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On January $1,2023,$ Headland Corporation purchased a newly issued $$1,300,000$ bond. The bond matured on December $31,2025,$ and paid interest at $6\%$ every June $30$ and December $31.$ The market interest rate was $8\%.$ Headland$$s fiscal year$-$end is October $31,$ and the company had the intention and ability to hold the bond until its maturity date. The bond will be accounted using the amortized cost model.

Click here to view Table A$\mathrm{.}2-$ PRESENT VALUE OF $1-($PRESENT VALUE OF A SINGLE SUM$)$

Click here to view Table A$\mathrm{.}4-$ PRESENT VALUE OF AN ORDINARY ANNUITY OF $1$

$($a$)$

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Calculate the price paid for the bond using a financial calculator or Excel functions. $($Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

PV $enter the price paid for the bond in dollars

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List of Accounts

Attempts: $1$ of $1$ used

$($b$)$

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Prepare an amortization schedule for the bond. $($Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.)$

Date

Cash

Received

Interest

Revenue

Discount

Amortization

Amortized Cost

$($Present Value$)$

Jan. $1,2023$

$enter a dollar amount

June $30,2023$

$enter a dollar amount

$enter a dollar amount

$enter a dollar amount

enter a dollar amount

Dec. $31,2023$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

June $30,2024$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

Dec. $31,2024$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

June $30,2025$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

Dec. $31,2025$

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

Totals

$enter a total amount

$enter a total amount

$enter a total amount

eTextbook and Media

List of Accounts

Attempts: $1$ of $1$ used

$($c$)$

Prepare the journal entries on the books of Headland Corporation for each of the following dates. $($Round answers to $2$ decimal places, e$.$g$.52\mathrm{.}75.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.$)$

$$ January $1,2023$

$$ June $30,2023$

$$ October $31,2023$

$$ December $31,2023$

$$ December $31,2025($two entries$)$ one for interest and one for maturity of bond

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date

enter an account title to record collection of interest

enter a debit amount

enter a credit amount

enter an account title to record collection of interest

enter a debit amount

enter a credit amount

enter an account title to record collection of interest

enter a debit amount

enter a credit amount

enter an account title to record collection of interest

enter a debit amount

enter a credit amount

$($To record collection of interest.$)$

choose a transaction date

enter an account title to record maturity of bond

enter a debit amount

enter a credit amount

enter an account title to record maturity of bond

enter a debit amount

enter a credit amount

$($To record maturity of bond.$)$

eTextbook and Media

List of Accounts

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