Cheyenne Co. sells $429,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Cheyenne buys back $128,700 worth of bonds for $134,700 (includes accrued interest). Give entries through December 1, 2022.

Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)

Prepare all of the relevant journal entries from the time of sale until December 31, 2022. Assume that no reversing entries were made. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.

Answer rating: 100% (QA)

FACE VALUE 429000 BOND INTEREST RATE 12 MARKET INTEREST RATE 8 LIFE OF BOND 4 YEARS INTEREST PAYMENT ... View the full answer