On January 1, 2020, Blue Company purchased 10% bonds having a maturity value of $420,000, for...
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On January 1, 2020, Blue Company purchased 10% bonds having a maturity value of $420,000, for $453,537.42. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Blue 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, eg 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 O for the amounts) Date Account Titles and Explanation Jan. 1₁ 2020 eTextbook and Media List of Accounts Date Prepare a bond amortization schedule. (Round answers to 2 decimal places, eg 2.525.25) 1/1/20 S 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 Cash Received I eTextbook and Media List of Accounts Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Debit Interest Revenue Premium Amortized Credit Carrying Amount of Bonds Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (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 O for the amounts.) Date Account Titles and Explanation Dec. 31, 2020 eTextbook and Media List of Accounts Date Account Titles and Explanation Debit Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (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 O for the amounts.) Dec. 31, 2021 Credit Debit Credit On January 1, 2020, Blue Company purchased 10% bonds having a maturity value of $420,000, for $453,537.42. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Blue 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, eg 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 O for the amounts) Date Account Titles and Explanation Jan. 1₁ 2020 eTextbook and Media List of Accounts Date Prepare a bond amortization schedule. (Round answers to 2 decimal places, eg 2.525.25) 1/1/20 S 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 Cash Received I eTextbook and Media List of Accounts Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Debit Interest Revenue Premium Amortized Credit Carrying Amount of Bonds Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (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 O for the amounts.) Date Account Titles and Explanation Dec. 31, 2020 eTextbook and Media List of Accounts Date Account Titles and Explanation Debit Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (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 O for the amounts.) Dec. 31, 2021 Credit Debit Credit
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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