Please include calculations of how to get the answers for the journal entries. T
ID: 2417725 • Letter: P
Question
Please include calculations of how to get the answers for the journal entries. Thankyou
The following amortization and interest schedule reflects the issuance of 10-year bonds by Capulet Corporation on January 1, 2008, and the subsequent interest payments and charges. The company’s year-end is December 31, and financial statements are prepared once yearly.
Amortization Schedule
Year
Cash
Interest
Amount
Unamortized
Carrying
Value
(d) On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2008. (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.)
Date
Account Titles and Explanation
Debit
Credit
January 1, 2008
(e) On the basis of the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2008. (Interest is paid January 1.) (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.)
Date
Account Titles and Explanation
Debit
Credit
December 31, 2008
(f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2015. Capulet Corporation does not use reversing entries. (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.)
Date
Account Titles and Explanation
Debit
Credit
January 1, 2015
December 31, 2015
Amortization Schedule
Year
Cash
Interest
Amount
Unamortized
Carrying
Value
Explanation / Answer
Ans 2 No bonds are not amortized onnStraight line method=$8245/10 years is $825 per year but amotized at Effective Interest rate method
Ans 1 Bond is issued at discount of $8245Ans 2 No bonds are not amortized onnStraight line method=$8245/10 years is $825 per year but amotized at Effective Interest rate method
Amortization Schedule Amount Amortized amount per year Carrying Year Cash Interest Unamortized Value 1/1/2008 $8,245 $ 137,655 2008 $16,049 $16,519 7,775 $470 138,125 2009 16,049 16,575 7,249 $526 138,651 2010 16,049 16,638 6,660 $589 139,240 2011 16,049 16,709 6,000 $660 139,900 2012 16,049 16,788 5,261 $739 140,639 2013 16,049 16,877 4,433 $828 141,467 2014 16,049 16,976 3,506 $927 142,394 2015 16,049 17,087 2,468 $1,038 143,432 2016 16,049 17,212 1,305 $1,163 144,595 2017 16,049 17,354 145,900