On January 1, 2020, Grouper Company sold 12% bonds having a maturity value of $900,000 for $968,233,
Question:
On January 1, 2020, Grouper Company sold 12% bonds having a maturity value of $900,000 for $968,233, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Grouper Company allocates interest and unamortized discount or premium on the effective-interest basis.
Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. 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.)
Date | Account Titles and Explanation | Debit | Credit |
January 1, 2020 | |||
eTextbook and Media
List of Accounts
Prepare a schedule of interest expense and bond amortization for 2020–2022. (Round answer to 0 decimal places, e.g. 38,548.)
Schedule of Interest Expense and Bond Premium Amortization | ||||||||
| Cash | Interest | Premium | Carrying | ||||
| 1/1/20 | $ | $ | $ | $ | ||||
| 12/31/20 | ||||||||
| 12/31/21 | ||||||||
| 12/31/22 | ||||||||
eTextbook and Media
List of Accounts
Prepare the journal entry to record the interest payment and the amortization for 2020. (Round answer to 0 decimal places, e.g. 38,548. 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.)
Date | Account Titles and Explanation | Debit | Credit |
December 31, 2020 | |||
eTextbook and Media
List of Accounts
Prepare the journal entry to record the interest payment and the amortization for 2022. (Round answer to 0 decimal places, e.g. 38,548. 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.)
Date | Account Titles and Explanation | Debit | Credit |
December 31, 2022 | |||
Expert Answer:
Requirement 1 Journal entry at the date of the bond issuance FV 900000 Issue price 968233 Premium 68... View the full answer
