Whispering Winds Limited issued $4,000,000 of 11% bonds on September 1, 2020, for $4,704,050. The term...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Whispering Winds Limited issued $4,000,000 of 11% bonds on September 1, 2020, for $4,704,050. The term of the bonds is September 1, 2020, to September 1, 2028, with interest payable quarterly each December 1, March 1, June 1, and September 1. The company uses the effective interest method with an effective rate of 8%. Prepare the company's journal entry for the September 1 issuance. (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.) Account Titles and Explanation Debit Credit Prepare the company's journal entry for the December 1 interest payment. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Whispering Winds Limited issued $4,000,000 of 11% bonds on September 1, 2020, for $4,704,050. The term of the bonds is September 1, 2020, to September 1, 2028, with interest payable quarterly each December 1, March 1, June 1, and September 1. The company uses the effective interest method with an effective rate of 8%. Prepare the company's journal entry for the September 1 issuance. (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.) Account Titles and Explanation Debit Credit Prepare the company's journal entry for the December 1 interest payment. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit
Expert Answer:
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
Posted Date:
Students also viewed these accounting questions
-
Journalize the 2014 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. March 1, a $640 customer balance originating in 2013 is judged...
-
A $25 000, 9% bond with interest payable quarterly is redeemable at par in six years. What is the purchase price to yield 8.25% compounded annually?
-
9. The function F(x) = (x+2)-3 for x (-, -2] is one-to-one. Find its inverse 1 function. State the domain and range of F clearly.
-
How might Tommy Hilfiger use advertising as a signal? How is a signal sent and how does it work? Suppose that Tommy Hilfigers marginal cost of a jacket is a constant $100 and the total fixed cost at...
-
Consider the following historical performance data for two different portfolios, the Standard and Poors 500, and the 90-day T-bill. a. Calculate the Fama overall performance measure for both funds....
-
Reread the Self Competency feature entitled Reflections on Conflict Avoiding Managers. Think of a manager you have worked for (or currently work for). What patterns of conflict-handling styles were...
-
Describe the purpose of the internal audit function.
-
Caroline McAfee loaned $400,000 to Carter Oaks Crossing. Joseph Harman, president of Carter Oaks Crossing, signed a promissory note providing that the company would repay the amount with interest in...
-
build a system of management indicators that support a digital program (internet, landing pages, social media, virtual store, etc. for building brand value)
-
= Consider the following discrete time two-period market model. The savings account is given by t 5 55 where and are 51 t for t= 0, 1, 2. The stock price is given by So = 1 and S = and S =...
-
Calculate the following ratios for 2020 and 2021 Current ratio Receivable ratios Inventory turnover Debt to total asset Time interest earned Free cash flow Gross profit margin Profit margin Asset...
-
Determine the meaning of words and phrases as they are used in the text, including figurative and connotative meanings. In the figurative language inAct IV, Scene iii, lines 39-41, of The Tragedy of...
-
Runge Company purchased machinery on January 1 at a list price of $300,000, with credit terms 2/10, n/30. Payment was made within the discount period. Runge paid $15,000 sales tax on the machinery...
-
Write a function to find the shortest path between two nodes in a graph using Dijkstra's algorithm.
-
Jackson Co. has the following information for the first 4 months of this year: Machine hours Cleaning Hours Expense January 2,100. $900 February 2,600 1,200 March 1,600 800 April 2,000 1,000...
-
Identify the problem statement for Apple bites back. Next, identify what will Apple need to do to maintain product innovation and customer loyalty? How has Apple developed extreme loyalty among...
-
(a) Topological sort using Stack (b) Depth First Search (b) Dijkstra's shortest-path algorithm (c) Kruskal's spanning tree algorithm (assume no directions on edges for this algorithm). 5 5 b a 1...
-
In exchange for land, the company received a 12-month note on January 1. The face amount of the note is $1,000, and the stated rate of interest is 13%, compounded annually. The 13% rate is equal to...
-
Zest Company is a Montreal HR firm. Its condensed income statement for the year ended November 30, 2020, is shown below. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Zest...
-
Liam and Katano formed a partnership to open a sushi restaurant by investing $95,000 and $105,000, respectively. They agreed to share profit based on an allocation to Liam of an annual salary...
-
In the chapter-opening vignette featuring Kicking Horse Coffee, Elana Rosenfeld advises that partners avoid a 50/50 partnership split and she strongly suggests obtaining legal counsel in drafting...
-
A DFD is a representation of which of the following? a. relationship among modules, data, and programs of an AIS b. flow of data in an organization c. decision rules in a computer program d. computer...
-
Which of the following statements is false? a. Flowcharts make use of many symbols. b. A flowchart emphasizes the flow of documents or records containing data. c. DFDs help convey the timing of...
-
For each of the following scenarios identify which data processing method (batch or online, real-time) would be the most appropriate. a. Make an airline reservation b. Register for a university...
Study smarter with the SolutionInn App