Wildhorse, Inc. had outstanding $6,180,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,610,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $185,400) at 103 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Record entries in the order displayed in the problem statement. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account

Wildhorse, Inc. had outstanding $6,180,000 of 12% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $9,610,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 97. A portion of the proceeds was used to call the 12% bonds (with unamortized discount of $185,400) at 103 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds. (Record entries in the order displayed in the problem statement. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 13M

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