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Blossom Lake Corp. issues a $660,000, 4-year, 3% note payable on March 31, 2021. The terms provide for fixed principal payments annually of $165,000. Prepare
Blossom Lake Corp. issues a $660,000, 4-year, 3% note payable on March 31, 2021. The terms provide for fixed principal payments annually of $165,000. Prepare the journal entries to record the note on March 31, 2021, and the first payment on March 31, 2022. (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 O for the amounts.) Date Account Titles and Explanation Mar. 31, Debit Credit 2021 (To record issuance of note. Mar. 31, 2022 (To record payment on note.) On January 1, 2021, Oriole Ltd. issued $440,000 of 5%, 5-year bonds. The bonds were issued to yield a market interest rate of 6%. Oriole's year end is December 31. On January 1, 2023 immediately after making and recording the semi-annual interest payment, Oriole redeemed the bonds. A partial bond amortization schedule is presented below. Interest Payment Interest Expense Amortization Semi-Annual Interest Period Jan. 1, 2021 July 1, 2021 Jan 1, 2022 July 1, 2022 Jan 1, 2023 11,000 11,000 11.000 11,000 $12,637 12,686 12,737 12,789 $1.637 1.686 1.737 1,789 Bond Amortized Cost $421,234 422,871 424,557 426,294 428,083 Prepare the journal entry to record the payment of interest on July 1, 2021. (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 for the amounts.) Debit Credit Date Account Titles and Explanation July 1 (To record interest payment.)
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