Current Attempt in Progress On January 1, 2020, Wildhorse Corporation issued 11% bonds with a par...

 

Transcribed Image Text:

Current Attempt in Progress On January 1, 2020, Wildhorse Corporation issued 11% bonds with a par value of $5,170,000, due in 10 years. The company incurred $195,000 in costs associated with the issuance of the bonds, which were capitalized. The bonds were issued at 102, and paid interest on January 1 and July 1 each year. Wildhorse's year-end was March 31. The company followed ASPE and chose to use the straight-line method of amortization for bond discounts or premiums. Your answer is partially correct. Prepare the journal entry to record the issue of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Credit Date Account Titles and Explanation Jan. Cash 1 Bonds Payable e Textbook and Media Your answer is partially correct. Account Titles and Explanation Interest Expense Bonds Payable Interest Payable e Textbook and Media Debit Debit 4923300 Prepare the entries required on March 31, 2020 to accrue interest and record any amortization required. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 4923300 Assistance Used Credit Current Attempt in Progress On January 1, 2020, Wildhorse Corporation issued 11% bonds with a par value of $5,170,000, due in 10 years. The company incurred $195,000 in costs associated with the issuance of the bonds, which were capitalized. The bonds were issued at 102, and paid interest on January 1 and July 1 each year. Wildhorse's year-end was March 31. The company followed ASPE and chose to use the straight-line method of amortization for bond discounts or premiums. Your answer is partially correct. Prepare the journal entry to record the issue of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Credit Date Account Titles and Explanation Jan. Cash 1 Bonds Payable e Textbook and Media Your answer is partially correct. Account Titles and Explanation Interest Expense Bonds Payable Interest Payable e Textbook and Media Debit Debit 4923300 Prepare the entries required on March 31, 2020 to accrue interest and record any amortization required. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 4923300 Assistance Used Credit

Answer rating: 100% (QA)

Journal entry to record the issue of the bonds Date Account Ti... View the full answer