IL Weyntancht,Kimmel, Kieso Accounting Principles, 12th Edition Chapter 15 d) Sh
ID: 2609916 • Letter: I
Question
IL Weyntancht,Kimmel, Kieso Accounting Principles, 12th Edition Chapter 15 d) Show the balance sheet presentation of the bond liability at December 31, 2017 | *P15-7C Tyson Corporation sold $4,000,000, 8%, 10-year bonds on January 1, 2017 The bonds were dated January 1, 2017, and pay interest annually on January I. Tyson Corpo- ration uses the straight-line method to amortize bond premium or discount Instructions (a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 103 (b) Prepare journal entries as in part (a) assuming that the bonds sold at 95 (c) Show balance sheet presentation for the bonds at December 31, 2017, for both the requirements in (a) and (b) dP15-8C The following is taken from thes Liam Corp. balance sheet LIAM CORPORATION Balance Sheet (partial) ashExplanation / Answer
a. issued at premium:
workings:
issued at discount:
workings:
Date Account Debit Credit Jan.1 Cash 41,20,000 Premium on bonds payable 1,20,000 Bonds payable 40,00,000 Dec.31 Interest expense 3,20,000 Interest payable 3,20,000 Dec.31 Premium on bonds payable 12,000 Interest expense 12,000 Balance sheet presentation Long term liabilities: Bonds payable 8%, due Jan 1, 2027 40,00,000 Add: premium unamortised 3,08,000 43,08,000