Question
Assume the same facts as in #12 (above). Record the journal entry for the sale of the bonds. (note: the amortized cost of the bonds
Assume the same facts as in #12 (above). Record the journal entry for the sale of the bonds. (note: the amortized cost of the bonds at July 1st is $380,685
Amortization schedule for Problems #6-7:
| Date | Cash received | Interest revenue | Bond Discount Amortization | Carrying Amount of Bonds |
|
| $0 | $0 | $0 | $359,118 |
| 7/1/2011 | $16,000 | $17,956 | $1,956 | $361,074 |
| 12/31/2011 | $16,000 | $18,054 | $2,054 | $363,128 |
| 7/1/2012 | $16,000 | $18,156 | $2,156 | $365,284 |
| 12/31/2012 | $16,000 | $18,264 | $2,264 | $367,548 |
| 7/1/2013 | $16,000 | $18,377 | $2,377 | $369,926 |
| 12/31/2013 | $16,000 | $18,496 | $2,496 | $372,422 |
| 7/1/2014 | $16,000 | $18,621 | $2,621 | $375,043 |
| 12/31/2014 | $16,000 | $18,752 | $2,752 | $377,795 |
| 7/1/2015 | $16,000 | $18,890 | $2,890 | $380,685 |
| 12/31/2015 | $16,000 | $19,034 | $3,035 | $383,721 |
| $160,000 | $184,601 | $24,602 |
|
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