1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vekshin1
2 years ago
12

On September 30, 2012, Wildhorse Company issued 9% bonds with a par value of $580,000 due in 20 years. They were issued at 97 an

d were callable at 103 at any date after September 30, 2017. Because Wildhorse Company was able to obtain financing at lower rates, it decided to call the entire issue on September 30, 2018, and to issue new bonds. New 7% bonds were sold in the amount of $700,000 at 104; they mature in 20 years. Wildhorse Company uses straight-line amortization. Interest payment dates are March 31 and September 30.
Required:
Prepare journal entries to record the redemption of the old issue and the sale of the new issue on September 30, 2018.
Business
1 answer:
xxMikexx [17]2 years ago
8 0

Answer:

Wildhorse Company

Journal Entries:

September 30, 2018:

Debit 9% Bonds Payable $580,000

Debit Bond Redemption Expenses $17,400

Credit Cash $597,400

To record the redemption of the 9% Bonds Payable at 103.

September 30, 2018:

Debit Cash $728,000

Credit 7% Bonds Payable $700,000

Credit Bonds Premium $28,000

To record the sale of 7% Bonds Payable at 104.

Explanation:

a) Dat and Calculations:

9% bonds payable at par value = $580,000

Issued at a discount of $17,400 ($580,000 * 97/100) - $580,000

Redeemed at a premium of $17,400 ($580,000 * 103/100) - $580,000

7% bonds payable at par value = $700,000

Issued at a premium of $28,000 ($700,000 * 104/100) - $700,000

You might be interested in
Look at the picture, which one is the correct answer?
Vinil7 [7]
I think it “A law of demand”?
4 0
3 years ago
What does the free rider problem suggest might happen if the government stopped collecting taxes and relied on voluntary contrib
nadya68 [22]

Many public services would have to be eliminated

7 0
3 years ago
Read 2 more answers
Wegmans sends deli employees to france to learn about cheese. wegmans is attempting to meet ____ needs.
Iteru [2.4K]
I would say that wedgemans is trying to meet employees needs for development of their knowledge and for in this case the privilege of going to learn about the types of cheeses and perhaps their making in another country which is an additional benefit and which will most likely encourage the employees to work more effectively and with more interest in their work.
4 0
3 years ago
Human milk provides approximately _____ percent of kilocalories from fat. 30 40 50 60
Luden [163]

The answer to this question is that human milk provides approximately 60 percent of kilocalories from fat. Human milk or breast milk gives a lot of benefits to the mother and the new born baby. Breastfeeding gives a high connection to the baby and the risk of having infections and resistance from sickness like flu and colds of a breastfeed baby is another benefit of drinking human milk.

7 0
3 years ago
In an economy without government purchases, government transfers, or taxes, aggregate autonomous consumer spending is $750 billi
Shalnov [3]

Answer:

$1,050 billion + [(0.75) x YD]

Explanation:

To determine the expression for planned aggregate spending we must first add consumer spending and planned investment spending = $750 billion + $300 billion = $1,050 billion. Then for the rest of the equation we must multiply the marginal propensity to consume (0.75) times disposable income.

5 0
3 years ago
Other questions:
  • Consider the following two countries. Assume they produce only these two goods. Note that productivity is now measured in how ma
    13·1 answer
  • Customers arrive at a common queue at the coffee station with two identical coffee machines in a busy mall at the rate of 48 per
    10·1 answer
  • When determining costs of jobs, how does a company account for indirect materials?
    14·1 answer
  • The epa is planning to stiffen the requirements for cleaning pollutants from the stacks of? coal-fired electricity generating? p
    7·1 answer
  • Operating a summer band camp - what would be the input - the conversion, and the output?
    6·2 answers
  • Activity based costing _____________
    7·1 answer
  • In 2010, $1.00 U.S. bought 8.24 Chinese yuan and in 2012 it bought 6.64 Chinese yuan. How many U.S. dollars could 1 Chinese yuan
    8·1 answer
  • 9.
    8·2 answers
  • 2. Which two of the following are most likely to be advantages of taking on a
    14·1 answer
  • The competitive situation where at&t, mci, and sprint control approximately 80 percent of the international long-distance te
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!