Question

Can I get help fixing the answers that are wrong?

Your answer is partially correct. Try again. Stephanie Ram Corporation have a $900,000 "bond issue" dated February 1, 2016 due in 10 years with an annual interest rate of 8%. Interest is payable February 1 and August 1. On April 1, 2016, the bond was sold for $846,900 plus accrued interest. Using the straight-line method, prepare the general journal entries for each of the following: a) The issuance of the bond on April 1, 2016. b) Payment of the semi-annual interest and the amortization of the discount on August 1, 2016. c) Accrual of the interest and the amortization of the discount on December 31, 2016. d) Payment of the semi-annual interest and the amortization of the discount on February 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma- formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.)

Answer 1

date	account titles and explanation	debit	credit
Apr 1 2016	cash	858,900
	discount on bonds payable	53,100
	........To bonds payable		900,000
	........To bond interest payable		12,000
	(cash = 846900+12000 accrued interest)
aug 1	bond interest expense	25,770
	bond interest payable	12,000
	..........To discount on bonds payable		1,770
.........	.........To cash a/c		36,000
	(amount of discount on bonds payable = (53,100/20 payments * 4 months /6 =>$1,770)
dec 31	bond interest expense	32,212.50
	......To discount on bonds payable		2,212.50
	......To bond interest payable		30,000
	(discount on bonds payable = 53,100/20 * 5 /6=>2,212.50)
feb 1	bond interest expense	6,442.50
	bond interest payable	30,000
	........To discount on bonds payable	......	442.50
	........To cash a/c		36,000
	(discount on bonds payable = 53,100/20 *1/6=>442.50)