Excel Problem 10-10A Problem 11-2A Problem 11-7A P10-8A
Prepare journal entries to record issuance of bonds, interest, straight-line amortization, and balance sheet presentation
and balance sheet presentation
Yung Corporation sold $ 2,000,000, 7 %, 5 year bonds on January 1, 2014. The bonds were dated January 1, 2014, and pay interest
on January 1. The company uses straight-line amortization on bond premiums or discounts.
Instructions
( a) Prepare all necessary journal entries to record the issuance of the bonds and bond interest expense for 2014,
assuming the bond sold at 102.
( b) Prepare journal entries as in part( a) assuming the bonds sold at 97.
( c) Show the balance sheet presentation for the bond issue at December 31, 2014, using( 1) the 102 selling price, and
then( 2) the 97 selling price
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?".