Question: c) Prepare the journal entry for July 1, 2020, d) And the adjusting entry for December 31, 2020, if any. Use the effective-interest method. Mars

c) Prepare the journal entry for July 1, 2020, d) And the adjusting entry for December 31, 2020, if any. Use the effective-interest method.

Mars Cor. issued $6,000,000 of 8% bonds on January 1, 2020, due on January 1, 2025. The interest is to be paid twice a year on July 1 and January 1. The bonds were sold for $5,536,696 and yield a 10% effective annual interest rate. Grove Corporation closes its books annually on December 31. a) Date 01/01/2020 07/01/2020 01/01/2021 07/01/2021 01/01/2022 Cash Interest Interest Expense Amortization Carrying Value $ 5,536,696 $ 240,000 $ 276,835 $ 36,835 $ 5,499,861 $ 240,000 $ 274,993 $ 34,993 $ 5,464,868 $ 240,000 $ 273,243 $ 33,243 $ 5,431,625 $ 240,000 $ 271,581 $ 31,581 $ 5,400,044 1/1/2022 Prepare the journal entry for July 1, 2020, and the adjusting entry for December 31, 2020, if any. Use the effective-interest method. Date Account Debit Credit

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