Question
Burr Motor Company, a manufacturer of small- to medium- sized electric motors, needs additional funds to market a revolutionary new motor. Burr has arranged for
Burr Motor Company, a manufacturer of small- to medium- sized electric motors, needs additional funds to market a revolutionary new motor. Burr has arranged for private placement of a $50,000, five-year, 11% bond issue. Interest on these bonds is paid semi-annually each year on June 30 and December 31. The bond issue is dated and sold on January 1, 2020, proceeds of $48,197.61 to yield 12%. Burr Motor company has a December 31 year end.
Required
1 | Prepare the January 1, 2020 journal entry to issue the bonds payable. | ||||||||||
2 | Prepare a bond interest expense and discount amortization schedule. | ||||||||||
3 | Prepare the journal entries for the first and second interest and discount amortization periods. | ||||||||||
4 | No numbers should be keyed more than once in the schedule, formulas should be used in all appropriate locations. |
If possible please show me the steps to work and use Excel format for the overall answer format I have been struggling with the set up for the question. Thank you!
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