P10-6A Atwater Corporation - 71011

Solution Posted by
bestwritter

bestwritter

Rating : (2)F
Solution Detail
Price: $15.00
  • From: Business,
  • Posted on: Mon 04 Aug, 2014
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

P10-6A: On July 1, 2011, Atwater Corporation issued $2,000,000 face value, 10%, 10-year bonds at $2,271,813.This price resulted in an effective-interest rate of 8% on the bonds. Atwater uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1.

(a) Prepare the journal entry to record the issuance of the bonds on July 1, 2011.

 

(b) Prepare an amortization table through December 31, 2012 (3 interest periods) for this bond issue.

 

(c) Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2011.

 

(d) Prepare the journal entry to record the payment of interest and the amortization of the premium on July 1, 2012, assuming no accrual of interest on June 30.

 

(e) Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2012.

Solution Description

Best Answer

Attachments
P10-6A solution.xlsx
P10-6A solution...