On March 31, 2018, Wins Corporation issued $2,000,000 of its 6%, 10-year bonds for $1,758,200 including accrued interest (the effective interest rate 8%) dated January 1, 2018. The bonds interest is paid semi-annually on January 1 and July 1. On January 1, 2020 after paid interest Wins purchased 20% of the bonds on the open market at $350,000 and cancelled them. Wins uses the effective interest rate method for amortization of bond premiums and discounts. Required: 1 Journalize the bonds issued On March 31, 2018? 2. Journalize all interest entries during 2018? 4 Journalize the entry for redemptions of bonds on January 1, 2020 and entries for interest during 2020?

On March 31, 2018, Wins Corporation issued $2,000,000 of its 6%, 10-year bonds for $1,758,200 including accrued interest (the effective interest rate 8%) dated January 1, 2018. The bonds interest is paid semi-annually on January 1 and July 1. On January 1, 2020 after paid interest Wins purchased 20% of the bonds on the open market at $350,000 and cancelled them. Wins uses the effective interest rate method for amortization of bond premiums and discounts. Required: 1 Journalize the bonds issued On March 31, 2018? 2. Journalize all interest entries during 2018? 4 Journalize the entry for redemptions of bonds on January 1, 2020 and entries for interest during 2020?

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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