Wonder Wilderness Company is considering raising additional capital for further expansion. The company wants to finance a new business venture into guided trips down the Amazon River in South America. Additionally, thecompany wants to add another building on their land to offer more services for local customers.A Click the icon to viewing the financing information.)Read the requirements.Wonder Wilderness's bonds will be issued atV becauseRequirement 2. Record the following transactions. Include dates and round to the nearest dollar. Omit explanations. (Round your answers to the nearest whole dollar. Record debits first, then credits. Exclude explanations fromany journal entries.)a. Cash received from the bond issue.DateAccountsDebitCredit2020Jan. 2b. Cash received from the mortgage payable.DateAccountsDebitCredit2020 More infoWonder Wilderness Company plans to raise the capital by issuing $400,000 of 8%, five-year bonds onJanuary 2, 2020. The bonds pay interest semiannually on June 30 and December 31. The companyreceives $398,100 when the bonds are issued.The company also issues a mortgage payable for $650,000 on January 2, 2020. The proceeds from themortgage will be used to construct the new building. The mortgage requires annual payments of $65,000plus interest for ten years, payable on December 31. The mortgage interest rate is 9%.

Req-1 Wonder Wilderness Company bond will be issued at "Discount" because "cash proceeds are less…

Wonder Wilderness Company plans to raise the capital by issuing $400,000 of 8%, five-year bonds on January 2, 2020. The bonds pay interest semiannually on June 30 and December 31. The company receives $398,100 when the bonds are issued. The company also issues a mortgage payable for $650,000 on January 2, 2020. The proceeds from the mortgage will be used to construct the new building. The mortgage requires annual payments of $65,000 plus interest for ten years, payable on December 31. The mortgage interest rate is 9%.

Wonder Wilderness Company plans to raise the capital by issuing $400,000 of 8%, five-year bonds on January 2, 2020. The bonds pay interest semiannually on June 30 and December 31. The company receives $398,100 when the bonds are issued. The company also issues a mortgage payable for $650,000 on January 2, 2020. The proceeds from the mortgage will be used to construct the new building. The mortgage requires annual payments of $65,000 plus interest for ten years, payable on December 31. The mortgage interest rate is 9%.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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