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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Exercise 10-22
Cole Corporation issued $501,000, 8%, 22-year bonds on January 1, 2014, for $453,691. This price resulted in an effective-interest rate of 9% on the bonds. Interest is payable annually on January 1. Cole uses the effective-interest method to amortize bond premium or discount.
Prepare the schedule using effective-interest method to amortize bond premium or discount of Cole Corporation. (Round answers to 0 decimal places, e.g. 125.)
InterestPeriods
Interest toBe Paid
Interest Expenseto Be Recorded
DiscountAmortization
UnamortizedDiscount
BondCarrying Value
Issue date
$12
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare the journal entries to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2014
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare the journal entries to record the accrual of interest and the discount amortization on December 31, 2014. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2014
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT
Prepare the journal entries to record the payment of interest on January 1, 2015. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2015
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