Please see attached docs. CHART OF ACCOUNTSASSETS110 Cash111 Petty Cash121 Accounts Receivable122 Allowance for Doubtful Accounts126 Interest Receivable127 Notes Receivable131 Merchandise Inventory141 Office Supplies142 Store Supplies151 Prepaid Insurance191 Land192 Store Equipment193 Accumulated Depreciation-Store Equipment194 Office Equipment195 Accumulated Depreciation-Office EquipmentLIABILITIES210 Accounts Payable221 Salaries Payable231 Sales Tax Payable232 Interest Payable241 Notes Payable251 Bonds Payable252 Discount on Bonds Payable253 Premium on Bonds PayableEQUITY311 Common Stock312 Paid-In Capital in Excess of Par-Common Stock315 Treasury Stock321 Preferred Stock322 Paid-In Capital in Excess of Par-Preferred Stock331 Paid-In Capital from Sale of Treasury Stock340 Retained Earnings351 Cash Dividends352 Stock DividendsREVENUE410 Sales610 Interest Revenue611 Gain on Redemption of BondsEXPENSES510 Cost of Merchandise Sold515 Credit Card Expense516 Cash Short and Over521 Sales Salaries Expense522 Office Salaries Expense531 Advertising Expense532 Delivery Expense533 Repairs Expense534 Selling Expenses535 Rent Expense536 Insurance Expense537 Office Supplies Expense538 Store Supplies Expense541 Bad Debt Expense561 Depreciation Expense-Store Equipment562 Depreciation Expense-Office Equipment590 Miscellaneous Expense710 Interest Expense711 Loss on Redemption of Bonds Dec.31Accrued $3,652 of interest on the installment note. The interest is payable on the date of the nextinstallment note payment.31Paid the semiannual interest on the bonds. The bond discount amortization of $129,575 is combinedwith the semiannual interest payment.Year 3June30Recorded the redemption of the bonds, which were called at 98. The balance in the bond discountaccount is $4,664,707 after payment of interest and amortization of discount have been recorded.Record the redemption only.Sept.30Paid the second annual payment on the note, which consisted of interest of $14,607 and principal of$67,421.Required:1. Journalize the entries to record the foregoing transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOWjournals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals willautomatically indent a credit entry when a credit amount is entered. Round all amounts to the nearest dollar.2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.3. Determine the carrying amount of the bonds as of December 31, Year 2. The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:Year 1July1Issued $32,300,000 of 20-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of11%, receiving cash of $27,116,993. Interest is payable semiannually on December 31 and June 30.Oct.1Borrowed $430,000 by issuing a six-year, 4% installment note to Nicks Bank. The note requires annualpayments of $82,028, with the first payment occurring on September 30, Year 2.Dec.31Accrued $4,300 of interest on the installment note. The interest is payable on the date of the nextinstallment note payment.31Paid the semiannual interest on the bonds. The bond discount amortization of $129,575 is combinedwith the semiannual interest payment.Year 2June30Paid the semiannual interest on the bonds. The bond discount amortization of $129,575 is combinedwith the semiannual interest payment.Sept.30Paid the annual payment on the note, which consisted of interest of $17,200 and principal of $64,828.Dec.31Accrued $3,652 of interest on the installment note. The interest is payable on the date of the nextinstallment note payment.

Bonds:- Bonds represent a financial security for an amount which is provided by an investor to the…

Please see attached docs. CHART OF ACCOUNTS ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 142 Store Supplies 151 Prepaid Insurance 191 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends REVENUE 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 521 Sales Salaries Expense 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 541 Bad Debt Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Please see attached docs.

CHART OF ACCOUNTS
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable
122 Allowance for Doubtful Accounts
126 Interest Receivable
127 Notes Receivable
131 Merchandise Inventory
141 Office Supplies
142 Store Supplies
151 Prepaid Insurance
191 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
221 Salaries Payable
231 Sales Tax Payable
232 Interest Payable
241 Notes Payable
251 Bonds Payable
252 Discount on Bonds Payable
253 Premium on Bonds Payable
EQUITY
311 Common Stock
312 Paid-In Capital in Excess of Par-Common Stock
315 Treasury Stock
321 Preferred Stock
322 Paid-In Capital in Excess of Par-Preferred Stock
331 Paid-In Capital from Sale of Treasury Stock
340 Retained Earnings
351 Cash Dividends
352 Stock Dividends
REVENUE
410 Sales
610 Interest Revenue
611 Gain on Redemption of Bonds
EXPENSES
510 Cost of Merchandise Sold
515 Credit Card Expense
516 Cash Short and Over
521 Sales Salaries Expense
522 Office Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Repairs Expense
534 Selling Expenses
535 Rent Expense
536 Insurance Expense
537 Office Supplies Expense
538 Store Supplies Expense
541 Bad Debt Expense
561 Depreciation Expense-Store Equipment
562 Depreciation Expense-Office Equipment
590 Miscellaneous Expense
710 Interest Expense
711 Loss on Redemption of Bonds

Dec.
31
Accrued $3,652 of interest on the installment note. The interest is payable on the date of the next
installment note payment.
31
Paid the semiannual interest on the bonds. The bond discount amortization of $129,575 is combined
with the semiannual interest payment.
Year 3
June
30
Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount
account is $4,664,707 after payment of interest and amortization of discount have been recorded.
Record the redemption only.
Sept.
30
Paid the second annual payment on the note, which consisted of interest of $14,607 and principal of
$67,421.
Required:
1. Journalize the entries to record the foregoing transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW
journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will
automatically indent a credit entry when a credit amount is entered. Round all amounts to the nearest dollar.
2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.
3. Determine the carrying amount of the bonds as of December 31, Year 2.

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:
Year 1
July
1
Issued $32,300,000 of 20-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of
11%, receiving cash of $27,116,993. Interest is payable semiannually on December 31 and June 30.
Oct.
1
Borrowed $430,000 by issuing a six-year, 4% installment note to Nicks Bank. The note requires annual
payments of $82,028, with the first payment occurring on September 30, Year 2.
Dec.
31
Accrued $4,300 of interest on the installment note. The interest is payable on the date of the next
installment note payment.
31
Paid the semiannual interest on the bonds. The bond discount amortization of $129,575 is combined
with the semiannual interest payment.
Year 2
June
30
Paid the semiannual interest on the bonds. The bond discount amortization of $129,575 is combined
with the semiannual interest payment.
Sept.
30
Paid the annual payment on the note, which consisted of interest of $17,200 and principal of $64,828.
Dec.
31
Accrued $3,652 of interest on the installment note. The interest is payable on the date of the next
installment note payment.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.