FREE Trial

The following is an excerpt taken from the December 31, 2011, balance sheet of the Wimbledon Company: The bonds have

Question:

The following is an excerpt taken from the December 31, 2011, balance sheet of the Wimbledon Company:
The following is an excerpt taken from the December 31,

The bonds have a stated interest rate of 8% and mature on January 1, 2017. Interest is paid semiannually on July 1 and January 1. The bonds are callable at 105 on any semiannual interest date.
Required
a. Prepare the journal entry to record the payment of bond interest on January 1, 2012.
b. Prepare the journal entry to amortize the bond discount and pay the interest on July 1, 2012.
c. Prepare the journal entry to record the redemption of the bonds on July 1, 2012, after the interest has been paid.
d. Prepare the adjusting journal entry for December 31, 2012, assuming that the bonds were not redeemed.
e. Show how all liabilities related to the bonds would be reported on Wimbledon's balance sheet at December 31, 2012.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Transcribed Image Text:

Current liabilities Bond interest payable S 64,000 Long-term liabilities Bonds payable Less: Discount on bonds payable 1,600,000 30,000 $1,570,000 Carrying value

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 70% (10 reviews)

ad General Journal Date Account Names and Explanation Debit Credit Jan 1 Bon…View the full answer


answer-question
Answered By
tutor-profile-image
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details. PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+ 3+ Reviews 10+ Question Solved
Related Book For  answer-question
Financial ACCT2

Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: July 16, 2015 03:11:23
See More Questions

