Hw.89. Wookie Company issues 10% , five-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interestpayments.Semiannual Period-End(0) January 1, issuance(1) June 30, first payment(2) December 31, second paymentUse the above straight-line bond amortization table and prepare journal entries for the following.(a) The issuance of bonds on January 1.(b) The first interest payment on June 30.(c) The second interest payment on December 31.View transaction listJournal entry worksheet<1DateJanuary 012Record the issuance of the bonds on January 1.Note: Enter debits before credits.3View transaction listUnamortized Premium$ 8,1117,3006,489Journal entry worksheet< 1 2DateJune 30General Journal3Note: Enter debits before credits.Record the first interest payment on June 30.< PrevWookie Company issues 10% , five-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interestpayments.DebitGeneral JournalSemiannual Period-EndUnamortized Premium(0) January 1, issuance(1) June 30, first payment$ 8,1117,3006,489(2) December 31, second paymentUse the above straight-line bond amortization table and prepare journal entries for the following.(a) The issuance of bonds on January 1.(b) The first interest payment on June 30.(c) The second interest payment on December 31.Credit2 of 2DebitCarrying Value:$ 108,111107,300106,489>Next >CreditCarrying Value$ 108,111107,300106,489 Wookie Company issues 10% , five-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interestpayments.Seniannual Period-End(0) January 1, issuance(1) June 30, first payment(2) December 31, second paymentUse the above straight-line bond amortization table and prepare journal entries for the following.(a) The issuance of bonds on January 1.(b) The first interest payment on June 30.(c) The second interest payment on December 31.View transaction listJournal entry worksheet<1Unamortized Premium$ 8,1117,3006,4892Record the second interest payment on December 31.Note: Enter debits before creditsDateDecember 31General JournalDebitCarrying Value$ 108,111107,300106,489Credit>

ANSWER Par value of bond = $100000 Interest rate = 10% Calculation of premium on bonds…

Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interest payments. Semiannual Period-End (0) January 1, issuance (1) June 30, first payment $8,111 7,300 (2) December 31, second payment 6,489 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. Unamortized Premium Carrying Value $ 108,111 107,300 106,489

Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 and semiannual interest payments. Semiannual Period-End (0) January 1, issuance (1) June 30, first payment $8,111 7,300 (2) December 31, second payment 6,489 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. Unamortized Premium Carrying Value $ 108,111 107,300 106,489

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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