On January 1, 2022, Sheridan Company issued $2,060,000 face value, 8%, 10-year bonds at $1,927,796. This price resulted in an effective-interest rate of 9% on the bonds. Sheridan uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. (a) Correct answer iconYour answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 enter an account title for the journal entry on January 1, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1, 2022 enter a debit amount enter a credit amount eTextbook and Media Assistance Used List of Accounts Attempts: 1 of 5 used (b) Correct answer iconYour answer is correct. Prepare an amortization table through December 31, 2024 (three interest periods) for this bond issue. (Round answers to 0 decimal places, e.g. 15,250.) Sheridan Company Bond Discount Amortization Effective-Interest Method—Annual Interest Payments Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value Issue date $enter Unamortized Premium in dollars $enter Bond Carrying Value in dollars 1 $enter Interest to Be Paid in dollars $enter Interest Expense in dollars $enter Discount Amortization in dollars enter Unamortized Premium in dollars enter Bond Carrying Value in dollars 2 enter Interest to Be Paid in dollars enter Interest Expense in dollars enter Discount Amortization in dollars enter Unamortized Premium in dollars enter Bond Carrying Value in dollars 3 enter Interest to Be Paid in dollars enter Interest Expense in dollars enter Discount Amortization in dollars enter Unamortized Premium in dollars enter Bond Carrying Value in dollars eTextbook and Media List of Accounts Attempts: 2 of 5 used (c) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2022. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount eTextbook and Media

On January 1, 2022, Sheridan Company issued $2,060,000 face value, 8%, 10-year bonds at $1,927,796. This price resulted in an effective-interest rate of 9% on the bonds. Sheridan uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. (a) Correct answer iconYour answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 enter an account title for the journal entry on January 1, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1, 2022 enter a debit amount enter a credit amount eTextbook and Media Assistance Used List of Accounts Attempts: 1 of 5 used (b) Correct answer iconYour answer is correct. Prepare an amortization table through December 31, 2024 (three interest periods) for this bond issue. (Round answers to 0 decimal places, e.g. 15,250.) Sheridan Company Bond Discount Amortization Effective-Interest Method—Annual Interest Payments Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value Issue date $enter Unamortized Premium in dollars $enter Bond Carrying Value in dollars 1 $enter Interest to Be Paid in dollars $enter Interest Expense in dollars $enter Discount Amortization in dollars enter Unamortized Premium in dollars enter Bond Carrying Value in dollars 2 enter Interest to Be Paid in dollars enter Interest Expense in dollars enter Discount Amortization in dollars enter Unamortized Premium in dollars enter Bond Carrying Value in dollars 3 enter Interest to Be Paid in dollars enter Interest Expense in dollars enter Discount Amortization in dollars enter Unamortized Premium in dollars enter Bond Carrying Value in dollars eTextbook and Media List of Accounts Attempts: 2 of 5 used (c) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2022. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount enter an account title for the journal entry on december 31, 2022 enter a debit amount enter a credit amount eTextbook and Media

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(a)

Correct answer iconYour answer is correct.

Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when 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.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2022	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter a credit amount

eTextbook and Media

Assistance Used

List of Accounts

Attempts: 1 of 5 used

(b)

Correct answer iconYour answer is correct.

Prepare an amortization table through December 31, 2024 (three interest periods) for this bond issue. (Round answers to 0 decimal places, e.g. 15,250.)

Sheridan Company Bond Discount Amortization Effective-Interest Method—Annual Interest Payments
Annual Interest Periods	Interest to Be Paid	Interest Expense to Be Recorded	Discount Amortization	Unamortized Discount	Bond Carrying Value
Issue date				$enter Unamortized Premium in dollars	$enter Bond Carrying Value in dollars
1	$enter Interest to Be Paid in dollars	$enter Interest Expense in dollars	$enter Discount Amortization in dollars	enter Unamortized Premium in dollars	enter Bond Carrying Value in dollars
2	enter Interest to Be Paid in dollars	enter Interest Expense in dollars	enter Discount Amortization in dollars	enter Unamortized Premium in dollars	enter Bond Carrying Value in dollars
3	enter Interest to Be Paid in dollars	enter Interest Expense in dollars	enter Discount Amortization in dollars	enter Unamortized Premium in dollars	enter Bond Carrying Value in dollars

eTextbook and Media

List of Accounts

Attempts: 2 of 5 used

(c)

Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2022. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when 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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2022	enter an account title for the journal entry on december 31, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on december 31, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on december 31, 2022	enter a debit amount	enter a credit amount

eTextbook and Media

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