Students also viewed these Accounting questions

Q:
The following is an excerpt from MCDX Municipal CDS index on the rise, Credit Default Swap Market Reporting, July 1, 2010 (blog.creditlime.com/2010/07/01/municipal-cds-index-rising/) The 5-year MCDX...
A:
a A 5 year MCDX is a credit default swap CDS index of 50 municipal credits ranging from general obligation debt to revenue bonds from municipal authorities excluding tobacco and healthcare bond issues......
Q:
Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.
A:
a Cash 50 000 Common Stock 0 50 Par Value 50 000......
Q:
Prepare the journal entry to record Selectist Companys issuance of 104,000 shares of no-par value common stock assuming the shares: a. Sell for $15 cash per share. b. Are exchanged for land valued at...
A:
a Cash 1 560 000 Common Stock No Par......
Q:
In evaluating employee performance and determining salary raises, a company uses a large number of subjective and objective criteria gathered from numerous evaluators that are then combined together...
A:
Look at the scatterplot If you do not include last two points with ext......
Q:
Consider the charges brought against the BLMIS auditor, Friehling, regarding his failure to complete certain audit steps. If you were auditing BLMIS, what type of evidence would you like to review to...
A:
According to paragraph 21 of AU Section 326 To be competent evidence regardless of its form must be both valid and relevant Indeed the validity of evi......
Q:
Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions...
A:
1 Allocation of costs The Admissions Department costs are allocated on the basis of enrollment The m......
Q:
Rachel is either a journalist or a newscaster. ( J, N ) Translate the following statements into symbolic form. Avoid negation signs preceding quantifiers. The predicate letters are given in...
A:
To translate the statement Rachel is either a journalist or a newscaster into symboli......
Q:
Refer to the information in E53, but now assume that Grace does not pay for services until March 31, missing the 2% sales discount. In E53, On March 12, Medical Waste Services provides services on...
A:
March 12 Debit Credit Accounts Rec......
Q:
Evaluate the average accuracy for the whole test dataset and find out which classes performed well, and the classes that did not perform well. Finish the code and calculate the accuracy for each...
A:
To finish the code to calculate the accuracy for each class you can add the following code for i in......
Q:
A 10-year, 4.5 percent, semiannual coupon bond issued by Tyler Rentals has a $1,000 face value. The bond is currently quoted at 100.2 percent of par. What is the clean price of this bond if the next...
A:
Soution Given we know know that The option Clean P......
Q:
The following is a list of liability accounts on the ledger of Chop House Incorporated on January 1: Sales Tax Payable .....$ 7,500 Accounts Payable ..... 9,500 Unearned Revenue ... 16,500 The...
A:
a and b General Journal Date Account Names and Explanation Debit Credit Jan 1 Cash 25 00......
Q:
Gateway Unlimited sold $2,000,000 of 6-year, 10% bonds on January 1, 2012. The bonds pay interest semiannually on July 1 and January 1. The bonds sell at 97. The straight-line method is used to...
A:
a 2012 Jan 1 Cash 1 940 000 Discount on Bonds Payable 60 000 Bonds Payable 2 000 000 2 000 000 97 1 940 000 July 1 Interest Expense 105 000 Discount o......
Q:
In the Oregon Pick 4 lottery game, a bettor selects four numbers between 0 and 9 and any selected number can be used more than once. Winning the top prize requires that the selected numbers match...
A:
Because repetition is allowed numbers are selected with r......
Q:
Christopher died in 2013 and is survived by his wife, Chloe, and their 18- year-old son, Dylan. Chloe is the executor of Christophers estate and maintains the household in which she and Dylan live....
A:
Chloe s filing status for each of the years 2013 2014 and 2015 depends on her specific situation and......
Q:
A hot stream provides 2 kg/s at 200 C, with specific heat 3 kcal/kg C. A cold stream is available at 30 C and with specific heat of 2 kcal/kg C. 1. Determine the flowrate of the cold stream...
A:
1 Energy balance Q h Q c m h c h T h T c m c c c T c T c where m h is the mass flow rate of the hot stream kg s c h is the specific heat of the hot st......
Q:
A large number of commuters walk in and out of train stations every day. The changing pressure on the floor could be utilized to generate electricity. Each weekday, 3.64 million passengers walk...
A:
To calculate the......
Q:
Post-combustion carbon capture is increasingly being considered in power plants that burn fossil fuels such as coal or natural gas. Typical flue gas is at 40 C and has 13 percent CO 2 ; the...
A:
The minimum work that must be done to separate flue gas into a stream of pure CO2 is the Gibbs free......
Q:
A common annoyance in cars in winter months is the formation of fog on the glass surfaces that blocks the view. A practical way of solving this problem is to blow hot air or to attach electric...
A:
Finite Difference Method for Heat Transfer in the Glass Consider a one dimensional heat transfer problem in the glass with the following governing equ......
Q:
Solve each of the following equations. x x = 15
A:
Given that X 1 4 X 15 or we ca......
Q:
A firm offers two products for sale. The marginal cost of one product is new zero once the first unit has been produced. The marginal cost of the other product rises as output rises. What would be...
A:
If you use the MR MC rule to determine price then the price of the f......
Q:
Adjustment data for Nocturnal Laundry, Inc., for the year ended August 31, 2007, are as follows: a. Wages accrued but not paid at August 31, $3,200. b. Depreciation of equipment during the year,...
A:
1 Statement of Balance Sheet Income Cash Flows Assets Liabilities Stockholders Equity Statement Laundry Prepaid Laundry Acc Accts Wages Capital Retain......
Q:
Tyro Health Care, Inc., is owned and operated by Dr. Ricky Owens, the sole stockholder. During March, Tyro Health Care entered into the following transactions: Mar. 2 Received $10,800 from Mutton...
A:
Statement of Balance Cash Flows Assets Accts Prepaid Acc Cash Rec Insurance Supplies Building Dep Balances Mar 1 7 000 9 900 360 220 60 000 4 800 Mar......
Q:
Adjustment data for Tyro Health Care Inc. for March are as follows: 1. Insurance expired, $360. 2. Supplies on hand on March 31, $870. 3. Depreciation on building, $1,200. 4. Unearned rent revenue...
A:
Statement of Balance Cash Flows Assets Accts Prepaid Acc Cash Rec Insurance Supplies Building Dep Ba......
GMAT Premier 2014 With 6 Practice Tests 1st Edition - ISBN: 161865053X - Free Book