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Recording entries for bonds




Recording entries for bonds;Following is an amortization table for an issue of three-year bonds on January 1, 2011;Effective Contractual Carrying;Carrying Value at Interest Interest Amortization Value End;Year Beginning of Year Incurred to be Paid of Principal Of Year;2011 $105,154 $8,412 $10,000 $1,588 $103,566;2012 $103,566 $8,285 $10,000 $1,715 $101,851;2013 $101,851 $8,148 $10,000 $1,852 $100,000;Total $24,845 $30,000 $5,155;Required: Place you answer in the shaded boxes below with any computations to the right;A. How much were the bonds sold for?;B. What is the stated (contractual) rate of interest?;C. What is the effective rate of interest?;D. Record the entries necessary over the life of the bonds for the issuance, retirement and yearly interest accrual.;You do not need to record thepaymentof interest.;Date Account Title Debit Credit;1/1/11 Cash The accounts for the first entry have been entered;Premium on Bonds Payable enter the amounts and record the remaining entries.;Bonds Payable Start each entry opposite the date;12/31/11;12/31/12;12/31/13;12/31/13


Paper#29190 | Written in 18-Jul-2015

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