On January 1, 2017, Hi and Lois Company purchased 12% bonds having a maturity value of $300,000, for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Hi and Lois Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

Prepare the journal entry at the date of the bond purchase.?(Enter answers to 2 decimal places, e.g. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2017

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Prepare a bond amortization schedule.?(Round answers to 2 decimal places, e.g. 2,525.25.)

Schedule of Interest Revenue and Bond Premium AmortizationEffective-Interest Method
Date		CashReceived		InterestRevenue		PremiumAmortized		Carrying Amountof Bonds
1/1/17		$		$		$		$
1/1/18
1/1/19
1/1/20
1/1/21
1/1/22

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Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017.?(Round answers to 2 decimal places, e.g. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2017

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Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018.?(Round answers to 2 decimal places, e.g. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2018

Answer rating: 100% (QA)

1 Prepare the journal entry on bond purchase Date Account Titles and Explana... View the full answer