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Also i forgot to mention that I'm having trouble with the bond amortization schedule Exercise 9-3 On January 1, 2017, Grouper Limited paid $547,697.67 for
Also i forgot to mention that I'm having trouble with the bond amortization schedule
Exercise 9-3 On January 1, 2017, Grouper Limited paid $547,697.67 for 13% bonds with a maturity value of $510,000. The bonds provide the bondholders with a 11% yield. They are dated January 1, 2017, and mature on January 1, 2022, with interest receivable on December 31 of each year. Grouper accounts for the bonds using the amortized cost approach, applies ASPE using the effective interest method, and has a December 31 year end. Prepare the journal entry to record the bond purchase. (Credit account titles are automatically indented when the 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. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Jan 1, 2017 Prepare the journal entry to record interest received and interest income for 2017. (Credit account titles are automatically indented when the 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. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Dec 31, 2017 Prepare the journal entry to record interest received and interest income for 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account titles and enter 0 for the an ounts. Round answers to 2 decimi places, eg 5.7. Date Account Titles and Explanation Debit Credit Dec 31, 2018 Prepare the journal entry to record the redemption of the bond at maturity. (Credit account titles are automatically indented when the 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. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Jan 1, 2022 If Grouper used the straight-line method of discount/premium amortization, prepare the journal entry to record interest received and interest income the company would make each year. (Credit account titles are automatically indented when the 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. Round answers to 2 decimal places, e.g. 52.75.) Account Titles and Explanation Debit Credit Compute the total interest income reported over the five-year period under the effective interest method and the straight-line method. (Round answers to 0 decimal places, e.g 5,275.) Total interest income Effective interest method Straight-line methodStep by Step Solution
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