On January 1. 2020, Stellar Company purchased 10% bonds having a maturity value of $340,000, for...

  
 

Transcribed Image Text:

On January 1. 2020, Stellar Company purchased 10% bonds having a maturity value of $340,000, for $367,149.34. The bonds provide the bondholders with a 8% yield. They are dated January 1.,2020, and mature January 1, 2025. with interest received on January 1 of each year. Stellar Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Your answer is correct. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, Debt Investments 367149 2020 Cash 367149 Your answer is correct. Prepare a bond amortization schedule. (Round answers to 2 decimal places, eg. 2,525.25.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Cash Interest Premium Carrying Amount ceived Revenue Amortized of Bonds 367149 34000 29371.06 4628.06 362521 34000 29001.67 4998.32 357523 34000 28601.84 5398 352125 34000 28169.99 5830 346295 34000 27703.59 6296 339998 %24 X Your answer is incorrect. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2020 eTextbook and Media Assistance Used List of Accounts * Your answer is incorrect. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 On January 1. 2020, Stellar Company purchased 10% bonds having a maturity value of $340,000, for $367,149.34. The bonds provide the bondholders with a 8% yield. They are dated January 1.,2020, and mature January 1, 2025. with interest received on January 1 of each year. Stellar Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Your answer is correct. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, Debt Investments 367149 2020 Cash 367149 Your answer is correct. Prepare a bond amortization schedule. (Round answers to 2 decimal places, eg. 2,525.25.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Cash Interest Premium Carrying Amount ceived Revenue Amortized of Bonds 367149 34000 29371.06 4628.06 362521 34000 29001.67 4998.32 357523 34000 28601.84 5398 352125 34000 28169.99 5830 346295 34000 27703.59 6296 339998 %24 X Your answer is incorrect. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2020 eTextbook and Media Assistance Used List of Accounts * Your answer is incorrect. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021