Headland Corporation wished to raise money for a series of upcoming projects. On July 1, 2020, the

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Headland Corporation wished to raise money for a series of upcoming projects. On July 1, 2020, the company issued bonds with a face value of $5,142,000 due in 5 years, paying interest at a face rate of 8% on January 1 and July 1 each year. The bonds were issued to yield 6%. Headland used the effective interest method of amortization for bond discounts or premiums. The company’s year-end was September 30.

Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

Calculate the premium or discount on the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and answers to 0 decimal places, e.g. 5,275.)

Choose the answer from the menu in accordance to the question statement on bond $ Enter your answer in accordance to the question statement eTextbook

Prepare a complete Bond Premium/Discount Amortization Schedule (i.e. all five years) for Headland Corporation. (Round answers to 0 decimal places, e.g. 5,275.)

Date Cash Paid Interest Expense Amortized Carrying Amount

1-Jul-2020 $

1-Jan-2021 $

$ $ 1-Jul-2021

1-Jan-2022

1-Jul-2022

1-Jan-2023

1-Jul-2023

1-Jan-2024

1-Jul-2024

1-Jan-2025

1-Jul-2025

$ $ $ eTextbook and Media List of Accounts

Prepare the journal entry to record the issue of the bonds. Date Account Titles and Explanation Debit Credit July 1, 2020 eTextbook and Media List of Accounts

Prepare any required accrual entry at September 30, 2020. Date Account Titles and Explanation Debit Credit Sept. 30, 2020