On January 1, 2021, Solo Securities issued a $600,000, 6%, three-year bonds payable. The market rate...

 

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On January 1, 2021, Solo Securities issued a $600,000, 6%, three-year bonds payable. The market rate was 4% at issuance. Interest is paid semi-annually each June 30 and December 31. Solo Securities uses the effective interest method of amortization. Complete the following amortization table (or as many rows as you need) to help answer the questions that follow (round to the nearest dollar): Carrying Value Period (begin) 6/30/21 12/31/21 6/30/22 12/31/22 6/30/23 12/31/23 Market Interest Cash Rate Expense Interest Paid Discount or Premium Amortization Carrying Value (end) 1. Prepare the journal entry to record the issuance of the bonds on 1/1/2021. Show your work. 1/1/21 2. Prepare the journal entry for the first interest payment on 6/30/21. 6/30/21 3. Prepare the journal entry for the second interest payment on 12/31/21. 12/31/21 On January 1, 2021, Solo Securities issued a $600,000, 6%, three-year bonds payable. The market rate was 4% at issuance. Interest is paid semi-annually each June 30 and December 31. Solo Securities uses the effective interest method of amortization. Complete the following amortization table (or as many rows as you need) to help answer the questions that follow (round to the nearest dollar): Carrying Value Period (begin) 6/30/21 12/31/21 6/30/22 12/31/22 6/30/23 12/31/23 Market Interest Cash Rate Expense Interest Paid Discount or Premium Amortization Carrying Value (end) 1. Prepare the journal entry to record the issuance of the bonds on 1/1/2021. Show your work. 1/1/21 2. Prepare the journal entry for the first interest payment on 6/30/21. 6/30/21 3. Prepare the journal entry for the second interest payment on 12/31/21. 12/31/21

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