On January 1, 2014, Nickelada Inc. purchased a 4%, $50,000 Imax bond for $46,490. Interest is to be paid semi-annually each June 30 and December 31. Nickelada Inc. is planning to hold the bond until maturity. Record the entries on January 1, 2014, and June 30, 2014, based on the partial amortization schedule shownbelow.

Transcribed Image Text:

Cash Interest Recelived Period Interest Revenue Unamortized Carrying Discount Amort. Period Ending Jan. 1/14.. June 30/14.... Discount $3,510 3,115 2,708 Value $46,490 46,885 47,292 1,000 1,000 S1,395 1,407 $395 407