Question

Problem 10-09A (Part 2)

Oriole Company sold $3,250,000, 9%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.

Prepare the journal entries to record interest expense for 2022 under both of the bond issuances assuming they sold at: (1) 101 and (2) 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. 12/31/22 enter an account title to record interest expense assuming option one on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record interest expense assuming option one on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record interest expense assuming option one on December 31, 2017 enter a debit amount enter a credit amount 2. 12/31/22 enter an account title to record interest expense assuming option two on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record interest expense assuming option two on December 31, 2017 enter a debit amount enter a credit amount enter an account title to record interest expense assuming option two on December 31, 2017 enter a debit amount enter a credit amount

Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 101 at December 31, 2022. ORIOLE COMPANY Balance Sheet (Partial) choose the accounting period December 31, 2022For the Year Ended December 31, 2022For the Month Ended December 31, 2022 select an opening subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity enter a balance sheet item $enter a dollar amount select between addition and deduction     Add    Less     : enter a balance sheet item enter a dollar amount $enter a total of the two previous amounts Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 95 at December 31, 2022. ORIOLE COMPANY Balance Sheet (Partial) choose the accounting period For the Year Ended December 31, 2022For the Month Ended December 31, 2022December 31, 2022 select an opening subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity enter a balance sheet item $enter a dollar amount select between addition and deduction     Add    Less     : enter a balance sheet item enter a dollar amount $enter a total of the two previous amounts

List Of Accounts

Problem 10-09A

Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Accrued Pension Liability Bonds Payable Buildings Cash Common Stock Cost of Goods Sold Current Portion of Long-Term Debt Depreciation Expense Discount on Bonds Payable Dividends Equipment Federal Income Taxes Payable Federal Unemployment Taxes Payable FICA Taxes Payable Gain on Bond Redemption Income Tax Expense Income Taxes Payable Insurance Expense Interest Expense Interest Payable Inventory Land Loss on Bond Redemption Mortgage Payable No Entry Notes Payable Other Operating Expenses Payroll Tax Expense Premium on Bonds Payable Prepaid Insurance Property Taxes Payable Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Sales Taxes Payable Service Revenue Share Premium-Conversion Equity State Income Taxes Payable State Unemployment Taxes Payable Subscription Revenue Ticket Revenue Unearned Rent Revenue Unearned Sales Revenue Unearned Service Revenue Unearned Subscription Revenue Unearned Ticket Revenue Union Dues Payable Warranty Liability

Answer 1

Prepare the journal entries to record interest expense for 2022 under both of the bond issuance assuming they sold at: (1) 101 and (2) 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	12/31/22	Interest expense	289250
		Premium on bonds payable (32500/10)	3250
		Interest payable (3250000*9%)		292500
2.	12/31/22	Interest expense	308750
		Discount on bonds payable (162500/10)		16250
		Interest payable		292500