(Answered) Problemcrop corporation with a december 31 year-end issued

Accounting

Problem

Crop Corporation (with a December 31 year-end) issued $429,000, 3% bonds due in 8 years on May 1, 2016. Interest is paid semi-annually on November 1 and May 1 of each year. On the issuance date, the market rate of interest was 8%, resulting in a price of $304,026 for these bonds. Note: The premium/discount is amortized using the effective interest method.

Do not enter dollar signs or commas in the input boxes.

Round your answers to the nearest whole number.

For transactions with more than one debit or credit, enter the accounts in alphabetical order.

1) Prepare the adjusting entry on December 31, 2016.

2) Show the balance sheet presentation of Bonds Payable and related accounts as at December 31, 2016.

Bonds Payable, 3%, Due May 1, 2023:

Add premium or subtract discount:

Total Non-Current Liabilities:

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