ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 135

(a) Classification
Discount on bonds payable
(b) Interest expense (credit balance)
(c) Unamortized bond issue costs
(d) Gain on repurchase of debt
(e)
Mortgage payable (payable in equal amounts over
next 3 years)
(f) Debenture bonds payable (maturing in 5 years)
(g) Notes payable (due in 4 years)
(h) Premium on bonds payable
(i) Bonds payable (due in 3 years)
5) On June 30, 2014, Mischa Auer Company issued $4,166,000
face value of 13%, 20-year bonds at $4,479,407, a yield of 12%. Auer
uses the effective-interest method to amortize bond premium or
discount. The bonds pay semiannual interest on June 30 and
December 31.
(a) Prepare the journal entries to record the following transactions.
(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.)
(b) Show the proper balance sheet presentation for the liability for
bonds payable on the December 31, 2015, balance sheet. (Round
answers to 0 decimal places, e.g. 38,548.)
(c) Provide the answers to the following questions.