 2025 when the bond matures. Stonr 1 & 2 and Situation 3

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