Question
Bond amortization and journal entries - 27 minutes On April 1, 2020, Dancer Ltd. issues a $1,000,000 10-year 3% bond. The market rate of interest
Bond amortization and journal entries - 27 minutes On April 1, 2020, Dancer Ltd. issues a $1,000,000 10-year 3% bond. The market rate of interest is 4%. As the market rate is higher than the bond rate, the bonds issue at a discount. The bond quote is 91.824. The bonds pay interest semi-annually on April 1 and October 1. The Company's fiscal year end is January 31. Required: a) Prepare a bond amortization schedule for the issuance and the first two interest periods b) Record the journal entry required on: i. The first interest payment (October 1, 2020) ii. The company's fiscal year-end (January 31, 2021) iii. The second interest payment (April 1, 2021)
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