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On January 1,2025, Marin Company sold 11% bonds having a maturity value of $890,000 for $923,738.00, which provides the bondholders with a 10% yield. The bonds are dated January 1,2025, and mature January 1,2030, with interest payable December 31 of each year. Marin Company allocates interest and unamortized discount or premium on the effective-interest basis.
(a)
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Prepare the journal entry at the date of the bond issuance. (Round answer to 2 decimal places, e.g.38,548.25. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
\table[[Date Account Titles and Explanation,Debit,Credit],[January 1,,,],[2025,,]]
(b)
Prepare a schedule of interest expense and bond amortization for 2025-2027.(Round answer to 2 decimal places, e.g.38,548.25.)
\table[[,,Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method 11% Bonds Sold to Yield 10%],[Date,,Credit Cash (11%),,\table[[Debit Interest],[Expense (10%)]],,Debit Bond Premium,,\table[[Carryi],[Value of E]]],[1/1/25,$,,$,,$,,$,],[12/31/25,,,,,,,,],[12/31/26,,,,,,,,],[12/31/27,,,,,,,,],[,,,,,,Attempts: 0 of 1 used,,]]
(c)
Prepare the journal entry to record the interest payment and the amortization for 2025.(Round answer to 2 decimal places, e.g.38,548.25. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.)
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