Wildhorse, Inc. had outstanding $5,820,000 of 10% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,240,000 of 11%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 10% bonds (with unamortized discount of $58,200) at 101 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date July 1 August 1 Account Titles and Explanation (To record issuance of 11% bonds) (To record retirement of 10% bonds) Debit Credit

Wildhorse, Inc. had outstanding $5,820,000 of 10% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,240,000 of 11%, 15-year bonds (interest payable July 1 and January 1) at 98. A portion of the proceeds was used to call the 10% bonds (with unamortized discount of $58,200) at 101 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date July 1 August 1 Account Titles and Explanation (To record issuance of 11% bonds) (To record retirement of 10% bonds) Debit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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