On June 1, 2019, Vaughn Company sold $ 3.,180.000 in long-term bonds for $ 2.789.200. The...

   

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On June 1, 2019, Vaughn Company sold $ 3.,180.000 in long-term bonds for $ 2.789.200. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. (Please round interest expense and bond discount columns to zero decimal places.) Debit Credit Carrying Date Credit Cash Interest Expense Bond Discount Amount of Bonds 6/1/19 5/31/20 $ 256,600 281,372 26,972 5/31/21 5/31/22 5/31/23 e Textbook and Media Assistance Used List of Accounts Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2021. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 %24 %24 On June 1, 2019, Vaughn Company sold $ 3.,180.000 in long-term bonds for $ 2.789.200. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. (Please round interest expense and bond discount columns to zero decimal places.) Debit Credit Carrying Date Credit Cash Interest Expense Bond Discount Amount of Bonds 6/1/19 5/31/20 $ 256,600 281,372 26,972 5/31/21 5/31/22 5/31/23 e Textbook and Media Assistance Used List of Accounts Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2021. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 %24 %24

Answer rating: 100% (QA)

A C D E Credit cash A Debit Interest Expense Carrying Amount og B... View the full answer